Sage Grey Targets 60% Manufacturing Share in Lending Portfolio

Sage Grey Finance is aiming to significantly increase the portion of its lending portfolio dedicated to manufacturing, with the goal of raising it from the current 15-20 percent to as high as 60 percent. This move is part of the company's efforts to channel more capital into Nigeria's real sector, which is of strategic importance to the nation's economic development.

Sage Grey CEO Temitope Runsewe announced this at the organization's 10th anniversary celebration, attended by various stakeholders in the financial services sector. The proposed expansion would involve the company exploring ways of providing longer-term capital to businesses in the manufacturing sector and even extending funding to businesses that provide essential inputs and services to them through a value-chain financing model.

Runsewe highlighted the challenges currently faced by manufacturers, such as currency devaluation, high electricity costs, shortages of skilled manpower, inadequate infrastructure, and insecurity. These constraints make it crucial for businesses in the manufacturing sector to access longer-term capital to overcome these hurdles and expand their operations.

The manufacturing-focused lending strategy is part of Sage Grey Finance's broader expansion plans, which include a stock market listing and transitioning into a commercial bank by 2027. The company also aims to build a Tier 1 Nigerian bank in the long term. Additionally, as part of its sustainability and impact strategy, Sage Grey has established a $10 million circular economy impact fund to support businesses operating in areas such as recycling, clean energy, and green manufacturing.