Lagos: Sage Grey Finance Ltd. has advocated manufacturing value-chain financing as a strategy to strengthen businesses and support growth. The company also announced plans to obtain a commercial banking licence and list on the Nigerian Exchange Group (NGX). Mr Temitope Runsewe, Managing Director of Sage Grey Finance Ltd., said this at the company’s 10th anniversary news conference.
According to News Agency of Nigeria, Runsewe explained that value-chain financing allows financial institutions to support entire business ecosystems, including suppliers, distributors, and other partners, not just individual firms. He highlighted the company’s ‘captive gateway strategy’ which targets businesses linked to many others, enabling it to finance multiple companies within a chain. This approach aims to help businesses focus on their core operations while complementary companies provide specialized services such as power, security, logistics, and other critical infrastructure.
He added that the model was particularly relevant to Nigeria, where businesses often had to provide several services themselves due to insufficient infrastructure and support systems. Runsewe emphasized the benefits for manufacturers partnering with specialized providers of power, security, logistics, and intermediate products instead of managing every aspect of their operations.
Runsewe called for increased access to long-term capital for manufacturers, citing high energy costs, inadequate infrastructure, security challenges, shortage of skilled personnel, and increased cost of imported inputs as constraints facing the sector. However, he noted that currency depreciation, while increasing the cost of imported inputs, could make Nigerian products more competitive internationally.
Discussing growth plans, Runsewe detailed the company’s intention to upgrade its finance company licence to a commercial banking licence, enabling it to provide more services and mobilize greater capital for stakeholders. He also mentioned plans to access the capital market through an NGX listing, viewing the stock exchange as an optimal place to raise capital. Runsewe stated that raising capital locally would create a more sustainable structure for the company’s expansion.
Over its first decade, Sage Grey has focused on building its people, processes, governance, and infrastructure to support its next phase of growth. Currently, the company operates from four locations, including three in Lagos, with substantial investments in technology and customer support infrastructure. Initially starting in 2016 as a corporate finance advisory firm, Sage Grey has evolved into a diversified group with interests in financial services, technology, investment management, energy services, and manufacturing.
Runsewe highlighted the company’s commitment to supporting Micro, Small and Medium Enterprises (MSMEs) and its partnership with the Bank of Industry on Federal Government SME funds, providing financing at nine percent. The company has also established a circular economy impact fund with partners for businesses in Nigeria’s circular economy space. Institutionalizing its Environmental, Social and Governance (ESG) activities at the board level, Sage Grey plans to establish a foundation for coordinating its social impact initiatives.
Runsewe concluded by stating that the company’s first 10 years focused on building a strong foundation while the next decade will be directed towards greater scale, increased impact, acquiring a commercial banking licence, and expanding access to capital.