The Infrastructure Development Bank of Zimbabwe (IDBZ) has joined forces with Norsad Capital, to introduce each other to potential transactions and seek to collaborate and share risk.
Kenny Nwosu, CEO of Norsad Capital, said: “We each have our own expertise and funding models, and together we can provide far more in-depth insights when putting together a deal.”
Both financial institutions focus on providing much-needed capital to businesses, which can be used to promote economic growth and improve livelihoods.
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“We recognise that we share common objectives in terms of private sector development in Zimbabwe, and this is what drives our decision to collaborate with each other,” said Zondo Sakala, the CEO of the IDBZ.
The two parties will share contacts for potential business financing in Zimbabwe; assist each other when putting together sizable deals; and share investment opportunities of appropriate thresholds that meet the funding requirements of each party.
“In addition to the various benefits, it will be helpful for us to have a partner on the ground in Zimbabwe who has local knowledge and can provide us with insights on businesses located in the country that we are considering doing business with,” Nwosu said.
From a regional perspective, the deal fits the Norsad Capital focus on the Southern African Development Community (SADC), where Zimbabwe is located.
“This is a region and market under-served by financial institutions, yet there are enormous business opportunities in the area,” commented Nwosu.
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Identifying itself as an impact investor aligned to the United Nations Sustainable Development Goals (SDGs), Norsad Capital has a thematic approach and selects investments that clearly contribute to solving social and environmental challenges. This objective aligns with the overarching aim of the IDBZ: to improve the quality of life of Zimbabweans. Many of the sectors that are of importance to Norsad Capital are equally significant for the IDBZ, such as the transition to clean renewable energy and the pressing need for financial inclusion.
The partnership augurs well for the future of the economy of Zimbabwe. Likely to make more capital available to growth-stage businesses in the country, this relationship will promote economic growth in the region.
