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Business Reporter
NORSARD Capital, a regional impact investor and private credit provider, has invested over US$500 million in Africa over the past 32 years, with Zimbabwe being the major recipient of its capital, chief investment officer Nathaniel Nyika said.
Mr Nyika said this at the official signing ceremony of a Memorandum of Understanding (MoU) between Norsad and the Infrastructure Development Bank of Zimbabwe (IDBZ) on Tuesday, which seeks to enhance cooperation and collaboration on technical funding matters, co-investments, and portfolio management.
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 (Sweden) Finfund (Finland) and the Investment Fund for Developing Countries (Denmark).
Since 2010, Norsard has supported local businesses to the tune of US$70 million with its investments cutting across sectors including financial services, food value chains, industrials and renewable energy (solar and hydro).
Another US$10 million project, approved during the current quarter, is in the pipeline, Nyika said.
“Our sector of focus…is aligned to regional priorities of the SADC region, which include food security and industrialisation,” said Mr Nyika. “Norsard selects investments aligned to the UN Sustainable Development Goals and seeks relationships that contribute to building a better Africa.”
Norsad chief executive Mr Kenny Nwosu said the MoU set out the terms of the partnership primarily around core transactions for increased investments into Zimbabwe.
“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 the formation of the company, Zimbabwe 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.
Deputy Minister of Finance and Economic Development Clemence Chiduwa said the investments that Norsard made in Zimbabwe had made 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 Mr 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 the Government’s expansionary drive through availing tailor-made and sustainable funding solutions to our companies.”
IDBZ chief executive Mr Zondo Sakala said despite multiple challenges the country was facing, the bank was making “commendable efforts in response to our Government’s call for strategic partnerships aimed at promoting sustainable and resilient infrastructure which, as we know, is a critical enabler for inclusive national socio-economic growth and transformation.”
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