Recognising their common goals, the Development Bank of Angola (BDA) has joined forces with Norsad Capital, a provider of private credit to businesses in a growth stage. This partnership will be formalized at a ceremonial event at the Hotel Palmeiras, in Talatona – Luanda, at 11 am on June 29, 2023. The Parties will sign a Memorandum of Understanding which will set out the terms of the partnership.

According to Kenny Nwosu, CEO of Norsad Capital, “in essence, our agreement means that we will introduce each other to potential transactions so that we can maximise the deal flows. We each have our own expertise and funding models so, 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 the lives of people on the continent of Africa. “We recognise that we share common objectives in terms of private sector development in Angola, and this is what drives our decision to collaborate with each other,” explains Patrícia de Almeida, CEO of the BDA.

As a public financial institution, the BDA’s major focus is promoting ongoing economic growth through sustainable development in the country, which includes raising the country’s competitiveness on the world stage.  Its initiatives promote the well-being of the Angolan population by granting credit to the economy, boosting the business sector, creating jobs and increasing sustainable livelihood opportunities.

In terms of the agreement, the two Parties will share contacts for potential business; assist each other when putting together sizable deals; and share an investment opportunity should the amount required exceed the limits available for funding by each party.

A particularly important element of the co-operation is that the Parties will support each other in working to further promote the private sector’s role in growing the economy. “The government of Angola recognises that the country should diversify its economy and become less dependent on oil production. This is where the greatest opportunities lie for us as funders – the SME sector can make a major contribution to the diversification of the economy. In addition to the various benefits, it will be helpful for us to have a partner on the ground in Angola who has local knowledge and can provide us with insights, for instance, about a business located in the country that we are considering doing business with”, Nwosu says.

Identifying itself as an impact investor with a particular focus on the United Nations Sustainable Development Goals (SDGs), Norsad Capital aims to be a thematic impact investor that selects investments which clearly contribute to solving social and environmental challenges. This objective aligns with the overarching aim of the BDA: to contribute to the improvement of the quality of life of Angolans. Many of the sectors that are of importance to Norsad Capital are equally significant for the BDA, such as contributing to growth of the agriculture, livestock, manufacturing and other productive sectors, including  the expansion of the renewable energy sector through solar and hydroelectric initiatives, improving logistics and transport infrastructure, and the pressing need for financial inclusion.

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

The Development Bank of Namibia  (DBN) has signed a Memorandum Of Understanding (MoU) with Norsad Capital, an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies. In collaboration with DBN, this partnership is set to increase various investment mandates in Namibia, including  affordable housing and the financial sector through injections into banking, insurance, microfinance, and investment funds.

Among other resources, Namibia is rich in renewable energy sources, particularly solar and wind power. DBN’s move to join forces with Norsad will open up possibilities for increased investments in renewable energy projects which could see Namibia’s dependence on imported energy decrease while creating a positive impact for communities.

“There are currently an array of investment opportunities in Namibia, including the renewable energy sector, infrastructure, agriculture and agribusiness, to name a few. We look forward to being part of Namibia’s growth potential through more investment in these areas which form part of the four themes and four sectors of opportunity that we’ve identified for expansion across Africa,” says Kenny Nwosu, CEO at Norsad Capital.

Development Bank of Namibia Chief Executive Officer Martin Inkumbi says the institution views finance for small and medium enterprises (SMEs) as vital to the economy and that’s why the DBN SME Centre structures finance for SMEs depending on the complexity of the project.

The Bank works with applicants to develop a deep understanding of business models, project proposals, and enterprise milestones so that it can develop viable financing terms that take sustainability, risk and growth into account.

“A partnership of this nature will allow us to further develop and support SMEs and other businesses with the appropriate products such as business loans and commercial property development finance,” adds Inkumbi.

Sustainability forms an integral part of the business models of both entities.

The DBN has prioritised sustainable business practices since its inception. This entails providing responsible financing while gaining the best possible financial returns and contributing to improved outcomes for clients, the environment, and society at large.

