Browsing: Norfund

Coop Bank
  • The $100 million loan has been disbursed for onward lending.
  • Coop Bank CEO says the funding “is most timely in view of the great need to better support our business customers.”
  • The long-term tenure of the facility has significantly boosted Coop Bank’s ability to offer credit to SMEs.

The Co-operative Bank of Kenya has received a long-term seven-year funding amounting to $100 million from a consortium of financial institutions to empower Kenyan SMEs.

SMEs are a major source of employment in Kenya, providing jobs to a large number of people, especially in rural areas. They absorb a significant percentage of the labor force, thereby reducing the burden on the formal job market.

With a strong focus on climate and impact, the consortium lead DEG offers financing, advice and support to private sector enterprises operating in developing and emerging-market countries.

Loan to empower Kenyan SMEs

The loan is a Tier II …

Norfund investments in Kenya
  • Norfund has partnered with Ethos Mezzanine Partners 3 to invest in Balaji Group, a Kenyan textile manufacturer
  • Norfund said it has partnered with Ethos Mezzanine Partners 3, a closed-ended specialist credit fund to invest US$25 million into Balaji, which is one of Sub-Saharan Africa’s leading textile companies
  • The two partners said they have executed a USD 25 million mezzanine debt investment in the Balaji Group, with both contributing US$12.5 million each

The government of Norway, through the Norwegian development finance institution Norfund, has signed a new partner to invest in Balaji Group, a Kenyan-based textile manufacturer.

On February 24, 2023, Norfund said it has partnered with Ethos Mezzanine Partners 3, a closed-ended specialist credit fund to invest US$25 million into Balaji, which is one of Sub-Saharan Africa’s leading textile companies.

Job creation in Kenya

The investment is also expected to aid the creation of 6,000 new direct jobs and another …

More green for Norfund in East Africa as agency unveils new strategy

Norfund, the Norwegian financial institution, an active strategic minority investor – wholly owned and funded by the Norwegian Government has unveiled its three-year strategy in East Africa. Norfund is a significant investor in the region, having been instrumental in realizing the Lake Turkana Wind Power Project and as a major investor in Equity Bank.

The fund’s new strategy incorporates scaling up investments in the manufacturing and agribusiness sectors, as well as a new investment pillar on green infrastructure, including waste management, access to clean water, transmission lines and power storage.

Norfund has been investing in East Africa for over 20 years with investments in clean energy constituting almost 40% of its portfolio in the region. Some of Norfund’s investments include projects such as Globeleq, Lake Turkana Wind Power, Bujagali Hydro Power and M-KOPA.

The new green infrastructure pillar which includes investments in waste management will complement Norfund’s existing investment focus …


AfricInvest, a leading pan-African private equity firm, has announced the fourth close of Financial Inclusion Vehicle (FIVE), an evergreen platform for investing in financial institutions in Africa.Through its investments, FIVE aims to improve access to financial services for the growing African population, while achieving attractive financial returns for its investors.

AfDB, the African Development Bank, joined the capital of FIVE alongside existing investors FMO and BIO both development finance institutions of the Netherlands and Belgium, respectively; Norfund, the Norwegian investment fund for developing countries; IFU, the Danish investment fund for developing countries; KfW, the German government-owned development bank and CBK Pension Fund, the pension fund of the Central Bank of Kenya.

As the current level of banking penetration on the continent is a mere 20%, achieving universal access will require a fivefold increase. Digital transformation is one of the key drivers toward the universal access and as such, FIVE seeks …