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.

Norsad Capital: Purpose led private credit provider in Africa

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As a freshly rebranded purpose led Norsad Capital relaunches in Africa, it details the importance of investing for sustainable development and impact on the continent.

Norsad Capital’s purpose is to build a better Africa by supporting the growth of profitable African companies through tailor-made debt finance solutions, enabling them to have substantial and ongoing social impact through the services they provide and the employment they create.

It is this reality that guides Norsad Capital, an impact investor that offers flexible debt financing solutions to profitable companies in Africa and has been doing so for over 30 years. Norsad is a pure-play private credit firm, which has invested over USD500 million in more than 150 companies in various sectors in Africa.

“Our partners and stakeholders have always been, and will remain, critical to delivery. We go into the future, and all the potential and challenges it holds, focused on unlocking new opportunities across Africa and enabling aligned businesses to realise and optimise their potential and vision,” says the Norsad CEO, Mr Kenny Nwosu

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We Have Rebranded

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We are pleased to unveil our new brand identity.

The revised and refreshed Norsad brand aligns with our objective of powering growth across sub-Saharan Africa by providing tailor-made debt solutions to companies that are financially, socially and environmentally sustainable. We have identified markets for expansion, and we embark on our growth strategy confident that we will make a palpable and far-reaching difference to millions.

Over the next decade, Norsad Capital will be entrenched as a leading private capital provider servicing African businesses that prioritise sustainable social development.

Our purpose is to build a better Africa through providing capital to businesses and projects whose goals impact on sustainability as they do on profit. With the rebranding comes a renewed focus on capital provision for sustainable growth. Norsad Capital is looking to the future, unlocking new opportunities, leading by example and committed to the business model – that has partnerships and diversity at its core – that delivers exceptional results for the continent we are deeply invested in.

The new logo is simple and clean. The rebrand is a true demonstration of sustainable partnerships. It reflects the spirit of collaboration, embodied in the antecedent SADC and Nordic cooperation. The addition of the colour blue has a calmness to it and the branded ‘O’ shows dynamism yet is professional and simple. The new brand depicts the Norsad transformation and captures our essence of being a catalytic organisation that is committed to sustainability and impact.

You will experience our logo change in our digital and physical footprint overtime. Once again thank you for your continued support and we hope you like our new corporate brand and we look forward to your continued support in our journey.

Norsad’s Gender Statement

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At Norsad, we believe that gender equality is not only a fundamental human right, but a necessary foundation for sustainability and prosperity. As an impact investor and provider of private credit in Africa, we recognize the importance of gender lens investing in support of gender equality and contribution to the Sustainable Development Goals.

Gender inequality has been identified as a key constraint to growth and development, which if addressed in Africa, will contribute significantly to the social and economic advancement across the continent. This is in alignment with our purpose is to Build a Better Africa and Norsad is committed to investing its capital and support to unlock women’s potential as contributors, leaders and changemakers.

At Norsad, we strive to cultivate a diverse and inclusive workplace and have adopted a gender lens investing approach across our investments to ensure women consideration and benefit remain central in our impact. We intend to increase the number of women involved in our business ecosystem, either as employees, managers, business owners or board members.

As a commitment to gender equality, Norsad will:

  • Maintain and further integrate gender-lens investing considerations into our investment process.
  • Conduct a gap analysis of our direct business ecosystem to identify opportunities for engagement with partner companies on gender.
  • Support partner portfolio companies to become gender inclusive and encourage them to increase women’s representation across their leadership, their workforce and within their value chains.
  • Identify metrics and targets to assess and report on our progress towards gender lens investing and gender inclusivity in our partner portfolio companies.

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 Scores A+ in Strategy and Governance

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Norsad Scores A+ in Strategy and Governance

The Principles for Responsible Investment (UNPRI or PRI) is a United Nations supported international network and the world’s leading advocate supporting responsible investors. It has over 3,200 global signatories. The PRI annual reporting framework evaluates our Responsible Investing (RI) progress against best industry-standard framework, benchmarks our performance against peers and supports signatories on strengthening internal processes and building ESG capacity.

We are pleased to inform that in this year’s 2020 Assessment Report, Norsad Finance has been awarded the highest rating of A+ for our Strategy and Governance, and we have outperformed our peers in all reporting categories. Norsad has been investing for impact for over 30 years and this rating is authoritative testimony that as an impact investor, we are committed to incorporating ESG considerations and features into our investment process and throughout all our business activities.

This achievement is in line with our efforts to continually improve our commitment to ESG and advance our Impact strategy towards fulfillment of our massive transformative purpose of ‘Building a Better Africa’.

COVID-19: Norsad remains open for business

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We note the significant impact of the COVID-19 pandemic on our lives and businesses and in alignment with our purpose of building a better Africa, we continue to work with our clients and partners through these uncertain times.

These are challenging times and the well-being of our people is of utmost importance. Norsad Finance Limited has initiated resilience and response protocols aimed at protecting the health and safety of our staff and partners, as well as ensuring we continue to deliver services with minimal business interruptions. Hence, we have commenced the process of remote working for our staff and continue to engage our key suppliers to ensure there are no gaps in our services.

In context of the noted interventions, we maintain the usual opening hours and request that you please contact us via email, telephone or arrange virtual meetings. Direct contact details for all Norsad staff are accessible here and all our teams will continue to assist and offer available support to our clients and partners during this challenging period.

We will continue to monitor and evaluate the impact of COVID-19 across our markets and will adjust our risk measures and approach to any changing developments, and will update our website with any such changes.

Norsad Relocates to Botswana | Business News

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Norsad Finance has relocated to Botswana. After more than 20 years of operating in Lusaka, Zambia, the institution now operates from Gaborone’s new central business district not too far from the iconic I-towers building.

The move follows the transformation of the former multilateral entity, NORSAD Fund, which has been incorporated as a limited liability company in Botswana and is accredited to International Financial Services Centre (IFSC).

The Norsad Finance office in Lusaka was closed down at the end of December 2012.The investment professional team and office equipment was relocated to Gaborone during the Christmas break 2012. The new office opened its doors in the middle of January 2013.

As part of the growth strategy the company adopted in 2012, four additional Batswana investment professionals were recruited at the beginning of 2013.