The parties have signed an MoU which sets out the terms of the partnership. According to  Kenny Nwosu, CEO of Norsad Capital, “Our agreement means that we will introduce each  other to potential transactions and seek to collaborate and share risk. 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. “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,” explains Zondo Sakala, the CEO of the  IDBZ.

In terms of the agreement, 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 says.

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,” says Nwosu, explaining the reason for the company’s focus.

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.

Norsad Capital, previously known as Norsad Finance, was first established in 1990. Norsad  offers tailor-made debt solutions to profitable growth companies in Africa and has a goal to  impact 100 million lives over the next decade in line with its strategy to scale and deepen its  impact in Africa.

All in all, this 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.