The four Nordic development finance institutions – Finnfund, IFU, Norfund and Swedfund – have recently completed a USD 34 million equity investment in Norsad Finance Limited, a provider of long term financing for SMEs in Southern Africa. The investment increases Norsad’s capital base to over USD 100 million and will facilitate the company’s strategy of expanding its investment activities in the region.
NORSAD Fund and Agency was established in 1990 pursuant to an agreement between the governments of the four Nordic countries and the countries of the Southern Africa Development Community (SADC). Concurrently with an incorporation of the business, the Nordic DFIs became shareholders in Norsad Finance Limited together with eleven SADC development institutions in December 2011.
The purpose of the investment is to support Norsad’s objective to improve living conditions in Southern African countries by financing commercially viable private enterprises, directly to individual companies as well as indirectly through the financing of banks and other financial intermediaries active in the SME sector. Norsad Finance’s mission is to provide long term risk capital to Southern African companies that are financially, socially and environmentally sustainable.
Mr. Pekka Juusela, Senior Adviser at Finnfund and Chairman of Norsad Finance, said: ”The Nordic DFIs are very pleased to play an important role in the continued evolution of Norsad. The company’s objective of supporting the growth of the private sector in Southern Africa is closely aligned with our own goals and, going forward, we see many possible avenues of cooperation.”
Norsad is a Botswana registered and International Financial Services Centre licensed company and is presently operating from its branch in Lusaka, Zambia. The company shall re-locate its offices to Gaborone, Botswana, by the end of 2012.
For more information please contact:
Ms. Sari Nikka, CEO Norsad Finance Limited, +260 966 866 030, sari.nikka@norsad.org
Mr. Pekka Juusela, Chairman Norsad Finance Limited, +358 40 547 88 49, pekka.juusela@finnfund.fi