The African Development Bank Group grants a $30 million loan to Norsad Capital to boost the private sector in Southern Africa.
The project is aligned with a number of priorities of the African Development Bank, including its “High-5” strategic priorities
The Board of Directors of the African Development Bank (AfDB) Group approved on June 22 a loan of 30 million dollars to Norsad Capital Limited, an impact investor based in Botswana.
This loan is intended for the financing of companies in the sectors of agri-food, health, financial services, manufacturing industry, information and communication technologies, as well as education.
Support inclusive growth
Through this financing, the Bank intends to catalyze increased access to long-term finance for businesses and promote private sector development in the Southern African Development Community region. Norsad will allocate part of the funds to companies operating in transition states in the region, to support inclusive growth. The expected outcome is job creation for, among others, youth and women in labour-intensive agro-industrial and manufacturing sectors.
Prioritize the “High 5”
“The Bank’s facility will allow for increased lending and extended loan tenors to Norsad customers, in line with Norsad’s medium-term strategy,” said Stefan Nalletamby, Director of Financial Sector Development at Norsad Group. the African Development Bank.
According to Ahmed Attout, Director of the Bank’s Capital Markets Development Division, the disruptive impact of the Covid-19 pandemic means that institutions such as Norsad must increase their lending to the private sector in order to support the economic recovery led by the latter in the region.
The project is aligned with a number of priorities of the African Development Bank, including its “High-5” strategic priorities. It also advances the Bank’s private sector development strategy for the period 2021-2025 and, due to Norsad’s adherence to environmental and social management standards, it is consistent with the Bank’s policy and strategy in climate and green growth as well as the SADC Climate Change Strategy and Action Plan (2015).
Norsad, which operates as a non-bank private financial institution, provides finance to private companies and financial institutions operating in the 16 member countries of the Southern African Development Community.
It is owned by eleven SADC national development agencies and four Nordic development finance institutions: Swedfund International; the Norwegian Investment Fund for Developing Countries; the Danish Investment Fund for Developing Countries; and the Finnish Industrial Cooperation Fund.