Norsad Capital Funds the Expansion of RH Bophelo With a ZAR 100 million Stretched Debt Facility

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Norsad Capital, an impact investor offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa, has extended a ZAR 100 million stretched debt facility to RH Bophelo Limited, for the expansion of its hospitals and clinics across South Africa. RH Bophelo is a healthcare investment holding company investing in the healthcare sector with a focus on low- and middle-income earners.

Accessible and quality healthcare is an economic and social necessity. In emerging markets this need is further evident with poor access and only basic healthcare in a number of rural and peri-urban areas. RH Bophelo seeks to support the healthcare sector and reduce the burden on public services by providing affordable private healthcare to the underserved population. This positively contributes to the success of the UN Sustainable Development Goals.

RH Bophelo is a Johannesburg Stock Exchange listed company currently owning a network of hospitals and clinics across South Africa. Furthermore, through its hospital consulting, commissioning and management subsidiary, RH Bophelo manages additional facilities for third parties across eight provinces in South Africa. Their investments expand to pharmacies, emergency services, and healthcare related insurance products with primary target towards the underserve market in South Africa.

Zubair Suliman, Investment Director at Norsad Capital and transaction lead said: “Norsad has identified healthcare as a growth area under our focus sector theme of soft & social infrastructure. Partnering with RH Bophelo in their growth plans is truly inspiring especially as RH Bophelo provides a blend of unique and accessible healthcare services. With this structured funding, Norsad will play a catalytic role in unlocking access to healthcare services for previously underserved communities and furthermore support a customer-focused group intent on promoting transparency, competition and providing better value for their patients.”

Quinton Zunga, CEO of RH Bophelo said: “We are delighted to have found a partner in Norsad matching our passion and vision to make a tangible difference in the provision of healthcare in a socially and economically sustainable way. As a growth-oriented firm, speed and flexibility in execution is of paramount importance to us and Norsad is the ideal counterparty. We look forward to a fruitful partnership as we embark on our pan-African mission.”

About Norsad Capital

Norsad Capital is an impact investor providing tailormade debt solutions to mid-market growth companies in Sub-Saharan Africa. With a track record spanning over 32 years, Norsad Capital has invested over USD 500 million in more than 150 companies across the Africa.

About RH Bophelo

RH Bophelo is an investment company in set up to invest in the healthcare services value chain across South Africa. The company is engaged specifically in operational infrastructure, health insurance, private hospital infrastructure, pharmaceuticals, retail, and distribution. RH Bophelo is dual listed on the Johannesburg Stock Exchange and the Rwanda Stock Exchange. For more information: www.rhbophelo.co.za

Norsad Capital signs Memorandum of Understanding (MoU) with the Infrastructure Development Bank of Zimbabwe (IDBZ)

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Norsad Capital signs Memorandum of Understanding (MoU) with the Infrastructure Development Bank of Zimbabwe (IDBZ) to create new opportunities for Zimbabwean businesses.

Recognising their common goals, the Infrastructure Development Bank of Zimbabwe (IDBZ) has joined forces with Norsad Capital, a provider of private credit to scalable businesses focused on growth. This partnership was announced at a ceremonial event in Harare, Zimbabwe, on 13 September 2022.

The parties have signed an MoU which sets out the terms of the partnership. According to Kenny Nwosu, CEO of Norsad Capital, “Our agreement means that we will introduce each other to potential transactions and seek to collaborate and share risk. We each have our own expertise and funding models, and together we can provide far more in-depth insights when putting together a deal.”

Both financial institutions focus on providing much-needed capital to businesses, which can be used to promote economic growth and improve livelihoods. “We recognise that we share common objectives in terms of private sector development in Zimbabwe, and this is what drives our decision to collaborate with each other,” explains Zondo Sakala, the CEO of the IDBZ.

In terms of the agreement, the two parties will share contacts for potential business financing in Zimbabwe; assist each other when putting together sizable deals; and share investment opportunities of appropriate thresholds that meet the funding requirements of each party.

“In addition to the various benefits, it will be helpful for us to have a partner on the ground in Zimbabwe who has local knowledge and can provide us with insights on businesses located in the country that we are considering doing business with,” Nwosu says.

From a regional perspective, the deal fits the Norsad Capital focus on the Southern African Development Community (SADC), where Zimbabwe is located. “This is a region and market under-served by financial institutions, yet there are enormous business opportunities in the area,” says Nwosu, explaining the reason for the company’s focus.

