Export Development Fund (EDF) and Norsad Capital have joined forces to support Malawi's export potential and economic growth. The partnership was unveiled on Wednesday, the 16th of August, in Lilongwe following the signing of a Memorandum of Understanding (MOU), between the two institutions.
Under the MOU, EDF and Norsad Capital will collaborate in exploring potential business opportunities including provision of financing, investment, and technical support to Malawian businesses. The two institutions will also share investment avenues, especially when funding requirements transcend individual thresholds.
Speaking during the signing event, Deputy Governor for the Reserve Bank, William Matambo said the partnership between EDF and Norsad Capital represents a significant milestone in the provision of financing solutions that can support the growth businesses in the country.
‘As a country we need more strategic partners like Norsad Capital who are very key in providing financing solutions that are easily accessible and affordable especially for our key export-oriented projects and enterprises, and initiatives that are geared towards supporting industrialization and structural transformation of our economy,’ said Matambo.
As a thematic impact investor aligned with the United Nations Sustainable Development Goals (SDGs), Norsad Capital holds a firm commitment to investments that strategically address societal and environmental challenges. With a 33-year track record of investing in Africa and investments of over USD 700 million in more than 170 companies in various sectors in Africa, Norsad Capital is poised to make significant contribution to Malawi’s private sector development through this partnership with EDF.
Kenny Nwosu, CEO of Norsad Capital, stated, “Our collaboration with EDF involves introducing each other to potential transactions to optimize deal flows. By harnessing our distinct areas of expertise and funding strategies, we will provide comprehensive insights to formulate impactful deals.”
Fredrick Chanza, Managing Director of EDF, emphasized, “Our shared objectives of fostering sustainable economic growth and development have catalysed this collaboration that will play a significant role in addressing the funding challenges that medium, and large-scale enterprises in Malawi face. This partnership will not only bolster the financial resilience of businesses but also elevates their potential to create positive change in Malawi. Together, we harness Malawi's expansive export potential and business prospects.”
EDF and Norsad Capital share a central focus on providing essential capital to profitable enterprises. A pivotal aspect of this collaboration is the mutual support in amplifying the private sector's pivotal role in driving economic growth. Moreover, the developmental challenges that hold significance for Norsad Capital mirror EDF's priorities, including financing for social infrastructure, bolstering manufacturing industries, and addressing the critical need for financial inclusion.
The EDF and Norsad MoU aligns with Norsad Capital's strategic focus on the Southern African Development Community (SADC) region, which remains underserved by financial institutions despite the abundant business prospects spanning multiple sectors.