The establishment of The Nordic/Southern Africa Development Community (NORSAD) in Botswana is a big step towards strengthening the country Finance institution as well as the region, said Ville Lukkanen of Norsad.
Lukkanen said the launch of Norsad in Botswana will ensure a successful finance institution of the country ultimately strengthening the platform.
“We will continue to provide support for sustainable enterprise growth by investing in private sector businesses in the Southern Africa region,” he said. The newly launched company was recently registered as Botswana limited Liability Company, certified by the International Financial Services Centre (IFSC) and under the supervision of the Non-Bank Financial Regulatory Authority (NBFIRA).
“We are starting with an initial capital base of USD 73 million; the investment capital is expected to grow to USD 300 million within the first five years,” said Lukkanen. He said there are significant market opportunities for the growth of Norsad.
Norsad has been transformed from a multilateral entity into a limited liability company owned and governed by the more private enterprise and business oriented institution.
Lukkanen said Norsad is looking forward to contribute to private sector development of Southern African Countries, by way of availing funding to enterprises that are financially, socially and environmentally sustainable, and which create jobs.
Norsad is a development finance institution that provides financing to SMME’s in participating SADC countries (Angola, Botswana, Lesotho, Malawi, Tanzania, Zambia and Zimbabwe.” Nordic-SADC initiative is owned by mainly development finance institutions from 4 Nordic countries and 11 SADC countries.
On his part, the Group CEO African Banking Cooperation Douglas Munatsi said ABC has enjoyed a fruitful partnership with Norsad over the years.
However, Munatsi urged Norsad to consider increasing their deal size to be bigger between 10 -20 million or 7.5 ÔÇô 15 million. In addition, he said Norsad should look at other schemes that include housing loans, saying housing is a major problem faced by most African countries.