Identifying itself as an impact investor aligned to the United Nations Sustainable Development Goals (SDGs), Norsad Capital has a thematic approach and selects investments that clearly contribute to solving social and environmental challenges. This objective aligns with the overarching aim of the IDBZ: to improve the quality of life of Zimbabweans. Many of the sectors that are of importance to Norsad Capital are equally significant for the IDBZ, such as the transition to clean renewable energy and the pressing need for financial inclusion.

Norsad Capital, previously known as Norsad Finance, was first established in 1990. Norsad offers tailor-made debt solutions to profitable growth companies in Africa and has a goal to impact 100 million lives over the next decade in line with its strategy to scale and deepen its impact in Africa.

All in all, this partnership augurs well for the future of the economy of Zimbabwe. Likely to make more capital available to growth-stage businesses in the country, this relationship will promote economic growth in the region.

We Support The Growth Of Bridge Taxi Finance

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Norsad Capital, an impact investor offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa, has provided a ZAR 150 million long-term debt facility to Bridge Taxi Finance to support the growth of new, affordable, and safe minibus taxi vehicles in South Africa. Bridge Taxi Finance is one of the leading non-banking lenders to the South African minibus taxi industry.

Transportation is a key element towards soft & social infrastructure. In South Africa, minibus taxis are the principal form of transport and one of the leading economic levers, accounting for over 15 million trips per day nationwide resulting in over 70% of public transport passengers using this mode of transport. Majority of commuters are typically unable to afford vehicles and live in distant or remote areas inaccessible by trunk-route public transport, for these commuters’ minibus taxis are the primary source of transport and an essential need for their livelihoods.

Bridge Taxi Finance is a wholly owned subsidiary of Mokoro Holdings. Mokoro Holdings consists of vertically integrated companies focused on the exclusive importation of minibus vehicles, impact vehicle finance, day-to-day tracking with client management, vehicle repairs and services centre. Whilst growing the overall public transport fleet in the country, the new vehicles financed by Bridge Taxi Finance will replace older, fragile, and more polluting vehicles, in-line with South Africa’s taxi recapitalisation programme.

Bridge Taxi Finance plays a vital role in supporting public transport and increasing access for disadvantaged groups to grow their contribution in the economy. Furthermore, this funding will empower new entrepreneurs to create true personal growth by allowing these clients to acquire and run their own vehicles.

Zubair Suliman, Investment Director at Norsad Capital and transaction lead said: “We are excited to partner with Bridge Taxi Finance in supporting the growth of one of the main pillars of the South African economy. Norsad Capital’s impact funding is earmarked towards further growth of the new taxi vehicle fleet resulting in modern, safer, and dependable transport for the millions of commuters daily. We can calculate this funding will impact a minimum 215,000 lives directly bringing us closer to both Norsad’s objective to impact 100 million lives in Africa and our purpose of building a better Africa.”

Thomas Cutten, Executive: Debt Capital Markets at Bridge Taxi said: “Norsad has been a pleasure to work with, showing incredible dynamism and responsiveness. Partnering with Norsad we will be able to further service this dynamic and systemically important aspect of the African economy that is not only an industry in and of itself, but facilitates industry, commerce, and education. We look forward to working with Norsad as we continue to grow and facilitate the provision of reliable, safe, environmentally responsible and cost effective transport to the South African commuting public”

About Norsad Capital

Norsad Capital is an impact investor providing tailormade debt solutions to mid-market growth companies in Sub-Saharan Africa. With a track record spanning over 32 years, Norsad Capital has invested in 150+ companies across the continent.

About Bridge Taxi Finance

Bridge Taxi commenced its operations in 2013 and has evolved to become one of the dominant financiers of minibus taxi vehicles in South Africa. It is one of the leading minibus taxi financiers deploying an integrated approach by covering vehicle importation, trading, financing, servicing, and repairs. For more information visit www.bridgetaxifinance.co.za

Ongos Valley Development Limited

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Norsad, an impact investor providing tailor-made debt solutions to mid-market growth companies in sub–Saharan Africa, has provided a revolving facility to Ongos Valley Development, a transformative property development situated in the North West corridor of the city of Windhoek, with the intent of building 28,000 affordable residential housing units over the next 15 to 20 years. The promoters intend to deliver the project in several phases, with Phase 1 contributing 4,500 housing units to the Namibian Housing market over the next 5 years. The proposed Norsad funding is ZAR 110 million, which will go toward Phase 1.

Ongos Valley aims at addressing the critical housing shortage in Namibia by providing affordable housing solutions through direct purchases or a rent-to-own model that has been initiated. The Rent-To-Own Model was born from the need to provide alternative financing for individuals that do not qualify for a traditional home loan, but will be able to do so with a financial institution in the medium term. The model is an innovative and affordable pathway that allows clients to become entry-level homeowners.