This is in line with Norsad Capital’s impact investment focus on the United Nations’ Sustainable Development Goals. Norsad Capital aspires to be a thematic impact investor selecting investments that clearly contribute to addressing social and environmental concerns while working towards their goal of impacting 100 million lives by 2030.

With a shared focus on contributing to sustainability and social development, this partnership will have a positive impact on the lives of the people of Namibia.

-ENDS-

 About Norsad Capital

Norsad Capital is an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies that deliver desirable social and environmental impact. With a  track record spanning over 33 years, Norsad Capital has invested over USD 500 million in more than 150 companies across the continent.

About The  Development Bank of Namibia

The Development Bank of Namibia is mandated to contribute to the development of Namibia and the socio-economic wellbeing of its citizens.

Norsad Capital, an impact investor and private credit provider, has structured a ZAR100m revolving debt facility to Lakutshona Housing Company (Pty) Ltd, a well-established property company in the Western Cape, South Africa, that owns, develops and manages property.

Access to adequate and affordable housing in South Africa continues to be a persistent challenge faced by the country’s populace. Despite the government efforts to provide subsidised housing to the low-income population, as of 2021 there was an estimated housing shortage of 3.7 million units, with a continued growth rate of 178,000 year on year. An estimated 12.5 million people, 12.7% of households in South Africa, reside in informal dwellings, suggesting that a significant proportion of the population resides in living conditions characterised by poor housing facilities and lack of access to basic services such as water and sanitation. The growing housing shortages and inadequacies also contribute to economic losses as the workforce’s living conditions negatively contribute to their well-being, health and access to essential services and amenities.

Carol-Jean Harward, Investment Director at Norsad Capital and transaction lead said: “This funding presents a unique opportunity for Norsad, in partnership with Lakutshona Housing Company, to provide affordable housing to the South African middle-income demographic. The investment is aligned with Norsad sector focus on soft and social infrastructure and strategic lever of deepening investment into South Africa. It also ensures the realisation of SDG11 on ensuring access to adequate, safe, and affordable housing for all.

Kobus Le Roux, Owner, and Founder said: “The transaction happened at a time when there is significant demand for affordable housing in Western Cape, especially the Paarl region. The funding will be used for the development of affordable residential property in Paarl which will eventually consist of 441 residential units delivered through a phased approach. Lakutshona is very pleased to partner with Norsad, a reputable impact investor, on this project. By investing in affordable housing projects, Norsad plays a critical role which serves basic human needs of access to decent shelter which is crucial for wellbeing and prosperity of individuals and society at large.”

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 33 years, Norsad Capital has invested in 150+ companies across the continent. For more information:  www.norsadcapital.com

About Lakutshona

Lakutshona Housing Company (Pty) Ltd is a well-established Company that owns, develops, and manages property, as well as providing Housing solutions in South Africa.

Originally established to develop a housing model for the assistance of Kumba Iron Ore employees to obtain accommodation and promote home ownership that suited their various affordability levels by offering Rental Units and promoting home ownership, has since grown, and developed steadily in the last more than 18 years.

Today Lakutshona Housing Company (Pty) Ltd manages their own portfolio of 320+ houses in the Northern Cape as well as Sectional Title rental units in the Winelands town of Paarl in the Western Cape. Additionally, the business also manages and maintains a Kumba Iron Ore portfolio of more than 900 units on behalf of the Mining Company.

Here’s a look into Norsad Capital’s 2022 Impact Report (https://lnkd.in/g-ZeR_-Y) Launch that took place in April.

Our 2022 Impact Report Launch took place on Wednesday 26 April at The Leonardo in Sandton, Johannesburg. We are proud to showcase the positive impact made possible by our commitment to sustainable development in Africa, as we make our way to transforming 100 million African lives by 2030.

The event marked a significant milestone in our journey towards making evermore meaningful impact investments across the continent. We are grateful for the continued support of our partners and stakeholders who are key to our continued success.

MOU signing aimed at supporting Zambian businesses and improving social impact

 

[Lusaka] 28 March 2023 – The Development Bank of Zambia (DBZ) today signed a Memorandum of Understanding with Norsad Capital, an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies. The move promises to bolster direct investment into Zambia by supporting businesses that are committed to positive social impact.

