Focused on financial inclusion across sub-Saharan Africa and Asia, Nordic Microfinance Initiative has rebranded to Abler Nordic as it kicks off fundraising for latest Fund V.
Speaking on the new development, Arthur Sletteberg, Managing Director at Abler Nordic said sub-Saharan Africa is one of the firm’s key regions, and will continue its growth under the new name and new fund.
He further explained that 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,” he said.
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 $34 million in Sub-Saharan Africa, with current investments of $17.5 million.
Foreign Exchange Facilities, funded by the Norwegian Ministry of Foreign Affairs, enable Abler Nordic to provide capital in local currency and have been instrumental in securing both equity and debt investments in Sub-Saharan Africa of $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.
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 its 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.