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Stop panicking, and start transforming instead

Applying the five lean manufacturing principles.

Measures to curb the spread of COVID-19 has not only directly impacted the ability of businesses to operate, but has infected them with something even more deadly: uncertainty.

Small and medium-sized businesses are the most vulnerable segment to uncertainty, and manufacturing has been one of the worst-affected industries. Although it can be difficult to stay positive during uncertain times, those business that hope to survive must look beyond the current crisis and focus on those things that do remain in their control. “SMEs should use this time to build more efficient and effective organisations. One way to do this is to apply the five lean manufacturing principles,” says Marten Stavast, Senior Industry Expert in Manufacturing at GroFin, an impact-driven SME financier. He reminds manufacturers of these principles:

1. Define value

Any entrepreneur will agree that the customer always comes first. Lean manufacturing takes this idea beyond customer relations to also put the customer first in the production process. The true value of any product or service is defined by what your customers are willing to pay for it. Your product may seem valuable to you because of the time and resources that went into creating, but its value is determined from the point of view of the customer.

Lean manufacturing begins by determining the needs of the customer. Interviews, surveys, demographic information, and web analytics are some of the tools you can use to determine what your customers want and at what price they can afford it.

2. Map your value stream

Once you know what your customers want and value, you can map your value stream. Use your customer’s value as a starting point and identify all the activities that help to create this value. The goal is to ensure that every activity in your production process adds value to your customer and can be delivered at the price point they want. If an activity does not add value to your customer, it is a waste. If you cut out any unnecessary processes that do not add value, you can reduce production cost while ensuring your customers still get what they want.

3. Create flow

Now that only necessary and value-adding activities remain in your value stream, you should ensure that each step flows smoothly to the next. Interruption and delays in production are no different to waste. A delay is more than just a bottleneck when one production step waits on another – it is any step that takes longer than it has to. You can improve the flow of value-adding activities by breaking down every step of the process and reconfiguring it as efficiently as possible, levelling out the workload, and training your employees to be multi-skilled and adaptive.

4. Establish pull

Stock sitting on your shelves or raw materials piled up in your warehouse is one of the biggest forms of waste in any production system and often places a big drag on cashflow for smaller businesses. This is even more true in the current environment.

A pull-based production system means that you only produce products based on the needs of your customers and only at the time and the quantities needed. Strive to limit your inventory and work in process items to only the materials needed for a smooth workflow. This approach requires ensuring some flexibility in your production process and the current environment, it might just give you the edge as a small business.

Stock sitting on your shelves or raw materials piled up in your warehouse is one of the biggest forms of waste in any production system, and often places a big drag on cashflow for smaller businesses.

5. Pursue perfection

The final step in implementing lean manufacturing is by far the most important. Lean thinking should not be a once-off exercise that you complete now, while times are tough. It should become part of the culture of your company in such a way that every employee strives toward perfection and constantly getting better at meeting customer needs and reducing waste. This will not only set your business apart during times when customers are themselves under financial pressure but also when things improve.

Mend your nets

When this pandemic and the uncertainty it brings have passed, those business owners who spent this time wisely will have built businesses that can remain competitive by increasing the value they deliver to customers. There is a saying that goes “when fishermen cannot go to sea, they mend their nets.” Now is the time for business owners to do this same by using their time to transform their businesses, not just to survive the current storm, but also to look to the future.

This article was first published in the August/September 2020 issue of Your Business Magazine.

GroFin wins the ‘SME Financier’ category in AGF Awards

The Awards were presented at a gala dinner hosted in Sandton, Johannesburg last week and attended by nearly 100 professionals from the asset management and private equity industry. The AGF Awards are decided by an independent panel of esteemed industry leaders and experts and the winners are determined solely on merit.

“GroFin is honoured to be recognised for our work in developing SMEs in Africa through our model of providing our clients support beyond finance. We are proud to contribute to increasing direct investment into Africa through financing businesses that deliver real impact alongside positive returns,” – Guido Boysen, CEO of GroFin

Africa Global Funds (AGF) is a leading monthly publication which provides coverage and analysis of the African asset management, investment and private equity industries. AGF created the Awards to honour and generate both industry and public recognition of the outstanding efforts and accomplishments of Fund Service Providers covering Africa.

This was the first year that a category for fund managers in the SME space was added to the list of awards presented. GroFin was shortlisted for this award alongside two strong competitors namely, Spartan SME Finance and Barak Fund Management. Other award categories recognised firms such as Investec, Standard Bank, Maitland, Webber Wentzel, and BNY Mellon for excellence in providing specialised fund administration, brokering, banking, legal and advisory services in the African asset management space.

