Norsad Finance Strategy for 2012-2017
The essence of Norsad Finance operations is to achieve sustainable development outcomes through financing Southern African companies with growth potential. The principle of the investment operations is to take prudent financial risks in a cost-effective way to ensure long-term financial sustainability and increase shareholder value.
Norsad Finance shall achieve its mission, vision and targets by focusing on the following: nine points:
1. Financing Companies with Growth Potential
Norsad Finance shall improve the competitiveness of Southern African companies with growth potential by extending customised and flexible financing to their start-up and expansion investments.
In addition to long-term sustainable financing, Norsad Finance will add value by improving the corporate governance of its investee companies by requiring sound corporate structures and transparent financial reporting, as well as compliance with the regulatory requirements of the host country.
2. Partnerships with other Financiers
Norsad Finance shall work in close collaboration with commercial banks and other financiers in the region to generate financing, co-financing and risk sharing opportunities, as well as finance the growth of the sustainable financial sector in the region.
3. Investment Portfolio Growth
Norsad Finance’s goal is to triple the total amount of its investments by 2017 by obtaining additional capital from Shareholders, retained earnings and leveraging from the market.
4. Strengthen Partnership with and among its Shareholders
Norsad Finance's aim is to increase co-financing with Shareholder DFIs, as well as actively create synergies and linkages between/among its Shareholders. It will seek to strengthen its investee companies by catalysing financing through its network of Shareholders and other national and international development finance partners.
Norsad Finance shall share its knowledge of the Southern African economies and market dynamics to assist its Shareholders to increase their investments in Southern African Countries. Norsad Finance shall work closely with its Shareholders to share knowledge and best practices in financing socially and environmentally sustainable growth.
5. Social and Environmental Sustainability
Norsad Finance is committed to ensure that social and environmental sustainability objectives and activities will become fully anchored in business strategies of its investee companies and integrated into their procedures and operations.
6. Focus on Development Impact
In its investments, Norsad Finance will emphasise investing in companies which create or sustain jobs, promote transfer and introduction of skills and sustainable technology, diversify business activities and deepen financial sector services, as well as contribute to national income and foreign exchange revenue. By working closely with the investee companies and partner financial institutions, Norsad Finance investment professionals ensure that all investee companies have positive impact on the surrounding community and environment. Development impact is systematically evaluated as part of the investment appraisal and is used as one of the key approval criteria for the financing. The realized development impact of investee companies is measured and reported annually.
7. Excellence in Execution
Norsad Finance endeavours to increase the internal professional skills base through recruitments and internal staff training and development. By accumulating financing skills and striving for excellence in execution, Norsad Finance aims to add value to its investee companies.
8. Sustain Profitability and Operational Efficiency
Given that the main objective of Norsad Finance operations is to contribute to sustainable private sector development in Southern African Countries, the principle of the investment operations is to ensure the long-term financial profitability of Norsad Finance by ensuring that risks taken can be matched with expected returns. Norsad Finance will further enhance the quality of its internal processes and procedures in investment preparation and monitoring to sustain operational efficiency and increase the value of Shareholder’s equity.
9. Accountability and Transparent Reporting
The reporting of Norsad Finance achievements with regard to its strategic targets, social and environmental sustainability and development goals to its Shareholders is based on systematic and transparent reviewing and monitoring. Norsad Finance’s financial reporting provides a true and fair view of Norsad Finance’s financial performance. Norsad Finance informs the public on its operations actively and openly by emphasizing its role in promoting the growth and development of local and regional companies.
Norsad Finance provides long term risk capital to Southern African companies that are financially, socially and environmentally sustainable.
Norsad Finance will be recognized as a provider of flexible and customised financing solutions to commercially viable, as well as socially and environmentally sustainable businesses in the Southern African region by:
- providing customised debt, mezzanine, and on exceptional basis, equity financing for growth companies and financial institutions;
- doubling its capital base by 2020 through a capital increase from our Shareholders, retained earnings and leveraging from market;
- maximizing its economic and development impact by actively catalysing co-financing from its Shareholders, venture capital funds, commercial banks and development finance institutions (DFIs); and
- adding value to its Shareholders by being an accountable and complementary tool for achieving their private sector development goals.