The Infrastructure Development Bank of Zimbabwe (IDBZ) has signed a Memorandum of Understanding (MoU) with Norsad Capital, which is expected to unlock capital for local companies.
The development comes at an opportune time when the local economy is showing strong signs of stability, which is creating a need for growth of the local companies.
Norsad Capital, a provider of private credit to scalable businesses focused on growth, 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, which is 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 , offering 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.
Speaking soon after the signing ceremony, Norsad Capital CEO Kenny Nwosu said the MoU will culminate in the exchanging of notes between the two entities.
"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," he said.
He bemoaned the fact that the region and market remain under-served by financial institutions despite the enormous business opportunities in the area.
Nwosu said in addition to the various benefits, the MoU will be helpful for Norsad 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.
IDBZ Chief Executive Officer, Zondo Sakala said the partnership has been established after realizing that the duo shares common ground.
"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," he said.