AfDB Board of Directors approve a US$30 million loan to Norsad Capital
The Board of Directors of the African Development Bank Group approved a US$30 million loan to Norsad Capital financing for businesses and to promote private sector development in the Southern Africa Development Community region.
Norsad, which is based in Botswana will channel a portion of the funding to enterprises operating in transition states within the region, and in support of inclusive growth and the expected outcomes is job creation for, among other groups, youth and women in the labor-intensive agro-processing and manufacturing sectors.
African Development Bank Group’s Director of Financial Sector Development, Stefan Nalletamby said the Bank’s facility will support increased lending and tenor extension of loans to Norsad’s clients in line with Norsad’s medium-term strategy.
Manager of the Capital Markets Development division at the Bank, Ahmed Attout said the disruptive impact of the COVID-19 pandemic means institutions such as Norsad must increase their lending to the private sector to support private sector-led economic recovery in the region.
The project is aligned with several African Development Bank priorities, including its High 5 strategic priorities. It also advances the Bank’s Private Sector Development strategy 2021-2025 and owing to Norsad’s compliance with environmental and social management standards, is in line with the Bank’s Climate and Green Growth Policy and strategy and the SADC Climate Change Strategy and Action Plan 2015.
Norsad operates as a private non-bank financial institution and provides financing to private enterprises and financial institutions operating in the 16-member Southern African Development Community. It is owned by eleven SADC national development agencies and four Nordic development finance institutions.
