Press Release
Abler Nordic announces new fund to enable financial inclusion in Africa
(L-R) Abler Nordic Investment Director- Africa, Godfrey Kaindoh; Arthur Sletteberg CEO and Managing Director, Abler Nordic; Mwangi Githaiga Managing Director, KWFT and Nigel Smith Head of Strategy and Deal Advisory, KPMG East Africa (Photo: Abler Nordic)
Abler Nordic is the new name of Nordic Microfinance Initiative, a public-private partnership investing in companies in Sub-Saharan Africa and Asia supporting low-income households with financial services. The new name was launched locally at an event in Nairobi on February 21 by Managing Director Arthur Sletteberg, along with the announcement of the start of fundraising for their latest Fund V in 2023.
“Sub-Saharan Africa is one of our key regions, and we are excited to continue our growth under our new name and our new fund. Global poverty has risen for the first time in 20 years and low-income people in Africa are among the hardest hit by climate threats, despite contributing very little to global greenhouse gas emissions. Access to a wide range of financial services such as savings, agricultural financing, and insurance in addition to microcredit helps low-income people adapt and manage economic and climate shocks. Our new name reflects our company’s overall goal: to help low-income households gain access to these types of relevant financial services so that they can lay a foundation for a better life,” said Arthur Sletteberg, Managing Director of Abler Nordic.
At Abler Nordic, public investment capital from the Norwegian and Danish governmental funds for developing countries, Norfund and IFU respectively, is blended with commercial capital from private investors. Abler Nordic has invested a total of over USD 34 million in Sub-Saharan Africa, with current investments of USD 17.5 million. Foreign Exchange Facilities, funded by the Norwegian Ministry of Foreign Affairs, enables Abler Nordic to provide capital in local currency and has been instrumental in securing both equity and debt investments in Sub-Saharan Africa of USD 27 million where hedging conditions otherwise would limit such investments.
“The opportunities for inclusive economic growth in Sub-Saharan Africa are vast, but more risk-willing investment capital is needed. At Abler Nordic we do not invest where it is easiest or where risk is lowest, but where we believe we can achieve the biggest social impact alongside sustainable financial returns. I am looking forward to continuing to partner with our African portfolio companies alongside our Kenya-based team and seeking new investment opportunities as we continue to grow in Africa,” said Godfrey Kaindoh, Investment Director and Head of Abler Nordic’s Africa office.
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A committed and long-term investor with a tailor-made approach, Abler Nordic plays an active role in the development of the five Sub-Saharan African financial inclusion organisations it is currently directly invested in: Juhudi Kilimo (Kenya), Kenya Women Microfinance Bank, Baobab Group (Senegal, Ivory Coast, Mali, Burkina Faso, Nigeria, Tunisia, DRC, and Madagascar), Baobab Senegal, and Tugende (Uganda and Kenya). Abler Nordic holds board seats at all their equity investments and partners with portfolio companies to create value and support sustainable growth to help them achieve their mission.
Today, Abler Nordic’s global portfolio companies reach 9.4 million customers, 93 percent of whom are women and 71 percent living in rural areas. Women often face systemic barriers in accessing formal financial products, and rural areas are often the last to be financially served, due in part to infrastructure challenges. In Sub-Saharan Africa, 90 percent of loans are given for income generating purposes, which allow both rural and urban households to start and grow small businesses and improve their quality of life through increased spending on healthcare, education, and home improvements.
Since inception in 2008, over 12 million customers globally have been supported with access to responsible financial services through Abler Nordic’s investments.
Press Release
African Guarantee Fund and Clean Cooking Alliance challenge Africa’s Banking Industry to invest in Carbon Markets
The African Guarantee Fund (AGF) and the Clean Cooking Alliance, in partnership with the U.N. Capital Development Fund, have joined forces to empower Africa’s banking industry with knowledge and insights necessary to navigate carbon markets effectively.
Under the Partnership Platform for Clean Cooking Finance, the three institutions hosted over 100 Senior Bankers in Kenya for a “Banking on Carbon Markets” workshop that focused on financing clean cooking projects. Carbon finance business models, the intricacies of financing clean cooking projects and their associated risk-return profiles, were some of the topics discussed. Industry leaders and investors shared global evidence and practical experiences in underwriting risks related to lending to clean cooking carbon projects.
The workshop comes close on the heels of the Africa Climate Summit that brought together global key players in Nairobi. António Guterres, the UN secretary general, told the conference. “Africa is home to 60 per cent of the world’s best solar resources — but only two per cent of global investments in renewable energy over the last two decades. Now is the time to bring together African countries with developed countries, financial institutions and technology companies to create a true African Renewable Energy Alliance.”
The spotlight on green and sustainable finance primarily centers on mitigating climate risk, but the untapped potential for banks to maximize opportunities through climate action is often underestimated. In the face of mounting pressure from customers, shareholders, investors, and regulators, banks are compelled to align their corporate strategies and lending criteria with Environmental, Social, and Governance (ESG) standards.
Speaking at the workshop, Mr Patrick Lumumba, AGF Group Director of Capacity Development, emphasized that “Carbon projects have become instrumental in channeling funds across various sectors of the economy, expediting transitions towards a sustainable future. However, banks frequently lack comprehensive data to assess the risks and returns associated with carbon projects. They also lack information about effective market entry strategies, growth-oriented business models, risk management, and prudent portfolio construction practices.”
“Today’s workshop is a clear example of AGF’s capacity development efforts in action to enable the banking sector venture into carbon markets by way of increasing financing of clean cooking projects. Prioritizing this sector directly impacts on several SDGs such as gender equality, good health and wellbeing and indeed climate action.”
