Aspire - Rwanda - Building Better Businesses
The Challenge
Economic development across Africa requires a focus on assisting local enterprises with the potential for growth and expansion. Yet many enterprises lack the business skills, collateral and documented trading history to access local finance for their start-up/early growth. At the same time, commercial borrowing constraints lead to a finance gap in the local market. The Aspire Fund, managed by GroFin, is an innovative commercial approach to meet this challenge and unlock the entrepreneurial talent of Rwanda.
Overcoming the Barriers
The Aspire Fund provides for both business development assistance and early stage finance ($50,000 to $1 million in Rwandan Francs) to enterprises. Only by offering such an integrated approach to enterprise development and financing can the existing market barriers be overcome. This level of finance bridges the existing gap between micro and commercial finance that exists in most African economies. The Aspire Fund is based upon an innovative business model developed in partnership by GroFin and the Shell Foundation and implemented successfully in other African countries.
A unique partnership
Through an active partnership between international finance institutions and foundations, a leading local bank (Banque Commerciale du Rwanda ) together with Shell Foundation and GroFin, a unique new service is provided by the Aspire Fund to overcome the barriers faced by start up and early stage growth enterprises. The goal of this partnership is to act as a pioneering force in the development of the local enterprise sector, and thereby generate wealth, employment, economic growth and social development.
An Innovative Approach
Successful financing of start up and early stage growth enterprises is a specialized business that requires skills, knowledge and experience. GroFin focuses exclusively on providing business development assistance and appropriate finance to such enterprises. The relationship with an enterprise typically starts with the development, or refinement, of a viable business plan and assistance in effectively implementing operations and enhancing management capacity. Financial assistance, in the range of $50,000 to $1 million per enterprise, is tailored to meet the needs of each individual enterprise and typically comes in a blended form of debt and equity at risk adjusted rates of return in local currency. The lack of collateral will not in itself disqualify any enterprise. Upon approval to provide finance, GroFin will continue a close relationship with the enterprise through business development assistance to ensure effective management and growth.
Enterprises eligible for Support
The target market is defined as being those enterprises that have limited or no track record and/or collateral, typically fewer than 50 employees, an annual turnover not exceeding $5 million or gross assets not exceeding $3 million. GroFin will invest in private sector enterprises that have a clear potential for achieving growth and profitability.
The Aspire Fund is managed by GroFin Rwanda.
For more info contact:
Phonebanking: 3227/227
Email: info@bcr.co.rw
Or visit your nearest local branch
