EIB and Norsad Capital unveil €10m COVID Resilience Business Finance Initiative in Botswana

The European Investment Bank (EIB) has agreed to provide support worth EUR 10 million in new long-term finance for entrepreneurs and businesses across Botswana with leading local partner, Norsad Capital.

This is the EIB’s first targeted private sector financing support to help Botswana businesses affected by COVID-19 and is part of the EIB’s engagement with financial partners across Africa. to build economic resilience in the face of the pandemic.

The new partnership between the EIB, the world’s largest international public bank, and Norsad Capital, a leading impact investor and private debt firm in Africa, will increase access to long-term finance for businesses in across Botswana and build economic resilience in the face of the challenges of the COVID -19 pandemic. This builds on close cooperation over the past few years to support private sector investment across the country.

The new business financing will support investments in manufacturing, agricultural, service and trade businesses across the country.

The new EIB-Norsad Capital cooperation to support business investment in Botswana was officially announced in Gaborone by Kenny Nwosu, CEO of Norsad Capital, and Jim Hodges, EIB Regional Representative in Southern Africa.

“Businesses in Botswana have been impacted by the health, trade and business challenges triggered by the COVID-19 pandemic.

Norsad Capital will target eligible private sector investments across the country seeking to create economic opportunity. The European Investment Bank’s €10 million support to businesses in Botswana will unlock new private sector finance, which will have a positive impact on livelihoods.

The close cooperation between the Norsad Capital and EIB teams over the past few months has opened up access to longer-term loans which are essential for business growth in difficult times and ensure that Botswana benefits from the EIB’s commitment to building economic resilience in the face of COVID across Africa,” says Nwosu.

“Increasing access to finance for entrepreneurs and businesses is key to addressing trade uncertainties and overcoming economic challenges exacerbated by COVID-19. Today’s new agreement shows how the European Union and its African partners are together helping to defeat COVID and ensure that private sector businesses can invest, create jobs and grow.

As part of Team Europe, the European Investment Bank is pleased to provide EUR 10m of new targeted financing to Norsad Capital to unlock critical new private sector financing to boost private sector investment, create jobs and accelerate Botswana’s post-pandemic recovery,” said EIB Vice President Thomas Östros.

“The European Union is committed to supporting the private sector in Africa. Team Europe’s cooperation with the European Investment Bank will increase access to targeted trade finance for businesses across Botswana.

Helping private sector resilience with the new €10 million funding package will create jobs, unlock business growth and enable Botswana companies to seize new business opportunities in the years to come,” the Ambassador said. Jan Sadek, Head of the European Union Delegation to Botswana.

Supporting business investment across Botswana during difficult times

The EIB’s EUR 10 million 10-year loan to Norsad Capital will provide new financing to private businesses, including small and medium enterprises, across Botswana.

The new funding will allow for longer average tenors for business loans and allow businesses to better reflect the economic life of new investments.

Ensure that Botswana benefits from the EIB’s rapid response to build economic resilience in the face of COVID

The new EIB-Norsad Capital cooperation represents the first EIB support for business investment in Botswana in eight years.

This program is part of the EIB’s increased engagement across Africa to ensure businesses can continue to access finance as they face unprecedented health, trade and commercial challenges related to the COVID-19. The investment was approved by European Union finance ministers in April 2020, weeks after the impact of the pandemic was acknowledged.

The EIB is the largest international public bank in the world, directly owned by the 27 Member States of the European Union.

Since the pandemic, the EIB has provided over EUR 8 billion for private and public investment across Africa.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union (EU) owned by its Member States. It makes long-term finance available for sound investments to help achieve EU policy objectives.

EIB Global is the new specialist arm of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster a strong and focused partnership within Team Europe, alongside other development finance institutions and civil society. EIB Global brings the Group closer to local people, businesses and institutions through our offices around the world.

Send your news to [email protected] and via WhatsApp to +233 244244807
To follow Ghana News to google News