Nomou initiative targets the creation of 15,000 sustainable jobs in the region
Supporting partners include JEDCO, UKAid, JPMorgan Chase Foundation and Royal Dutch Shell
United Arab Emirates, Dubai: Shell Foundation and GroFin, the specialist SME development financier, today announced a new initiative, Nomou, to provide critical business support and patient capital to SMEs across the MENA region.
Nomou aims to catalyse the SME sector in the MENA region as a major driver of sustainable job creation, by providing extensive business support and a targeted that exceeds USD 100million in growth finance to start-up and growing SMEs. The objective is to create over 15,000 sustainable jobs, improve 195,000 livelihoods, and delivering business support to more than 600 sustainable SMEs across Jordan, Egypt, Iraq, Saudi Arabia and Oman.
With MENA currently experiencing the highest regional unemployment in the world (at over 10%), the World Bank* estimates that Arab countries need to create 100 million new jobs by 2020 to ensure sustainable social development and economic growth. The SME sector can be a major engine of sustainable job creation but, as recent research from Hearts & Mind Strategies** shows, the market in MENA is critically under-served with entrepreneurs lacking the vital resources that they need to succeed: access to flexible patient capital, access to business skills and training, and linkages to supply chains.
Nomou seeks to address these market barriers by providing risk capital through loans ranging from USD 100,000 to USD 2 million, based on the viability of an SME's business plan as opposed to the availability of collateral, and extensive pre- and post-investment business support to help entrepreneurs develop and execute effective growth strategies.
The initiative has already attracted the interest of a range of investors, donors and development agencies, with active partners now including Royal Dutch Shell, Jordan Enterprise Development Corporation, UK's Department for International Development, JP Morgan Chase Foundation and UKAid. The support provided by the JPMorgan Chase Foundation will be directed towards business skills and training for entrepreneurs in Saudi Arabia. Royal Dutch Shell will provide additional support by identifying potential suppliers and contractors within its supply chains who can benefit from support offered by Nomou.
Nomou is based on GroFin and Shell Foundation's 10-year track record of providing vital and much-needed support to SMEs in Africa, where they have already created more than 14,000 jobs, provided almost 6,100 SMEs with business support, and generated USD 1.67 billion of economic impact. The partners are now bringing this proven integrated solution to the under-served SME sector in the MENA region.
Shell Foundation, the independent charity, has provided strategic support and grant funding to enable GroFin to establish Nomou, build operational capacity across the MENA region and recruit teams of local investment professionals - and to anchor country-level SME funds and a dedicated Business Support Facility.
Quotes from the press conference:
Chris West, Director, Shell Foundation:
"Across the world, it is very difficult for entrepreneurs to access both the business skills and patient capital they require to start-up or grow their own business. Through our long-term partnership with GroFin, we have demonstrated that such an integrated solution can play a hugely important role in developing the SME sector, and complement other initiatives. We are pleased and excited to launch Nomou, and believe it will contribute significantly to wider efforts to promote job creation and economic growth in MENA."
Jurie Willemse, CEO, GroFin:
"The MENA region heavily depends on human capital as its primary driver of economic growth, and the entrepreneurs in this region, by nature, are innovative and entrepreneurial with positive cultural reinforcement of risk-taking and enterprise. The passion that the entrepreneurs have is our main driver to assist them in nurturing their entrepreneurial spirit, and boost the employment and socio-economic environment in the MENA region."
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About GroFin
GroFin, the pioneering SME development financier, drives job creation and socio-economic empowerment by assisting entrepreneurs and enterprises achieve success through access to appropriate finance, tailored business support, as well as market linkages. GroFin invests responsibly in viable businesses, providing unique and tailor made solutions, and empowering entrepreneurs through sharing skills and transferring business knowledge. This unique combination assists entrepreneurs maximize profitability and encourages sustainability and success. Established in 1998, GroFin operates in 12 countries, with on-ground local teams in 14 offices spanning Africa and the Middle East, and enjoys the support of 24 leading international investors, development partners, corporate foundations and family foundations with over USD 320M in committed funds and funds under management. www.grofin.com
About Shell Foundation
Shell Foundation is an independent UK-registered charity, established by Shell Group in 2000, that catalyzes enterprise-based solutions to global poverty and environmental challenges. By applying business thinking, models and disciplines Shell Foundation has co-created several strategic partners to address major global issues such as sustainable job creation through small enterprise, urban mobility, ethical trade, access to energy and tackling indoor air pollution that are now delivering large-scale impact. www.shellfoundation.org
For further information, please contact:
Sweety Darwish, PR & Communications, GroFin
Telephone: +971 4 375 2424, Email: sweety@grofin.com
www.grofin.com ; www.nomou-mena.com
© Press Release 2013
