Facing Jordan’s SME challenges & growing in frozen food market

Small and medium-sized businesses employ around a third of Jordan’s private-sector labour force. Yet, World Bank Enterprise Survey data shows that nearly 49% of small and 33% of medium-sized businesses in the country still cite access to finance as a major constraint to their growth.

GroFin allowed Al-Mutamayeza for Frozen Food Trading, which trades under the name Saboba, to overcome this challenge by providing the business with three successive rounds of financing. The company distributes high-quality frozen and processed meat and poultry products. Thanks to GroFin’s investments and continued business support it was able to expand into new geographical regions in Jordan, venture into new market segments and broadened its product range.

Raed and Mohammad Saboba founded the company bearing their name in 2007 in Zarqa, Jordan. They first approached GroFin in 2013 to finance the purchase of additional inventory to expand the distribution network of the business. GroFin also supported Saboba in the formalisation of its business plan and financial projections, equipping the entrepreneurs to monitor progress against the forecasted plan to better identify areas of improvement.

As Saboba grew, GroFin continued to work closely with the business to optimise its product range and pricing, as well as its brand positioning and marketing reach. In 2015, GroFin encouraged Saboba to explore new markets and provided the business with financing to introduce new products targeting hotels, restaurants and catering companies. In response to GroFin’s advice to diversify its product range, Soboba later obtained additional financing to acquire the right to distribute a global brand of powdered milk and other dairy products in Jordan.

Due to the success and improved profitability the company has achieved since partnering with GroFin, Saboba has acquired new premises and its brand is now well-known in Jordan.

“GroFin’s financial and business support resulted in extending our geographical coverage, increasing our number of products from 12 to 25, hiring new employees, and growing sales by over 15% annually,” says Raed Saboba, co-owner of the business.

Saboba currently employs 35 workers, compared to 21 at the time of GroFin’s first investment. However, the company’s growth has not only allowed it to create new job opportunities, but also to enhance the life and careers of its employees. Wafaa Tom is a female employee who joined Saboda in 2016 and heads up the company’s finance department.

“The growth in the company’s operations impacted my knowledge and enriched my career as I am currently dealing with bigger transactions related to a number of reputable customers.”

Alaa Al Faqeer, another female employee at Saboba, says she struggled to find a job with a decent salary as she did not have any tertiary education. All of this changed when a friend encouraged her to apply for a job at Saboba.

“Saboba paid for my tuition to enrol at university and I received a degree in Accounting, which helped me to further develop my career. When I got engaged, Saboba also generously participated in my wedding expenses, as my husband and I could not fulfil all of them,” she says.

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At a mere 14.4%, the World Bank points out that Jordan’s female labour force participation rate is the lowest in the world for a country not at war. This is despite the fact that women comprise more than half of Jordanian university graduates. Gender discrimination in hiring practices contributes to this number, as well as to the country’s high female unemployment rate of nearly 24%. With GroFin’s support, Saboba has empowered Tom and Al Faqeer to overcome these barriers.

Rwanda woman entrepreneur lifts local community out of poverty

Agasaro Organic helps local farmers by adding value to their produce

Pineapples grow easily in the fertile soil of the Nyamasheke District in Rwanda’s Western province. But with the fruit in such high supply during the harvest season and no local means available to process it, farmers here have always struggled to get a decent price for their produce.

As in the rest of the country, agriculture is the main source of income for many households. The Rwandan economy may boast a low unemployment rate, but national labour statistics show that over 60% of the country’s workers are in fact self-employed in the agricultural sector. These subsistence farmers typically have little control over the prices they are paid for their produce and so remain trapped by poverty. Women are also most likely to bear the brunt of poverty as, according to Oxfam, they head close to a third of agricultural households and provide almost two thirds of the labour on family farms.

Agasaro Organic is helping to change this for the 552 farmers in Nyamasheke who now act as its contracted suppliers, Agasaro is a woman-owned business which processes pineapple, maracuja, strawberry, honey and other agricultural products to make organic juices and biscuits.

Agasaro not only offers farmers fair pricing, but also assists them with training and fertilisers to improve their yield. Sindayigaya John (33), a pineapple farmer who employs 25 workers to work his land, says working with Agasaro has allowed him to earn more than double the income he did when he sold his fruit at local markets:

“Working with Agasaro has improved our lives. My two children are now going to a better school and I am paying my employees’ salaries on time, which has also improved their lives. My vision is to one day also start a business like Agasaro.”

