Abler Nordic will commence fundraising for Fund V in 2023, with the ambition of raising at least $140 million (Sh17.7 billion) and a significant allocation for further investments in Kenya and Sub-Saharan Africa.
This will be part of the firm’s efforts to increase its footprint in Kenya with investments in more microfinance institutions.
Formerly Nordic Microfinance, the firm has been deploying currency to local microfinance institutions in local denominations, in a bid to cushion them from high repayment that may be associated with international currency changes.
The Investments Director and Head of Abler Nordic’s Kenya office Godfrey Kaindoh told The Star that they are looking to tap into more businesses in Kenya that are serving financial inclusion.
“Currently we own 10.6 percent stake in Kenya Women Finance Trust (KWFT) and 40 percent in Juhudi Kilimo. Others are in the pipeline but I can’t disclose them because of the confidentiality of the transaction. But we have two or three 3 that we will close in the near future,” said Kaindoh.
Up to now, the company has invested over $34 million (Sh4.3 billion) in Sub-Saharan Africa, with $16.4 million (Sh2.08 billion) invested in Kenya in three companies.
The firm says the operating model is such that they (investors) have to take the loss in the case of a deterioration in the Kenyan shilling.
Abler Nordic’s managing director Arthur Sletteberg said the firm has had to incur an aggregated loss of $16,000 (Sh2 million).
The renewed expansion comes after the firm announced a change of name from Nordic Microfinance Initiative to Abler Nordic.
“The opportunities for inclusive economic growth in Sub-Saharan Africa are vast, yet more risk-willing investment capital is needed,” added Kaindoh.
In Sub-Saharan Africa, 90 per cent 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.
“Access to a wide range of financial services such as savings, agricultural financing, and insurance in addition to microcredit can help low-income people adapt and manage economic and climate shocks,” said Sletteberg.
