malvernmugadzikwa
Business Writer
NORSARD Capital says its partnership with the Infrastructure Development Bank of Zimbabwe, will expose the regional group to more investments opportunities in the country.
Norsad chief executive, Kenny Nwosu, said this at the signing ceremony of a Memorandum of Understanding (MoU) between his company and the IDBZ on Tuesday.
The MoU seeks to enhance cooperation and collaboration on technical funding matters, co-investments, and portfolio management.
Nwosu said the MoU set out terms of the partnership primarily around core transactions for increased investments into Zimbabwe.
Over the past 32 years, Norsard, a regional impact investor and private credit provider, has invested over US$500 million in Africa, with Zimbabwe being the major recipient of its capital.
Since 2010, Norsard has supported local businesses to the tune of US$70 million in financial institutions, food value chains, industrials and renewable energy (solar and hydro).
Another US$10 million project, approved during this quarter was in the pipeline.
Last year Norsad approved US$10 million to FBC Holdings to finance affordable housing and this year Norsad approved a US$10 million to CABS to finance export businesses.
The company has also invested in renewable energy – Solar and hydro (Harava Solar Park, Pungwe-C and Riverside Solar. In fact, Riverside was Zimbabwe’s first Independent Power Producer to connect to the grid.
The company also supported Irvines and Lake Harvest.
“Our agreement means that we can introduce each other to potential transactions and seek to share risk,” he said.
“It is also strategic for Norsard to have a partner on the ground in Zimbabwe who has local knowledge and can provide context on businesses that we consider engaging in the country.”
Nwosu said since the formation of the company, most of its capital came to Zimbabwe.
“Of all the countries, we have invested in, we have actually invested more in Zimbabwe than any other country in Africa. Our purpose as an impact investor is to build a better Africa. We do that by supporting businesses and partner companies to deliver impact through the services and employment they provide. Sustainability is at the heart of our development mandate and guides our impact initiatives,” he said.
Norsard was established in 1990 as a multilateral collaboration between the Nordic and SADC governments. The company was privatised in 2011 and is now owned by the respective development financial institutions of former Norsard member countries consisting of Zimbabwe through the IDBZ, 10 other SADC countries and four Nordic DFIs (consisting of Norfund (Norway), Swedfund (Sweeden) Finfund (Finland) and the Investment Fund for Developing Countries (Denmark).
“Our sector of focus . . . is aligned to regional priorities of the SADC region which include food security and industrialisation,” said Nyika.
“Norsard selects investments aligned to the UN Sustainable Development Goals and seeks relationships that contribute to building a better Africa.”
Deputy Finance and Economic Development Minister, Clemence Chiduwa, said the investments that Norsard made in Zimbabwe had significant impact.
He said the collaboration between the IDBZ and Norsad Capital would add capacity to IDBZ as it carries out its infrastructure development interventions in Zimbabwe, while also allowing Norsad to scale up its investment and funding in the country.
“As you are aware, Zimbabwe is currently in a growth phase following years of economic stagnation, and the provision of suitable funding opportunities for business growth will enhance this drive,” said Chiduwa.
“This continued support by Norsad is an affirmation of the narrative of Zimbabwe being an investable destination that is open for business.
“I would also want to applaud the IDBZ and Norsad Capital for supporting Government’s expansionary drive through availing tailor-made and sustainable funding solutions to our companies.”
As at December 31, 2021, Norsard’s total equity was US$130 million, the balance sheet at US$180 million, an investment portfolio of US$150 million while fixed deposits and cash stood at US$22 million.
Bongani Ndlovu