“GroFin is honoured to be recognised for our work in developing SMEs in Africa through our model of providing our clients support beyond finance. We are proud to contribute to increasing direct investment into Africa through financing businesses that deliver real impact alongside positive returns,” said Guido Boysen, CEO of GroFin.

GroFin was established in 2004 to provide a unique solution of finance and support to SMEs previously doomed to the ‘missing middle’ because they are considered too big for micro-finance and too small for private equity funds. Since its inception in 2004, GroFin has invested nearly $340 million in over 700 SMEs in Africa, as well as the Middle East.

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. 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 90 000 jobs across a wide spectrum of business activities within the 15 countries in Africa and Middle East that we operate in. GroFin is headquartered in Mauritius.

Media Enquiries:
Marketing & Communications Department
Email: media@grofin.com

GroFin receives high accolade at Nigerian Healthcare Excellence Awards

GroFin Nigeria won the Outstanding Healthcare Project-Friendly Financial Institution of the Year Award at the Nigerian Healthcare Excellence Awards (NHEA) 2019.

The award recognises banks and financial institutions that have created an inclusive innovative financing model for healthcare entrepreneurs or healthcare SMEs across the value chain. NHEA is an initiative of Global Health Project and Resources in Partnership with Anadach group and celebrates organisations who have contributed immensely to the growth of the Nigerian healthcare sector.

Felix Ezeh, Investment Executive at GroFin Nigeria, felt honoured that GroFin was recognised for this prestigious award:

“By this award, the public that voted for GroFin made a statement that they are appreciative of the work we are doing.  We heard them.  Our promise to them is that this award will only spur us to do more.”

NHEA’s recognition aims to stimulate quality improvement and innovation in the Nigerian health sector leading to improved service delivery & management of key health issues and the capacity of individuals to influence and set new performance standards in Nigeria & beyond.

GroFin’s unique model of combining finance and business support helps healthcare entrepreneurs and SMEs overcome challenges and improves their ability to manage the complexity of a growing business. GroFin has dedicated healthcare investment and business support expertise, both through its in-house healthcare “industry experts” and through formal partnerships with specialist healthcare partners like Medical Credit Fund (MCF).

GroFin’s healthcare portfolio in Africa and the Middle East consists of investments made in 41 SMEs, representing a total investment of US$ 16M, across the value chain of businesses in the healthcare industry including hospitals, clinics, dental facilities, maternal care and pharmaceutical outlets. Business support offered by GroFin includes a business planning framework, quality management systems, cash flow advice, medical waste management systems as well as operations and management expertise. And through its investments, GroFin has over 277,280 patients able to obtain medical care services annually and has helped sustain a total of 3,950 healthcare related jobs.

The NHEA 2019 brought further good news as a GroFin Nigeria exited client Healthplus Limited won Retailer of the Year Award, further helping to cement GroFin’s impact in the health sector of Nigeria.

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: Felix Ezeh, felix@grofin.com

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

GroFin honoured in Global SME Finance Awards

GroFin’s innovative SME development model of combining access to finance, business support and market-linkages has received further recognition through an Honourable Mention at this year’s Global SME Finance Awards.

The GroFin Small and Growing Businesses Fund (“SGB Fund”) recently received this accolade in the “Product Innovation of the Year” category. The Global SME Finance Awards recognize outstanding achievements of financial institutions and fintech companies, in delivering exceptional products and services to their SME clients and are endorsed by the Global Partnership for Financial Inclusion (GPFI).

GroFin receives Honorable Mention at Global SME Finance Awards 2018

Guido Boysen, CEO, says GroFin is honoured by this recognition which affirms the merit of its approach to developing small and medium-sized businesses.

“GroFin has demonstrated how the typically very high fail rate among SMEs can be mitigated and through a model that is scalable. This means that GroFin’s approach can be replicated to make an even greater contribution to the development of emerging economies.”

Finance provided through the SGB Fund, coupled with business support interventions, have ensured that the SGB Fund has a viability rate of 86%, compared to a failure rate of 70- 90% for SMEs in emerging economies.

Guido Boysen says the SGB Fund is also regarded as innovative in its design to not only achieve socio-economic impact objectives, but also to generate sustainable returns for its investors.

“The ability to generate financial returns attracts investors and greatly strengthens the sustainability of the fund. This is crucial to any developmental project or fund which hopes to make a lasting impact.”

Earlier this year GroFin won the ICAEW and A4S Finance for the Future Awards, in the Building Sustainable Financial Products category, as well as the 2018 Islamic Economy Award in the ‘SME Development’ category.

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.

About the GroFin Small and Growing Businesses Fund (“SGB Fund”)

Established in 2014 and based on GroFin’s then decade-long experience in supporting entrepreneurs across emerging economies in Africa, the GroFin Small and Growing Businesses Fund (“SGB Fund”) focuses on SGBs that are typically neglected by traditional financiers and even conventional SME funds – the SME “missing middle” segment.