The housing sector in Namibia ranks high on the governments development agenda, due to the existing acute deficit of affordable serviced land and housing.

Phase 1 of Ongos Valley is expected to create 14,000 job opportunities over the 5-year implementation period. These will be 4,140 full time jobs and 9,860-part time jobs. The project intends to provide Namibians with access to quality and affordable housing solutions while improving their overall standard of living.

Justin Nthala who is Investment Principal at Norsad said “Norsad is excited to be involved with Ongos Valley and help kick start the development that aims to be one of Africa’s first Green and Smart cities with a focus on sustainable energy utilization from renewable sources. Bulk infrastructure for Phase 1, in partnership with the Windhoek municipality, is in its final stages of installation and the first housing units are now being constructed.”

Soft and social infrastructure development is a key sector for Norsad.  The development also links to a number of the United Nations Sustainable Development Goals such as Clean Water and Sanitation, Affordable and Clean Energy and Sustainable Cities and Communities. The investment is also in line with Norsad’s impact themes on Sustainable livelihood (employment creation and empowering local entrepreneurs) and Climate and clean energy (the project is expected to be Edge complaint).

About Norsad

For over 30 years, Norsad has invested in African businesses that clearly have positive impact and we have invested over USD450 million in more than 150 companies in various sectors in the region. More information www.norsadfinance.com

About Ongos

Ongos Valley is jointly owned by Fullbright Investment (80%) and Bonsec Investments (20%), with sponsors that have extensive experience in property development and management.

Norsad’s Maiden Investment in the DRC

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Norsad, an impact investor providing tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa has made its maiden investment in the Democratic Republic of Congo (DRC) through an investment of USD 5.0 million by way of a term credit facility to Monishop Sarl, an FMCG retailer operating in Kinshasa, DRC.

The investment alongside other funders including XSML managed Africa Rivers Fund II, BGFI Bank and other local banks, is targeted towards the development of a 12-storey mixed-use retail development in the relatively under-served area of Gombe, Kinshasa (Monishop II). This follows the successful development and operation of a similar retail complex anchored by Monishop Supermarket in the Kintambo Municipality of Kinshasa in 2011. The DRC is the 4th most populous country in Africa and Kinshasa has a population of over 17 million people highlighting not only the market potential but also the need for more formalised retail in the city and country.

The Food Value Chain (FVC) which ranges from “farm to table” is one of the key focus sectors for Norsad’s investments as it is aligned to the UN Sustainable Development Goal (SDG) on Zero Hunger. The investment is also in line with Norsad’s impact themes on Sustainable livelihood (employment creation and empowering local entrepreneurs) and Gender Equality (Woman owned business as well as female employees within similar establishments).

Alice Zulu who is Investment Principal at Norsad said “We are delighted to be making our first investment in the DRC in the over 30-year period Norsad has been investing in the region. In Monishop, Norsad has partnered with strong sponsors with a depth of experience as well as other financial partners that have knowledge and networks within the central African region.”

About Norsad

Norsad Finance is an impact investor providing tailormade debt solutions to mid-market growth companies in Sub Saharan Africa but predominately Southern Africa. The company has an over 30-year track record having invested in over 150+ companies. More information www.norsadfinance.com

About Monishop SARL

Monishop was founded in 2011 and currently operates a mini retail complex, anchored by the Monishop Supermarket in the Kintambo Municipality of Kinshasa. The supermarket sells both local and imported Fast Moving Consumer Goods (FMCG) products and also houses key banking tenants.

Norsad invests in Nova Pioneer Education

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Norsad Finance Limited, an impact investor providing structured financing solutions to mid-market growth companies in Southern Africa, has provided a long-term debt facility to Nova Pioneer Education Group, a regional education group with a footprint in sub-Saharan Africa. The facility will help fund the expansion of some of its existing property sites to accommodate new learners.

Quality and affordable education is an important social infrastructure and hence partnering with a regional education group such as Nova Pioneer is a tremendous step in our journey towards achieving our purpose of building a better Africa. Quality education is a UN Sustainable Development Goal (SDG 4) as it is instrumental to reducing inequalities and poverty for future generations. Norsad endeavours to invest in companies and sectors that are aligned with the SDGs.

