Business Partners International Africa has successfully raised a new contribution to their technical assistance facility from the Business Support Facility of Norfund, one of the company’s investors since 2015. The $250 000 grant marks a significant boost to the many non-financial needs of SMEs in East and Southern Africa. The interest-free technical assistance loans will be structured over a five-year programme intended to enhance a wide range of business processes that will build capacity and foster operational excellence. Norfund’s Business Support Facility is earmarked Norfund’s portfolio companies to enhance the development effects of the investments.
“This programme underscores our commitment to driving sustainable growth in Africa’s SME sector,” says Matthew Cumming, Chief Executive Officer at Business Partners International. “We are now able to provide targeted technical assistance to address the challenges faced by SMEs in sub-Saharan Africa. Challenges like the lack of structured growth plans, inadequate financial literacy, and ineffective or non-existent marketing strategies. Our goal is to help these businesses unlock their full potential through achieving best practices.”
The loans will form part of Business Partners International broader Technical Assistance Programme for SMEs in Sub-Saharan Africa, which has a proven track record of beneficiaries increasing their profitability and facilitating job creation. Through the programme, Business Partners International Africa offers their clients the ability to focus on building their strategic, marketing, and financial capacities.
Since 2016, the programme has facilitated over 480 technical assistance trainings and interventions, enabling SMEs to secure international certifications, improve occupational health and safety standards, and refine their business strategies.
Growing impact, expanding reach
With Norfund’s support, Business Partners International aims to implement over 100 targeted technical assistance interventions within the five-year period to address critical needs outside of working capital or the purchasing of equipment and property including the following:
- Strategic business planning
- Marketing and branding strategies
- Financial and operational management systems
- Achieving international standards and certifications
- Enhancing occupational health and safety standards
- Productivity improvement measures
- Participation in trade fairs
- Legal services like trademark registration
- Recruiting key personnel and staff training
- Leadership training
The intention is to create a ripple effect from these focal points that will improve the overall efficiency, sustainability and competitiveness of SMEs in the region.
“With the original Technical Assistance Programme, we noticed that, of the businesses that benefited from the programme, only 8% were unable to pay back their loans compared to 22% of those who had not,” says Cumming. “What this tells us is there is a substantial need for non-financial support and that it has a tangible impact on a business’ rate of success.”
A shared vision
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Norfund’s Business Support Facility is based on a mutual recognition by the Norwegian Ministry of Foreign Affairs and Norfund for the need for technical and professional assistance in relation to investments in the private sector in developing countries. Norfund is a key investor in Business Partners International.
This contribution to BPI Africa’s technical assistance program highlights the shared vision of fostering resilient and capable SMEs as a cornerstone of economic growth.
The contribution comes at a challenging time for SMEs grappling with global economic shifts as well as local operational constraints. The programme, powered by Norfund’s support, will equip SMEs with the tools and resources they need to succeed and play a vital role in driving innovation, creating jobs, and contributing to the broader socio-economic development of the region.
“The SMEs we serve are at the heart of economic activity in their communities,” adds Cumming. “We are not only empowering individual businesses when we invest in their growth and resilience but nurturing the prosperity of the region as a whole.”
BPI Africa is unique in their ability to support entrepreneurs that otherwise wouldn’t be able to succeed and grow in some of the world’s most challenging markets. Acknowledging that being a responsible investor requires more than just finance, Norfund is pleased to being able to support BPI Africa’s well-functioning technical assistance program.
– Inger B-A Nygaard – Business Support Manager at Norfund
About the Author: Matthew Cumming
