It’s been a while since we last had open loans from Growth Africa on the MYC4 platform. So what have they been up to in the last couple of months?
Growth Africa has been busy re-strategising.
“We have been asking ourselves if what we do for our entrepreneurs is enough”, CEO Johnni Kjelsgaard explains. “What they need at least as much as access to capital is knowledge, exposure, a guiding hand and a critical friend, some thought-provoking events, managerial and practical tools, networking, and structured experience sharing with their peers. Initially we thought this could be done alongside providing loans – but upon testing this idea, we realised that the interests of those two sides of the business are misaligned.”
Growth Africa has therefore made the decision to exit the lending business to instead focus on enterprise development for SMEs. An appropriate exit plan for the current outstanding loan portfolio is in the process of being established.
Growth Africa and MYC4 have agreed to have an on-going dialogue to see if there could be a strategic fit again in the future.