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.

Emerging Markets Initiative of the Year Award

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Norsad Finance, a leading impact investor, has been awarded the Emerging Markets Initiative of the Year 2021 award by the Principles for Responsible Investment (PRI), a world leading proponent of responsible investment. PRI is a United Nations-supported international network of investors, and it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

This announcement comes after Norsad was shortlisted by the judging panel in two categories: ‘Real-world impact initiative of the year’ and ‘Emerging markets initiative of the year’. Norsad subsequently won the ‘Emerging Markets Initiative of the Year 2021’.

The prestigious award recognises a PRI signatory who seeks to achieve impact by setting intentional impact strategy and targets to shape sustainability outcomes, using a range of levers to achieve impact, and being able to demonstrate how it is monitoring progress towards achieving its impact goals.

SETTING REAL-WORLD OUTCOME TARGETS

“The principal objective of Norsad is to contribute to private sector development in our markets, by making funding available to enterprises that are financially, socially, and environmentally sustainable and which create jobs with decent working conditions, adopt good governance practices, and assist economic growth and poverty alleviation,” says Kenny Nwosu, CEO of Norsad.

Norsad’s core purpose is to “Build a Better Africa” which it believes will result in a more prosperous continent with larger and more stable markets that encourage innovation and trade. It does so by investing in sustainable and profitable businesses in key markets. Norsad’s approach gives preference to companies that:

  • Support sustainable growth and job creation;
  • Diversify and strengthen local economies;
  • Contribute to sustainable infrastructure growth and industry 
development; and
  • Achieve impact in line with the Sustainable Development 
Goals (SDGs) and Norsad impact objectives.

USING A RANGE OF LEVERS TO ACHIEVE IMPACT

“To fulfil our commitment to sustainable growth, we integrate the assessment of social and environmental risks, impacts, and opportunities, into all our business processes,” says Nwosu.

Norsad requires all investee companies and financial services providers to comply, or commit to comply, within an agreed timeframe with the sustainability criteria outlined in Norsad’s Social and Environmental (S&E) Sustainability Policy.

A prerequisite for Norsad financing is that clients comply with local S&E laws, and partner investee companies are required to comply with international principles and standards when applicable, such as IFC Performance Standards and The World Bank Group Environmental, Health and Safety Guidelines.

TRACKING PERFORMANCE AGAINST SUSTAINABILITY OUTCOME TARGETS

Norsad continuously monitors investments through close engagement with partner investee companies. Annual surveys are conducted, and the results are shared in annual impact reports.

As part of its ‘open-door’ policy and close engagement, Norsad offers regular ESG support and training to its partner investee companies. During the COVID-19 pandemic, partner investee companies were provided with various best practice resources regarding ways to deal with and navigate the pandemic. This included webinars, training, regular check-ins, and assistance from shareholders. As a result, partner investee companies were better equipped to respond to the COVID-19 pandemic and have been more resilient to the impact.

As a signatory to the PRI, Norsad encourages its partner investee companies to adopt sustainability principles and to align themselves with the SDGs, “as we believe that incorporating ESG aspects into daily business operations assists in developing sustainable businesses, fostering partnerships between companies, their employees, and other stakeholders,” says Mr Nwosu.

‘’This win is a true testament to our purpose of ‘Building a better Africa.’”

Norsad: Best Impact Investor Africa 2020

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Norsad celebrated its 30th anniversary, reflecting a legacy of purpose-driven work alongside like-minded partners for the co-creation of a more resilient and sustainable Africa. Norsad’s purpose is to build a better Africa. The company provides tailored long-term financing solutions of between USD5m and USD10m to companies that are profit-oriented and contribute to the SDG’s in the region.

The company is backed by a balanced mix of Nordic and African institutional investors. Norsad’s international shareholders — European Development Finance Institutions: Finnfund, IFU, Norfund, and Swedfund — are ahead of the curve in ESG and responsible investing, and Norsad has benefitted from their industry knowledge and mentorship. Norsad’s African shareholders provide strong support in commercially viable regional projects with desirable ESG impacts. Norsad has provided total financing in excess of $400m to over 140 businesses and projects across 12 Southern Africa countries. Norsad invests in impact projects — focused on clean and renewable energy, food and agribusiness, education, financial accessibility, and inclusion — and tracks such impact. In 2019, companies financed by Norsad employed more than 11,000 people, 30 percent of which were women and 14 percent youth.

Norsad is a signatory of the UN-supported Principles for Responsible Investment (UNPRI) and reports its impact in line with PRI reporting requirements. In the 2020 PRI reporting and assessment cycle, Norsad outperformed peers in all categories and achieved the highest possible rating (A+) for strategy and governance. CFI.co also declared Norsad Finance as the worthy winner of the 2020 award for Best Impact Investor (Africa).

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’.

Norsad – Specialist Investor of the Year 2020

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We are proud to announce that in line with our mission of being “the premier provider of customised longer-term risk capital to Southern African companies and financial services providers that are financially, socially and environmentally sustainable,” Norsad has been recognised at the Private Equity Africa Awards 2020, as the winner of the Specialist Investor of the Year under the Regional and Specialist Investors category.

Click to here to download/view award certificate.

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 contributes P1 million to Covid-19 Relief

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Norsad Finance acknowledges the significant impact of the Covid-19 pandemic on all our lives and businesses and the on-going collective efforts and initiatives in combating the crisis. This collective fight has aligned many across our markets, who are making a difference in the fight against Covid-19 with notable mentions of all first responders, healthcare and other essential workers.

To support these efforts, Norsad will extend support through direct and indirect contributions towards addressing the impact of Covid-19 in our markets. We have extended contributions to the Botswana Covid-19 Relief Fund as well as additional funding for other pandemic related initiatives and support for vulnerable groups in society. In addition to increased Corporate Social Responsibility initiatives, Norsad is providing enhanced ESG support and sharing best practices and related information with our investee companies and facility repayment relief measures.

Norsad Chief Executive Officer, Mr Kenny Nwosu, said, “As an impact investor, Norsad takes an active interest in supporting the communities where we operate. In line with our purpose of Building a better Africa, we are deeply committed to supporting not only our existing clients through this crisis, but to offer our services to viable new clients as we emerge from these challenges. In this regard, Norsad remains open for business with our employees fully operational from the safety of their homes”.

Norsad Finance is an impact investor that provides long-term risk capital to sustainable mid-market growth companies across the Southern African (SADC) region.

Further information on www.norsadfinance.com

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 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