Norsad Capital on investment flows driving Africa’s Agenda 2030 target

Norsad Capital, an impact investor and private credit provider, has been making significant strides in supporting profitable growth-stage companies in sub-Saharan Africa. The organization, with its headquarters in Botswana, has a strong focus on creating sustainable livelihoods, promoting gender equality, addressing climate change, and enhancing financial inclusion in the region. In a recent interview with CNBC Africa, Nathaniel Nyika, the Acting CEO of Norsad Capital, shared insights into the investment strategies and impact outcomes of the organization in 2023. In 2023, Norsad Capital continued to prioritize investments in non-banking financial institutions to enhance financial inclusion for the underbanked and underserved populations in the region. By channeling funding into these institutions, Norsad Capital aims to enable individuals to access financial products for various needs such as education, healthcare, and home improvements. Additionally, the organization focused on the food value chain, particularly in agro-processing, to support sustainable development goals aimed at ending hunger. Moreover, Norsad Capital directed investments towards addressing challenges in the payment space in Africa, particularly in reducing the costs associated with cross-border payments. By leveraging innovative digital infrastructure, the organization seeks to facilitate more affordable and efficient payment solutions for individuals and businesses across the continent. Furthermore, Norsad Capital continued its commitment to affordable housing by providing financing to developers working on housing projects that cater to underserved segments of the population. One of the key pillars of Norsad Capital's investment approach is measuring impact through various metrics such as job creation, youth employment, gender diversity in the workforce, and the number of end clients benefitting from financial products. In 2023, the organization supported the creation of 15,000 jobs, with 33% of these opportunities going to the youth. Additionally, Norsad Capital emphasized the importance of empowering women in the workforce, as reflected in the 40-45% female employment rate in the companies they invested in. Furthermore, Norsad Capital highlighted its contributions to environmental sustainability through investments in renewable energy projects. One notable achievement in 2023 was the powering of 200,000 households in Zimbabwe through a solar energy initiative, demonstrating the organization's commitment to advancing clean energy solutions in the region. In terms of financial returns, Norsad Capital follows a balanced approach that considers both the profitability of investments and their societal impact. By striking a harmonious balance between financial returns, risk management, and impact objectives, the organization aims to deliver sustainable results that benefit stakeholders across the spectrum. Looking ahead to 2024, Norsad Capital remains focused on promoting renewable energy solutions, particularly in rural areas where access to electricity is limited. The organization's ongoing efforts in expanding solar power initiatives aim to bring light and energy access to communities that have long been underserved in the region. In conclusion, Norsad Capital's commitment to driving positive change through impact investments underscores its pivotal role in advancing sustainable development goals in sub-Saharan Africa. By aligning financial success with social and environmental impact, the organization continues to pave the way for a more inclusive and prosperous future for the region.