Nova Pioneer Education Group operates a total of 13 independent schools (Grade K to Grade 12) in South Africa and Kenya and has a total of 4,400 learners. Founded in 2014, the group intends to grow its footprint to the rest of sub Saharan Africa. Using its teaching methods that inculcate critical thinking and innovation, the schools’ academic model is based on students learning by creating and exploring, rather than memorizing and hence producing graduates ready for 21st century jobs. Other significant investors in Nova Pioneer include Toronto listed Fairfax Africa Holdings Corporation.

Chinezi Chijioke,  Founder and CEO of Nova Pioneer Education Group said: “The funding from Norsad contributes meaningfully to the ability of Nova Pioneer to deliver on its mission and we look forward to building a partnership with Norsad that delivers positive impact across Africa through education””

Oteng Sebonego, Investment Director at Norsad, lead in the transaction said: “We are delighted to partner with Nova Pioneer as an education platform which we would like to support in its regional growth and achieving its vision which is linked to our purpose of building a better Africa.”

About Norsad Finance

Norsad Finance is an impact investor offering bespoke stretch debt and mezzanine finance solutions to mid-market growth companies in Southern Africa. The firm has a 30-year track record of investing in Southern Africa and is backed by the Nordic Development Finance Institutions (namely Norfund, Finnfund, Swedfund and IFU) and SADC Developmental financial institutions.

Norsad provides ZAR 150 million to Grobank

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Norsad Finance Limited, an impact investor providing structured financing solutions to mid-market growth companies in Southern Africa, has availed a ZAR 150 million (circa. USD 10 million) medium-term facility to the South Africa specialised commercial agricultural bank, Grobank Limited. This facility is Norsad’s second investment in South Africa and further supports its diversification across the Southern Africa region.

Grobank Limited is a banking institution focusing on the full value-chain of the food and agriculture sector from farm to table. Grobank is wholly owned by GroCapital Holdings, a partnership between the agricultural group, AFGRI Group Holdings; the Toronto listed financial services holding company, Fairfax Africa Fund LLC and; the Government Employees’ Pension Fund. Grobank’s partnership with its shareholders has seen the bank evolve its offering to take advantage of their shared knowledge of business banking, the niche alliance banking offering and the food and agriculture industry.

Norsad’s investment is earmarked for expansion of the agricultural banking business, supporting Grobank’s strategy in the sector. As an impact investor, food security and financial inclusion are at the core of Norsad’s objectives. This is also aligned with the Southern African Development Community (SADC) Regional Indicative Strategic Development Plan (RISDP) on sustainable food security and the UN Sustainable Development Goal (SDG) on Zero Hunger. Integrated agriculture and financial institutions are amongst Norsad’s preferred sectors and Norsad Finance has a portfolio of investments within these sectors in other SADC countries including Angola, Botswana, eSwatini, Mauritius, Mozambique, Namibia, Zambia and Zimbabwe.

Meraki Capital acted as financial advisor and funding arranger to Grobank on the facility.  Meraki Capital has deep experience in advising financial institutions across the continent.

Bennie van Rooy, CEO of Grobank said: “Grobank is proud of its association with Norsad and honoured to partner with an institution that is equally passionate as we are about the food and agricultural space. We look forward to build and strengthen this partnership to ultimately benefit the sector and contribute to food security across the continent”

Marisa Meyer, Managing Director at Meraki Capital said: “In support of its food and business offering, this transaction strengthens Grobank’s ability to invest in the world’s largest and arguably its most important market, agriculture, especially with the renewed focus on food security, socio-economic progress and sustainability.”

Zubair Suliman, Investment Director at Norsad Finance, lead in the transaction said: “We are delighted to partner Grobank in their strategy to support the full value-chain of the food and agriculture sector. Agribusiness is one of the mainstays of the South African economy and this facility further strengthens food security and generates foreign income through exports.”

About Grobank

Grobank first entered the market in 1947, as the South African Bank of Athens, and today operates as a commercial specialist bank across every area of the food and agriculture sector value chain, whilst also offering an expanding range of capabilities and services to businesses outside of this sector. Grobank’s food, agriculture and business banking division coupled with Alliance Banking, enables Grobank to offer a holistic banking offering.  More information at www.grobank.co.za

About Meraki Capital

Meraki Capital is a pan African corporate finance firm offering advisory services and capital solutions across sub-Sahara Africa.  More information at www.merakicapital.co.za

About Norsad Finance

Norsad Finance is an impact investor offering bespoke stretch debt and mezzanine finance solutions to mid-market growth companies in Southern Africa. Norsad has a 30-year track record of investing in the Southern Africa region and is backed by Nordic Development Finance Institutions (namely Finnfund, IFU, Norfund and Swedfund) and regional financial institutions. More information at www.norsadfinance.com