Swedfund and Norsad Finance partner in assisting hospitality sector
Norsad Finance is an impact investor and regional private credit firm offering medium to long-term risk capital to mid-market growth companies across the Southern Africa region.
Norsad Finance has received Technical Assistance (TA) of EUR60,000 from its shareholder, Swedfund (Sweden’s Development Finance Institution), to support its hospitality portfolio which has been negatively impacted by the COVID-19 pandemic.
Swedfund is a responsible, long-term investor that contributes to poverty reduction through viable and sustainable businesses in low and middle-income countries in Africa, Asia, Latin America, and Eastern Europe. This collaboration is a demonstration of the dedicated commitment and partnership between the two entities. The TA facility will be used to assist Norsad’s hospitality investments in Malawi and Zambia to alleviate the impact of COVID-19 on their workforce and suitably equip them to reopen when restrictions begin to ease and the travel and tourism industry moves from crisis management to recovery.
The intent of the TA facility is to further Norsad’s support of the hospitality sector which include protecting the jobs attributed to these investments and limiting the negative impact that increased unemployment may have on the local communities. The protection of jobs will be crucial in enabling businesses to recover from COVID-19 disruptions.
In Sub Saharan Africa, nine out of ten jobs are generated in the private sector, with an estimated 80 per cent of these in small and medium-sized companies. In the light of Covid-19, it is now more important than ever for Development Finance Institutions like Swedfund partnering with Impact Investors such as Norsad to increase access to long-term financing for small and medium-sized companies with the purpose to both protect and create jobs. This demonstration of commitment to the workforce has significant additional benefits including maintaining the goodwill of workers, customers and the broader community.
With the support of the TA facility, suitably qualified Human Resource (HR) Management specialists will be identified to engage with partner portfolio companies to conduct a review and gap analysis of existing plans, policies, and procedures. Supported by targeted training, further assistance will be provided in updating policies and procedures and updating plans in alignment with current best practice against the backdrop of the current COVID-19 pandemic.
Aligned to its purpose of ‘Building a better Africa’, Norsad remains committed to assisting and supporting partner companies during these challenging times.