LESOTHO Post Bank has joined forces with a Botswana investment company, Norsad Capital to create new opportunities for business in the country.
Feb. 21, 2023
2 min read
Post Bank joins forces with Botswana Investment Co.
Lesotho Post Bank MD, Molefi Leqhaoe
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Norsad Capital is an investment company that supports the growth of profitable companies in Africa through tailor-made debt finance solutions (private credit and debt solutions), enabling such companies to have a substantial impact through the services and employment they provide. The company aspires to positively impact the lives of 100 million Africans by 2030.
Recognising their common goals, the two companies announced their partnership this week.
Both the bank and Norsad Capital focus on providing much-needed capital to businesses, which can be used to promote economic growth and improve the lives of people on the continent.
“We recognise that we share common objectives in terms of private sector development in Lesotho, and this is what drives our decision to collaborate with each other,” Lesotho Post Bank Managing Director, Molefi Leqhaoe said during the signature of the Memorandum of Understanding (MoU).
The parties signed an MoU, which sets out the terms of the partnership. According to the Chief Executive Officer (CEO) of Norsad Capital, Kenny Nwosu, the MoU paves the way for his company to increase its investment activities in Lesotho.
“In line with Norsad’s growth strategy of deepening investments in SADC, the MoU paves way for Norsad to increase its investment activities in Lesotho through leveraging off the local presence of Lesotho Post Bank,” he said.
In terms of the agreement, the two parties will share contacts for potential business, assist each other when putting together sizable deals, and share an investment opportunity should the amount required exceed the limits available for funding by each party.
“In addition to the various benefits, it will be helpful for us to have partners on the ground in Lesotho who have local knowledge and can provide us with insights, for instance, about a business located in the country that we are considering doing business with,” Nwosu added.
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From a regional perspective, the deal fits in perfectly with the Norsad Capital focus on the SADC region, since Lesotho is one of the 16 states that make up this region.
This, according to Norsad, is a region most under-served by financial institutions, yet there is an enormous business opportunity in the area.
Lesotho Post Bank was set up by the government of Lesotho with the goal of providing financial services to the many unbanked and underbanked Basotho in the country.
To overcome the negative impact of financial inclusion, the bank targets both rural and urban parts of the country for the expansion of its services.
Norsad Capital, on the other hand, aims to be a thematic impact investor that selects investments that clearly contribute to solving social and environmental challenges.
This objective aligns with the overarching aim of the Lesotho Post Bank, which seeks to improve the quality of life of the citizens of Lesotho.