NABA’s Member of the month is Norfund which this spring has expanded their presence in Africa by new investments, loans and a new office.
In May, this year, Norfund opened a new office in Accra, Ghana and is ready to start investing. “Initially, we will focus on investments in Ghana. After some years, we will probably expand to other English speaking countries in the region “, says Norfund Executive Vice President Finn Ivar Marum.
Geographical concentration is a key aspect in Norfund’s strategy. Till now, its priority regions have been East Africa, Southern Africa, Central America and selected countries in South-East Asia. However, the size of the fund, increased cooperation with commercial partners and input from various stakeholders indicated a need for some adjustments to the geographical area covered. “In addition to heading to West Africa, we have started including Ethiopia and Somalia in the regional initiative in East Africa” says Mr Marum. “Over a 10-year horizon, we will aim to include the whole of Sub-Saharan Africa in Norfund’s geographical area”.
Hon. Deputy Minister for Trade & Industry Robert Ahomka-Lindsay welcomes Norfund to Ghana
Norfund has also this spring made a USD 7.4 million investment in Verde Beef Processing PLC, an Ethiopian beef producer. Verde Beef Processing PLC produces premium beef and aims to become the largest cattle processing operation in Eastern Africa with a target output of more than 130,000 carcasses per year. The capital provided by Norfund will help the company achieve this goal by enabling the construction of a state of the art abattoir and meat processing facility – currently underway – and to fund working capital for the business.
Furthermore, Norfund has made a 23.3 million NOK loan investment (2.75 million USD) into Nyama World Limited, a fully integrated beef production company in Malawi. All livestock are sourced, produced, processed and sold predominantly in Malawi. Once the business is fully developed, the aim is to engage as much as 30,000 smallholder farmers in the value chain.
Norfund is an active, strategic minority investor. Norfund offer risk capital and expertise to help building sustainable businesses in poor countries. Norfund aim to invest in countries where it can have the greatest impact. In countries where the private sector is weak and access to capital is scarce. This is primarily in Sub-Saharan Africa, but also in some countries in South East Asia and Central America.
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