NORSAD is a Development Finance Institution (DFI) that provides financing to SMEs located in participating SADC countries  (Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe).

The main objective of NORSAD is to contribute to the private sector development of the participating SADC member countries. Each private sector project, supported by NORSAD, needs to demonstrate beneficial economic development impact, as well as be socially and environmentally sustainable.

NORSAD supports viable projects directly and indirectly through financial institutions. Financing is on market terms that are determined by the risks related to the SME project or financial institution.

Financing through SADC financial institutions

NORSAD provides financing to commercial banks, DFIs, and other types of finance institutions for on-lending to SMEs. This is mostly done by partnering with second and third tier banks that have limited access to long term funding. NORSAD’s facilities to these institutions are credit lines, agency lines and partial guarantees.

Direct SME financing

NORSAD provides long term loans directly to economically viable SME projects. Projects are often co-financed with local financial institutions and European DFIs.

Unique Nordic SADC partnership for private sector development

NORSAD is a SADC DFI with local presence and  focus on  strong partnerships with  SADC DFIs, and other finance institutions. We are not only an additional source of financing, but also work together with our partners and clients to gain improvements in transparency, corporate governance, environmental and social issues affecting SMEs.

Our role as a SADC DFI with Nordic roots is to facilitate partnerships between Nordic DFIs and SADC countries’ financial sector institutions. We are also a natural partner for Nordic companies to finance directly the long-term investments of their SADC based business and trade partners.