The Hub issued a grant to development financier GroFin, which specializes in providing finance and support for small and growing businesses. GroFin provides a combination of medium-term loans and specialized business support to grow emerging market enterprises. Their investment deal ticket sizes are between $100,000 – $1.5 million.
The Hub's grant to GroFin is titled “Catalytic Financial Tool for Under-served Sectors.” The goal is to increase investments in the agribusiness sector in East Africa by screening 200 agribusiness and offering tailor-made technical assistance to the most promising enterprises. By the end of the 19-month project, GroFin expects to have facilitated $10 million of new investment in the agricultural sector.
The Catalytic Financial Tool for Under-served Sectors that we are launching in partnership with Gro-fin was the missing element in our portfolio; it will enable us to provide targeted assistance to SMEs operating in the agriculture sector," said the Hub's Chief of Party Juan Estrada.
GroFin is proud to partner with USAID through the East Africa Trade and Investment Hub to extend the reach of its unique model of access to finance and business support to high impact agribusinesses across East Africa. Our intent is to provide business support and assistance to catalyse investments into food security, staple foods and high value nutrition products and increase the competitiveness of agriculture value chains in the region.” said Rishi Khubchandani, Investment Executive, GroFin Kenya.
The grant targets agribusinesses that:
- Contribute to food security and high-value nutrition products
- Increase the competitiveness of their agriculture value chains regionally
- Support use of innovative technologies to manage waste and losses (e.g. pre and post-harvest management losses)
- Enhance solutions/innovations that increase their productivity and/or reduce water usage and other scarce resources
Agriculture has historically been an unattractive sector for investment, through this partnership with Gro-Fin we are changing perceptions and are now mobilizing capital to revamp East African agribusinesses," said the Hub's Chief of Party Juan Estrada.