Cape Town, South Africa
Business advisory firm Creative CFO has recently launched Creative Growth Capital, its very own investment vehicle to meet the high demand for flexible funding solutions that are better geared toward SME business models. Creative CFO has coupled its longstanding expertise in working with SMEs with making flexible investment capital available to SMEs to unlock sustainable growth opportunities and consequently create a positive and measurable impact in more communities in South Africa.
Creative Growth Capital will offer growth capital to SMEs by way of tailored deal structures using an array of investment instruments including debt, equity and combinations of these instruments to craft bespoke deal terms for these businesses.
“SMEs are largely underserved by capital markets, specifically in emerging market territories. Traditional financiers lack the flexibility and risk appetite to provide the right type of capital to support SMEs. SMEs are the backbone of the economy and their success should be prioritized to ensure a well-functioning local economy.” (Creative Growth Capital)
Anchored by an investment from one of the largest institutional investors in Africa, Creative Growth Capital has recently made a debt investment into an artisanal ice cream company based in Cape Town. The loan will enable the business to grow its production capacity and expand its delivery and distribution channels to a broader network of customers, both important prerequisites for scale.
Recognizing that private investment is essential for small business growth and job creation, the USAID Southern Africa Regional Economic Growth Office has supported Creative CFO with the establishment of Creative Growth Capital. USAID’s support of these vehicles through its INVEST initiative reflects a growing consensus that private investment is critical to inclusive, sustainable development. In support of the shared commitment to invest for impact, all of Creative Growth Capital’s investments will embody targeted social development objectives, including but not limited to scaling women and minority-owned- businesses, expanding local business operations and supporting job creation. Creative Growth Capital, with USAID support, will continue to fund SME growth within the region, bridging the demand gap between small and medium-sized enterprises and affordable, flexible financing.
“Creative Growth Capital aims to uplift entrepreneurs and support businesses that make a real contribution to society by creating jobs, up-skilling their employees, and fostering a thriving and inclusive SME ecosystem. We view investing in SMEs as being the most-impactful mechanism with which we can improve the livelihoods of others and inspire the greatest change in our country and eventually abroad.” (Creative Growth Capital)
About Creative CFO
Creative Growth Capital is part of Creative CFO , an international business advisory firm that, over the past nine years, has been advancing its vision to create a world where more SMEs succeed.