The Development Bank of Namibia (DBN) has entered into a financing agreement with Norsad Capital in a deal that will position the bank to fully partake in the country’s renewable energy sector, as well as provide affordable home loans.
According to the entities, the partnership is set to increase various investment mandates in Namibia, including affordable housing and the financial sector through injections into banking, insurance, microfinance, and investment funds.
“Among other resources, Namibia is rich in renewable energy sources, particularly solar and wind power. DBN’s move to join forces with Norsad will open up possibilities for increased investments in renewable energy projects which could see Namibia’s dependence on imported energy decrease while creating a positive impact for communities,” the two entities said.
Norsad Capital is an impact investor and private credit provider offering tailor-made debt solutions to profitable growth-stage companies.
“There are currently an array of investment opportunities in Namibia, including the renewable energy sector, infrastructure, agriculture and agribusiness. We look forward to being part of Namibia’s growth potential through more investment in these areas which form part of the four themes and four sectors of opportunity that we’ve identified for expansion across Africa,” Norsad Capital CEO Kenny Nwosu said.
Meanwhile, DBN Martin Inkumbi said the institution views finance for small and medium enterprises (SMEs) as vital to the economy and that’s why the DBN SME Centre structures finance for SMEs depending on the complexity of the project.
Inkumbi said the bank works with applicants to develop a deep understanding of business models, project proposals, and enterprise milestones so that it can develop viable financing terms that take sustainability, risk and growth into account.
“A partnership of this nature will allow us to further develop and support SMEs and other businesses with the appropriate products such as business loans and commercial property development finance,” he added.
This comes as the DBN was once announced as one of the possible investors to which the government is looking up to invest in the Green Hydrogen Project once it comes to fruition.
In addition, Inkumbi said, DBN has prioritised sustainable business practices since its inception, which entails providing responsible financing while gaining the best possible financial returns and contributing to improved outcomes for clients, the environment, and society at large.
This he said, is in line with Norsad Capital’s impact investment focus on the United Nations’ Sustainable Development Goals. Norsad Capital aspires to be a thematic impact investor selecting investments that clearly contribute to addressing social and environmental concerns while working towards their goal of impacting 100 million lives by 2030.