Zambia, one of the youngest countries in the world based on median age, is undergoing a rapid demographic shift; this presents a unique opportunity for economic growth. The MOU solidifies this possibility, as growth initiatives are a key focus of Norsad Capital.

Speaking at the MoU signing ceremony at Lusaka’s Hilton Garden Inn, the DBZ’s Acting Managing Director, Maybin Muyawala said this cooperation agreement couldn’t come at a better time. “We are confident that this move will bring a much-needed injection into Zambia’s economic landscape.”

The Zambian economy rebounded in 2021, with GDP expanding by 4.6%, after contracting by 2.8% in 2020 due to various macroeconomic events. The MoU aims to contribute to the growth of the Zambian economy.

“Ultimately, both our institutions are focused on providing much-needed capital to businesses which can be used to promote economic growth and improve the lives of the people in Zambia and Africa at large,” added Muyawala.

According to the terms of the partnership, the parties will coordinate on large deals, share contacts for possible business, and split an investment opportunity if the amount needed exceeds the financing capacity available from each side.

Norsad Capital, which identifies itself as an impact investor with a focus on the Sustainable Development Goals (SDGs) of the United Nations, aspires to be a thematic impact investor that selects investments that clearly contribute to addressing social and environmental concerns. This is consistent with the DBZ’s objective to address inadequate and expensive access to capital for investment and to eliminate micro-level structural rigidities that impede public and private investment development, productivity, wealth generation, and job creation.

“Both our organisations share the same passion for ensuring that African businesses can thrive and succeed despite prevailing circumstances. Our agreement, therefore, ensures that we can, in partnership, simultaneously maximise deal flow and social impact in Zambia,” said Kenny Nwosu, CEO at Norsad Capital.

A particularly important element of the MoU is that both parties will support each other in working to further promote the private sector’s role in growing the Zambian economy as highlighted by Nwosu who adds, “We wish to encourage good corporate governance to promote sustainable private sector investment in Zambia.”

Nwosu also added that this also serves as an opportunity for Norsad Capital to plough back into its birthplace. “It’s a full circle moment, really. Norsad was first established right here in Zambia in 1990, as a collaboration between the Nordic and Southern African Development Community (SADC) governments, and it operated as a multilateral agency based in Lusaka, Zambia.

 In 2011, we transformed into a limited liability company, Norsad Finance, incorporated in Botswana and accredited by the International Financial Services Centre. And here we are, in 2022, having rebranded to Norsad Capital in line with our strategy to scale and deepen our impact throughout the continent.”

-ENDS- 

About Norsad Capital

Norsad Capital is an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies that deliver desirable social and environmental impact. With a track record spanning over 33 years, Norsad Capital has invested over USD 500 million in more than 150 companies across the continent. 

About The Development Bank of Zambia

The Development Bank of Zambia (DBZ) is a Development Finance Institution (DFI) mandated through the Development Bank of Zambia Act, to provide long, medium and short term finance and equity investment, provide technical assistance and advisory services for the purpose of promoting economic development. DBZ has invested over USD300 million in over 350 companies since inception.

Norsad Capital (“Norsad”) acknowledges that climate change is the largest threat currently facing humankind and the environment at
large. Norsad subscribes to the science and the data as presented by the International Panel on Climate Change (IPCC), which indicates that manmade greenhouse gases (GHG) are responsible for trapping additional heat within the planetary system leading to an increase in the average global temperatures. [  Read more ]

Lesotho PostBank joins forces with provider of private credit Norsad Capital to create new opportunities for businesses in Lesotho

07/02/2023

Recognising their common goals, the Lesotho PostBank (LPB) has joined forces with Norsad Capital, a provider of private credit to businesses in a growth stage. This partnership was announced at a ceremonial event in Maseru, Lesotho, on 17 February 2023.

LPB was set up by the Government of Lesotho with the goal of providing financial services to the many unbanked and underbanked Basotho in the country.  To overcome the negative impact of financial exclusion, the Bank targets both rural and urban parts of the country for the expansion of its services.

