Bank of Industry (BoI) and Grow Africa Equity Partners have joined to raise a $60 million venture capital fund for Nigerian small and medium enterprises (SMEs).

 

The fund will provide capital in association with operational and strategic support to early stage and rapidly growing businesses in the agriculture, technology, consumer goods and services spaces.

 

“Nigerian businesses cannot be built on debt alone,” says BoI Managing Director, Rasheed Olaoluwa. “It has long been part of the bank’s vision to find ways to provide sorely needed equity capital and business advice to promising Nigerian businesses. Our partnership with Grow Africa is one of the avenues for realizing this vision and we remain committed to the pursuit of our core mandate of providing long-term financial support to small, medium and large companies/projects in Nigeria’s key sectors’.

 

Under the terms of the partnership, BoI will make a commitment of $6 million to the fund to provide equity capital for growing businesses, based on the performance of Grow Africa’s partners, the development of its portfolio, and their pipeline providing for the opportunity for potential new investments.

 

“Over the past 10 years, I have provided capital and advice that have helped several businesses grow from ideas into multi billion Naira industrial leaders,” said Adedotun Sulaiman, Chairman of Grow Africa Equity Partners. “Through this partnership, I hope to see many more entrepreneurs realize their dreams of creating leading companies and delivering massive value to Nigeria’.