The Fund’s unique model integrates access to finance, business development skills and market linkages to ensure job creation at scale and facilitates the provision of vital services to low income households. It focuses on high impact sectors including education, healthcare, agribusiness, manufacturing and key services and further envelop women and youth as beneficiaries of its model.

GroFin wins Islamic Economy Awards 2018 in SME Development category

GroFin is pleased to announce that it has won the 2018 Islamic Economy Award in the ‘SME Development’ category. The winners were announced at the Awards ceremony held in Dubai this Wednesday 30 October 2018.

The Islamic Economy Award was launched in 2013 under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and directed by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.

The Islamic Economy Award is managed independently by Thomson Reuters and is adjudicated by an esteemed judges’ panel based on formal, established criteria.

GroFin was represented by its Regional Investment Director for the Middle East and North Africa region, Mohamed Hawary, who collected the award on behalf of the company.

“This award is testimony to the efforts made by GroFin to ensure its products are accessible to one and all. We, at GroFin, are determined to provide our clients with financing that respects the customs and beliefs of our clients,” says Mohamed Hawary.

GroFin wins 2018 Islamic Economy Awards in the category of 'SME Development'

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, presents award to Mohamed Hawary, GroFin Regional Investment Director for the Middle East and North Africa region

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, presents award to Mohamed Hawary, GroFin Regional Investment Director for the Middle East and North Africa region

The Islamic Economy Award is held every year and has the following categories; Money and Finance, Media, Food and Health, Waqf and Endowments, SME Development, Islamic Economy Knowledge Infrastructure, Islamic Arts, Hospitality and Tourism, and the Lifetime Achievement Award.

This is the second prestigious award for GroFin this year as it also won Finance for the Future Awards in the Building Sustainable Financial Products category. Finance for the Future Awards is run by ICAEW and A4S along with their partner Deloitte.

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.

GroFin wins its category at the 2018 Finance for the Future Awards

GroFin is pleased to announce that it is the winner of the Finance for the Future Awards, in the Building Sustainable Financial Products category.

Finance for the Future Awards is run by ICAEW (Institute of Chartered Accountants in England and Wales) and A4S (The Prince’s Accounting for Sustainability Project) along with their partner Deloitte. The prestigious awards saw nominees, in the different categories, such as HSBC (UK), Coca Cola and Standard Bank Group amongst others.

With the Building Sustainable Financial Products category, the nominees competing with GroFin were the highly-recognised and highly-respected nominees, namely, Abundance Investment (UK), Environmental Finance (UK), QBE (Australia) and Yes Bank (India).

The award ceremony took place in London on the 16th of October and GroFin was represented by its CFO William Morkel who collected the award on behalf of the company.

“I would like to dedicate this award to our employees, as well as our clients and investors. It is testimony to the collective effort we undertake here at GroFin to bring about positive social and financial impact in the lives of the people we serve,” says Guido Boysen, GroFin CEO.

GroFin wins 2018 Finance for the Future Awards

Finance for the Future Awards is held every year and has six categories namely; Embedding an integrated approach, Innovative project, Communicating integrated thinking, Investing and financing, Building sustainable financial products and Driving change through education, training and academia.

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:

Sharmila Kowlessur (Chief Marketing Officer – GroFin) on +230 452 9156 , or email sharmila@grofin.com

Notes to editors:

ICAEW connects over 147,000 chartered accountants worldwide, providing this community of professionals with the power to build and sustain strong economies.

Training, developing and supporting accountants throughout their career, we ensure that they have the expertise and values to meet the needs of tomorrow’s businesses.

Our profession is right at the heart of the decisions that will define the future, and we contribute by sharing our knowledge, insight and capabilities with others. That way, we can be sure that we are building robust, accountable and fair economies across the globe.

ICAEW is a member of Chartered Accountants Worldwide (CAW), which brings together 11 chartered accountancy bodies, representing over 1.6m members and students globally.

The Prince’s Accounting for Sustainability Project (A4S)

The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004. Our aim is to make sustainable decision making business as usual.

We work with the finance and accounting community to:

  • Inspire finance leaders to adopt sustainable and resilient business models
  • Transform financial decision making to enable an integrated approach, reflective of the opportunities and risks posed by environmental and social issues
  • Scale up action across the global finance and accounting community

A4S has three global networks: the Chief Financial Officers Leadership Network, a group of CFOs from leading organizations seeking to transform finance and accounting; the Accounting Bodies Network whose members comprise approximately two thirds of the world’s accountants; and, the Asset Owners Network which brings together Pension Fund Chairs to integrate sustainability into investment.

www.accountingforsustainability.org

Deloitte

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NWE LLP, which is a member firm of DTTL, and is among the UK’s leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.