By Modupe Gbadeyanka
Federal Government has revealed plans to rally about N2.5 billion annual as equity investment in start-ups and early stage SMEs through qualified fund managers under a co-investment model.
The fund would be disbursed under its YouWiN! Connect scheme.
YouWiN! Connect is an initiative of the Federal Ministry of Finance (FMF) which aims to support young entrepreneurs as they PLAN, START and GROW their businesses.
It also seeks to promote entrepreneurship as a viable career option for young Nigerians which in turn, will create jobs and wealth.
The Federal Government of Nigeria intends that additional impact of this scheme will include social inclusion, job creation, youth empowerment and improved human capital because it believes that Small and Medium Enterprises (SMEs) are engines of growth to stimulate and sustain economic recovery, thereby making the strengthening of small-scale businesses & the promotion of industrialisation, priorities for economic recovery.
Minister of Finance, Mrs Kemi Adeosun, stated that, “The Federal Government has a renewed focus on key economic sectors in line with the Economic Recovery and Growth Plan, with an emphasis on SME led growth in agriculture, energy, technology, manufacturing, industry and key services.”
She further explained that, “The revival of these sectors, coupled with increased investment in other sectors, less reliance on foreign exchange for intermediate goods, raw materials and greater export orientation, will improve macroeconomic conditions, restore growth in the short term, help to create jobs and bring about structural change.”
Fund managers would be expected to demonstrate a strong track record in investing in and advising early stage SMEs, with a knowledge of diverse sectors and a clearly defined investment strategy.
This is to ensure that fund managers can actively and positively, contribute to improving business performance by bringing on-board their experiences and having skin in the game, by providing some of the required capital.