Isimwe Noella (26), also farms pineapples with her parents and five brothers. The family supplies three tons of fruit to Agasaro every week to earn around Rwf1,500,000. Before they could only make Rwf200,000 to 300,000 at local markets:

“The quality of my crops has also improved because of the assistance and fertilisers which Agasaro provides us. Working with Agasaro has financially transformed our lives at home,” Noella says.

While Agasaro’s were increasing steadily, inadequate packaging equipment was limiting its ability to increase production. In 2017, a lack of packaging materials even started to impede sales growth. Agasaro and other Rwandan manufactures previously relied on imports from Kenya to obtain plastic packaging. But stringent new Kenyan legislation banned the use of manufacturing of certain types of plastic bags used for commercial and household packaging.

Isabelle Uzamukunda, the owner and managing director of Agasaro, approached GroFin for working capital to finance the purchase of new packaging machines to help address this shortage. As part of its business support offering, GroFin assisted Uzamukunda in the selection of appropriate packaging machines and helped her to review her business plan.

Uzamukunda says the financing and support she has received from GroFin has helped to increase Agasaro’s sales and staff complement:

“Before receiving GroFin’s support my monthly sales were never above Rwf20.2 million. Now my current turnover stands at Rwf29 to 30 million. I had 16 staff members, but now my team has grown to 26 employees.”

Ntwali Victor (34) is one of these new employees. Victor tried to support his wife and child by doing casual or temporary jobs before he started working as an electrician at Agasaro a year ago. His wife couldn’t find permanent work either but earning a steady salary has helped to change that too:

“I paid for my wife to complete technical school and now she has a small sewing business. I can pay my rent on time, pay for medical services and send my child to a better school. We were two jobless people at home – now one of us has a permanent job and the other a business to run.”

GroFin has also assisted the business with networking and market identification and Uzamukunda says this has helped Agasaro to qualify for grants from different donors:

“I have the contract for a $199,000 grant for the construction of a modern plant in-hand and signed. This is all because of GroFin’s financial support and business advice which have taken me to another level as a businesswoman.”

GroFin Ghana honored at 14th Ghana-Africa Business Awards

GroFin won its second Gold Award in the Financial Services (SME Development) category Ghana-Africa Business Awards. GroFin has been operating in Ghana since 2010 and previously received the same award in 2015.

GroFin received both awards in recognition of its outstanding contribution to the development of Ghana, within the context of the New Partnership for Africa’s Development (NEPAD). GroFin has invested over $30 million (USD) in 66 small and medium-sized businesses in the country. This investment allowed these businesses to sustain 3,224 jobs and to create 411 new direct jobs.  The Ghana-Africa Business Awards, now in their 14th year, are organised under the auspices of the Ghanaian Ministry of Foreign Affairs and Regional Integration.

Samuel Sedegah, Investment Executive at GroFin Ghana, says the company is honored by this acknowledgment of its efforts to develop small and medium-sized businesses in the country.

“SMEs are a key driver of job creation and economic growth in developing economies, and already contribute over 70% of Ghana’s GDP. However, the potential of many of these businesses remains constrained by a lack of access to finance.”

Indeed, according to the latest World Bank Enterprise Survey, 49% of Ghanaian firms cite access to finance as their greatest obstacle. Sedegah explains that GroFin not only provides entrepreneurs with appropriate financing, but also with continuous business support to grow, and ensure their success.

“SMEs are prone to very high failure rates. GroFin helps entrepreneurs to overcome this by offering a combination of finance and expert advice and business support that improves their ability to manage the complexity of a growing business.”

GroFin’s 2015 Ghana-Africa Business Awards was also in the GOLD category, after the organizer’s held consultations with the Ghana Export Promotion Center, Ghana Investment Promotion Center, Ghana Free Zones Board and Ghana Tourism Authority.

About GroFin

GroFin is a pioneering private development financial institution specialising in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East. We combine medium term loan capital and specialised business support to grow SGBs in emerging markets. By successfully combining medium term loans and specialised business support delivered through our local offices, we have invested in over 700 SMEs and sustained over 88,150 jobs across a wide spectrum of business activities within the 15 countries in Africa and Middle East that we operate in. GroFin has its headquarters located in Mauritius.

Media enquiries: Samuel Sedegah, samuels@grofin.com