Mr. Feisal Hussain, CCA Senior Director of Innovative Finance, noted that “Banks are essential to realizing the full potential of the carbon markets by helping to fill the financing gap needed to initiate and scale up carbon projects. This is crucial to accelerating the clean energy transition and transforming the lives of people who currently do not have access to clean cooking fuels and technologies.”
“The new Partnership Platform for Clean Cooking Finance is key to this endeavor as it brings together several distinctive capabilities: CCA’s convening ability and technical expertise on clean cooking; African Guarantee Fund focus on Africa and de-risking investments, with a commitment to green finance; and UNCDF’s capital mandate for emerging markets,” he added.
VC4A, the leading startup platform in emerging markets, is proud to announce the 12 African startups that have been selected to participate in the 2023 VC4A Venture Showcase Africa. This annual flagship program brings together the best and brightest startups from across the continent, giving them the opportunity to pitch their ideas to investors and industry experts with the objective of raising their Seed or Series A funding rounds.
The 12 startups selected for the 2023 Venture Showcase Africa are:
Three ventures from Egypt, which are Rology, an AI-assisted tele-radiology platform that helps deliver accurate radiology reports on time; FreshSource, a B2B agri-supply chain platform that uses data and technology to connect producers to businesses, guarantee fair prices, and minimize food loss; and Pharmacy Marts, a B2B marketplace for pharmacies that provides a one-stop shop for products, financing, and logistics.
Four startups from Nigeria namely; Vendy, which helps businesses accept payments from customers without internet access; Treepz, a car-sharing platform for Africa that aims to reduce CO2 emissions; Winich Farms, an application that connects food producers to informal food processors and retailers in Africa; and OmniRetail, a B2B e-commerce platform offering supplier & retail software, to connect the informal retail ecosystem across Africa.
Three startups from Kenya; Duhqa, a digital supply chain platform that uses AI and automation to help SMEs and manufacturers grow their businesses; MPost, which is a digital platform that turns mobile phone numbers into formal postal addresses, and SympliFi, a blockchain-powered credit-as-a-service platform that provides affordable credit to MSMEs in Africa.
To close the top 12 list, one startup each from Uganda and Senegal; Emata is a digital lending platform on a mission to provide loans to millions of farmers in East Africa and Maad, is an e-commerce marketplace connecting manufacturers and retailers in Francophone Africa.
These high-growth ventures were chosen from a pool of hundreds of applicants, and represent a diverse range of industries and sectors in the Seed and Series A tracks. Each startup will receive mentorship, technical assistance and will have the opportunity to showcase their companies to an audience of investors and industry leaders in the VC4A Deal Room.
“We are thrilled to unveil these exceptional startups for our upcoming VC4A Venture Showcase Africa 2023 program. Each is a beacon of innovation and entrepreneurship. These visionary teams have demonstrated remarkable potential and we eagerly anticipate the transformative journey ahead as we accelerate their growth and shape the future together,” said an excited Abu Cassim, Lead of the Acceleration Team at VC4A.
Press Release
Goodwell invests in SOUK Farms to scale sustainable agricultural production across Rwanda
Goodwell Investments, an impact investing firm fostering inclusive growth in emerging markets is pleased to announce their investment in SOUK Farms, a leading grower and exporter of fresh horticultural produce from Rwanda. The funding comes through uMunthu II, the impact investor’s 150 EUR million fund focused on scalable, early-growth stage businesses in Africa. The investment provides SOUK Farms with a solid foundation for scaling their sustainable agricultural business in Rwanda, enabling them to create resilient systems and value chains that benefit local farmers and the surrounding community.
Founded in 2019, SOUK Farms has already carved out a significant niche in Rwanda’s agricultural landscape, building its own farming operations as well as working with a wide network of outgrowers to cultivate and export high-quality exotic horticultural produce while also serving consumers in the Rwanda market. They have achieved this with a unique blend of innovation and a steadfast commitment to strengthening the resilience of local farms against climate change and disruptive rainfall patterns.
Partnering with Goodwell gives SOUK Farms the necessary capital to pursue these ambitions at a wider scale. “The opportunities to create sustainable agricultural practices and improve existing ones in Rwanda are great. Our partnership with Goodwell will drive a huge impact not only for the growth of SOUK Farms but also for the farmers and the communities we work as we continue to offer solutions that improve incomes and create employment while also implementing education and outreach programs for youth and women,” said Seun Rasheed, Founder and CEO at SOUK Farms.
SOUK Farms has been a key player in Rwanda’s socioeconomic transformation, and their ability to create a positive impact in the local agricultural supply chain is well established. Working closely with over 1,200 farmers across Rwanda, they have greatly improved livelihoods, enabling farmers to earn upwards of 300% more than they did prior to being outgrowers for SOUK Farms. Currently, 71% of the company’s workforce are women, aligning with the Rwandan government’s national Agriculture policy which promotes gender equality at all levels of the agricultural value chain.
Their impact efforts and solid business model are an ideal fit for Goodwell’s agricultural investment strategy, which strives to improve value chains, reduce post-harvest losses, and create better livelihoods for smallholder farmers.
“Under the experienced leadership of Seun Rasheed, SOUK Farms has a clear vision for expanding their impact and productivity in a sector with ever-increasing demand. We are proud to support the company in this exciting stage of their business growth, and look forward to seeing how they continue to innovate in the agricultural space. With this investment, we are also pleased to mark our entry into the Rwandan market, further expanding Goodwell’s presence in East Africa,” said Judith Ngonyo, Investment Manager at Goodwell Investments.
This investment comes at a crucial time, enabling SOUK Farms to build on its success, scale operations, and increase the productivity of Rwandan farmers. It also reinforces Goodwell’s commitment to supporting companies that improve livelihoods and deliver affordable, accessible, high-quality goods and services to underserved populations.
