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.

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

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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.

18/09/2022

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.

Omnichannel payment systems to expand on the African continent

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Despite progress in recent years, formal financial services remain beyond the reach of many people in Africa. And, even when these services become available, the rate of usage is low because of a range of factors, including the costs and the security of transacting.

It has been shown that mobile money and other non-traditional forms of financial services are key enablers for financial inclusion in Africa – They have disrupted traditional financial services by providing better ways to transfer funds than using cash. With mobile and other digital payment systems, customers in Sub-Saharan Africa are gaining access to business loans, savings, and other services that a traditional bank would otherwise provide. The greater availability of financial services has an incredible impact on many aspects of life in Africa and plays a role in alleviating poverty for communities.

One player in the omnichannel payment field helping to make the sort of impact that the continent needs is MFS Africa. It is the largest hub for omnichannel payments in Africa, which connects over 400 million mobile money users on the continent. Impacting largely the unbanked and the underbanked demographic on the continent, MFS Africa connects mobile network operators, money transfer organisations, cross-border payments remittance firms, financial service providers, and worldwide merchants to millions of mobile wallets on the continent.

“Our services focus on creating more possibilities for Africans needing to make payments, to carry out money transfers, and to remit funds to others,” explains Dare Okoudjou, Founder and CEO of MFS Africa.    “Merchants, banks, mobile operators, and mobile money transfer firms have come to rely on our compliant and cost-effectiveness service, and this is why the MFS Africa network has grown so extensively across the continent of Africa.”

MFS Africa has achieved a significant presence in Sub-Saharan Africa, being connected today to over 60% of all mobile money wallets in the region. Understanding the need for connecting mobile money to the rest of the world, MFS Africa recently broadened its bank and fintech base offering through the acquisition of US fintech GTP. This will enable the company to tokenize mobile money space and connect to traditional card scheme ecosystems such VISA and Mastercard. Okoudjou explains that “Our guiding principle is that African consumers and businesses should be able to pay for anything, both offline and online. We’ve always known that in order to really eliminate borders, we needed to connect mobile money to the rest of the world; card networks seem to be the most effective means to do so.”

The firm works in over 35 countries in Africa but believes that there are still more areas that it can provide its services to. It is against this background that MFS Africa negotiated a deal for additional funding from Norsad Capital, an impact investor offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa.

Kenny Nwosu, CEO at Norsad Capital, says: “The Norsad Capital term facility will assist MFS Africa to break into Nigeria, a market that is key to MFS Africa’s growth strategy. With its extensive population and capacity to do business, Nigeria accounts for the largest movement of money around the continent, and our funding is important as it comes at a point in the company’s development where it is poised for significant growth.”

According to Nwosu, “This is a very attractive investment for Norsad as MFS Africa has a strong market position, and this market share puts MFS Africa in a position to be at the forefront of financial inclusion and digital payments in Africa.”

There is also great synergy between the two service providers since MFS Africa is aligned with Norsad’s Purpose of Building a Better Africa. As Okoudjou of MFS Africa explains: “MFS aims to decrease the cost of money remittances to Africa. We currently connect mobile money systems to one another and to money transfer organisations, banks, and other financial institutions, enabling money remittances to and from mobile money accounts. Our move into the Nigerian market will allow us to extend our footprint extensively on the African continent, bringing much-needed financial services to thousands more people.”

In line with Norsad impact objectives, MFS Africa is aligned to Norsad’s Purpose of Building a better Africa. Mobile money has disrupted traditional financial services by providing a better way to transfer funds instead of cash. With mobile payments, customers in Sub-Sharan Africa are gaining access to business loans, savings, and other services as they would get in a bank. Mobile money has incredible impact on many aspects of life in Africa and plays a role in alleviating poverty for communities.

About Norsad Capital

Norsad Capital is an impact investor providing tailor-made 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. For more information:  www.norsadcapital.com 

About MFS Africa

MFS Africa is the largest digital payments hub in Africa, with over 400 million Mobile Money users connected. The Company works closely with Mobile Network Operators (“MNOs”), Money Transfer Organisations (“MTOs”) and financial institutions to bring simple and relevant financial services to un-banked and under-banked clients in Africa: www.mfsafrica.com

Norsad Capital supports the growth of Platform Capital with a USD10 million term 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 provided a USD10 million long-term debt facility to Platform Capital (Platform).   Platform Capital’s portfolio companies have more than 3,000 employees operating across 15 countries. Platform has a staff complement of over 70 employees, with offices in Ghana, Kenya, Nigeria, South Africa, Uganda, USA and Mexico.

The continent also has circa 70 million MSMEs, however, the perennial challenge has been transitioning these MSMEs into companies that are institutionalised with systems, processes, teams, and products that are able to attract capital for growth and scale.

Platform Capital exists to solve these two issues: beneficiation and the development and nurturing of scalable entrepreneurial ventures. This is done through the company’s two-pronged business model; i) Investments – where the company owns and operates assets and invests (directly and indirectly) into entrepreneurs and ii) Advisory and portfolio management services where Platform provides services, relationships, and infrastructure to entrepreneurs to scale their businesses.

Oteng Sebonego, Investment Director at Norsad Capital and transaction lead said: “We are excited to partner with Platform Capital which is trying to solve one of the key issues faced by SMEs and early-stage companies in Africa; market access/growth and funding.

Dr Akintoye Akindele Founder and Executive Chairman: Platform Capital Group said: “In Africa, MSMEs provide an estimated 80% of jobs across the continent, representing an important driver of economic growth. Sub-Saharan Africa alone has 44 million micro, small, and medium enterprises, almost all of which are micro. Platform has indicated that with Norsad’s funding we will be able to assist 1,000 companies in high-growth sectors that are solving Africa and global problems over the next 5 to 6 years. Furthermore, the funding will enable Platform to roll out additional campuses & programs across Africa to identify, educate, train and impact 100,000 entrepreneurs over the next 5 to 6 years to build the Africa of the future. Norsad’s investment in Platform, will help Norsad achieve its goal to positively impact the lives of 100 million Africans by 2030.

About Norsad Capital

Norsad Capital is an impact investor providing tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa. With a track record spanning over 30 years, Norsad Capital has invested in 150+ companies across Africa. For more information:  www.norsadcapital.com

About Platform Capital

Platform Capital is a growth market focused, sector agnostic, principal investment, and advisory firm. We deploy patient, value accretive capital alongside international and local value investors to create champion businesses with the potential for regional or global scale. Platform also provides end-to-end bespoke Corporate Finance & Capital Markets advisory services. What makes us different is our obsession with changing the African narrative.

For more information: www.theplatformcapital.com

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 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

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.