Both LPB and Norsad Capital focus on providing much-needed capital to businesses, which can be used to promote economic growth and improve the lives of people on the continent of Africa.  “We recognise that we share common objectives in terms of private sector development in Lesotho, and this is what drives our decision to collaborate with each other,” explains Molefi Leqhaoe, the Managing Director of LPB.

The parties have signed a Memorandum of Understanding which sets out the terms of the partnership. According to Kenny Nwosu, CEO of Norsad Capital, “In line with Norsad’s growth strategy of deepening investments in SADC, the MOU paves the way for Norsad to increase its investment activities in Lesotho through leveraging off the local presence of LPB”.

In terms of the agreement, the two parties will share contacts for potential business; assist each other when putting together sizable deals; and share an investment opportunity should the amount required exceed the limits available for funding by each party.

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

From a regional perspective, the deal fits in perfectly with the Norsad Capital focus on the Southern African Development Community (SADC), since Lesotho is one of the 16 states that make up this region. “This is a region most under-served by financial institutions, yet there is enormous business opportunity in the area,” says Nwosu, explaining the reason for the company’s focus.

Identifying itself as an impact investor with a particular focus on the United Nations Sustainable Development Goals (SDGs), Norsad Capital aims to be a thematic impact investor that selects investments which clearly contribute to solving social and environmental challenges. This objective aligns with the overarching aim of the LPB: to improve the quality of life of the citizens of Lesotho. Many of the sectors that are of importance to Norsad Capital are equally significant for the LPB, namely:  improving access to finance and allowing for greater financial inclusion, agriculture, promoting infrastructure development, and tourism and hospitality.

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

Norsad Capital Funds Growth in the Assisted Living and Frail Care Sector

12/12/2022

Norsad Capital, an impact investor and private creditor provider, has structured a ZAR 70 million debt facility to Manor Health Services for the development of their assisted living and frail care operations located within the Helderberg Manor Retirement Village in Somerset West, South Africa.

Assisted living and frail care completes the ecosystem of a retirement village and future planning of mature lifestyle residents. This segment offers life rights with specialised and focused care thereby further supporting families to provide suitable and immediate care for their elderly family members. This sector achieves Sustainable Development Goals 3, Good Health and Wellbeing, ensuring healthy lives and promoting well-being at all ages is essential to sustainable development. Health is a fundamental human right and a key indicator of sustainable development.

Zubair Suliman, Investment Director at Norsad Capital and transaction lead said: “Norsad Capital has been actively supporting growth in the healthcare space and this funding presents another unique opportunity, in partnership with Manor Health Services, to expand in this segment. Assisted living and frail care offers the dedicated care to the elderly and vulnerable mature residents seeking quality and swift healthcare services. Norsad Capital’s funding commitment played a catalytic role in raising a local funding line for the construction of the 50 assisted living units and the 40 bed modern frail care centre. ”

Hein Ehlers the founder and CEO of Devmark Property Group said: “We are extremely pleased with the conclusion of our first transaction with Norsad Capital. Devmark through its subsidiary, Manor Health Services, took a strategic decision to invest in the health sector and specifically in assisted and frail care. Norsad Capital immediately understood the strategic nature and growth potential of the health services in this sector. We found their approach refreshingly different to most other financial institutions and we look forward to building a long[1]term relationship with them.”

About Norsad Capital

Norsad Capital is an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies that deliver desirable social and environmental impact. With a track record spanning over 32 years, Norsad Capital has invested over USD 500 million in more than 150 companies across the continent.

For more information: www.norsadcapital.com

About Manor Health Services

Manor Health Services’ assisted living and frail care facility is located within the Helderberg Manor Retirement Village, an existing 257- unit retirement village, situated in Somerset West, Western Cape, South Africa.

For more information: www.devmark.co.za

A joint partnership encompassing $400mn in assets under management focused on African small and medium enterprises.

Norsad Capital and TLG Capital announced today the beginning of a partnership to cement the market-leading private credit platform for medium-sized companies across sub-Saharan Africa (SSA). [ Read more ]

Congratulations to Norsad Capital for winning the ESG Investment – Social Leadership of the Year Award at Reuters Events: Responsible Business Awards 2022! #RBawards22 #impactinvesting