Sage Grey Finance, a leading financial services provider in Nigeria, has announced plans to significantly increase its lending to the manufacturing sector. The company aims to raise the share of manufacturing in its lending portfolio from the current 15-20% to 60%. This move is part of efforts to channel more capital into Nigeria's real sector and support economic development. The Managing Director and Chief Executive Officer, Temitope Runsewe, disclosed this at the organisation's 10th anniversary celebration in Lagos.
The proposed expansion reflects the strategic importance of manufacturing to Nigeria's economic development. Runsewe stated that the company is exploring ways of providing longer-term capital to businesses in the sector. This is necessary to enable businesses to overcome some of the challenges they face, including currency devaluation, high electricity costs, and shortages of skilled manpower. The company believes that longer-term capital will help businesses in the sector to expand their operations and contribute to economic growth.
Sage Grey Finance is also considering a value-chain financing model that would extend funding beyond manufacturers to businesses providing essential inputs and services to them. This model will enable businesses providing power, security, intermediate products, and other essential services to manufacturers to access financing. Runsewe explained that this approach will help to address the constraints faced by manufacturers and support the growth of the sector.
The manufacturing-focused lending strategy forms part of Sage Grey Finance's broader expansion plans. The organisation is preparing to raise fresh capital through a stock market listing ahead of its proposed transition into a commercial bank. According to its 10th anniversary presentation, Sage Grey plans to list on the Nigerian Exchange and transition into a commercial bank by 2027. The company has a longer-term ambition of building a Tier 1 Nigerian bank.
As part of its sustainability and impact strategy, Sage Grey Finance has established a $10 million circular economy impact fund with partners. The fund will support businesses operating in areas including recycling, clean energy, and green manufacturing. This initiative demonstrates the company's commitment to supporting sustainable economic growth and development.
Runsewe stated that the company's strategy for its next phase will focus on consolidating, optimising, and scaling the businesses it has built during its first decade. This will involve building on the successes of the past 10 years and exploring new opportunities for growth and development. The company's 10th anniversary celebration was attended by stakeholders in the financial services sector, diplomats, business leaders, clients, and partners.
The event provided an opportunity for Sage Grey Finance to showcase its achievements and outline its plans for the future. The company's commitment to supporting the growth of the manufacturing sector and contributing to economic development is clear. With its expanded lending portfolio and new initiatives, Sage Grey Finance is well-positioned to make a positive impact on the Nigerian economy.
Key points
- Sage Grey Finance aims to increase its lending to the manufacturing sector to 60% of its portfolio.
- The company is exploring a value-chain financing model to support businesses providing essential inputs and services to manufacturers.
- Sage Grey Finance plans to list on the Nigerian Exchange and transition into a commercial bank by 2027.
