Leading African boutique investment and development company established August 2016 through partnership agreement amongst four founding shareholders: Norfund (Norwegian Investment Fund for Developing Countries, 48% shareholding comprising 33.1% direct and 14.9% via NorFinance subsidiary), FMO (Dutch entrepreneurial development bank, 27% shareholding), Rabo Partnerships (Rabobank cooperative’s impact investing arm, 25% shareholding), and NorFinance (Norfund’s 49.83% subsidiary). Dutch-domiciled (private limited company B.V. registered in the Netherlands) with an operating office headquartered in Cape Town, South Africa. Evergreen investment vehicle (no finite fund life) with a patient, long-term capital approach, providing significant minority equity stakes (typically 28%–59%) in sustainable, locally owned financial service providers across Sub-Saharan Africa. Norfund’s main vehicle for large-scale equity investments in African banks. Operational from 1 January 2017, beginning with US$660 million pooled assets transferred from the founding shareholders’ existing African financial institution holdings.
Arise’s core mandate is to partner with sustainable, locally owned financial services providers serving SMEs, the rural sector, and unbanked populations to strengthen effective, inclusive financial systems that contribute to economic growth and poverty reduction. Its evergreen structure means it does not retain excess capital and pays annual dividends to shareholders. Arise takes an active ownership approach, taking up board positions in investees, providing knowledgeable board members and dedicated experts, organising technical assistance programmes through shareholder-funded TA facility (Norfund, FMO, Rabobank), supporting growth strategies, delivering management services covering governance, marketing, innovation, compliance, risk management, and ESG adherence. The focus is on building strong, locally owned, top-positioned financial institutions serving retail, SMEs, rural clients, and previously unbanked populations through scale advantages, enabling stronger economic development contributions. The focus is on supporting financial institutions that lack sufficient capital from traditional providers, thereby achieving clear additionality.
Investment Amount
- Significant minority equity stakes: typically 28%–40% ownership providing board influence while maintaining local ownership character.
- Equity investments prioritised over debt; flexible capital deployment including bridge loans, shareholder loans, rights issues, new share subscriptions, secondary stake acquisitions.
- Ongoing growth capital provision for portfolio company expansion, acquisitions, and fitting investment/development profile.
- Support for subsequent fundraising, including bond issuances (Zanaco US$100 million Sustainability Bond intention), regulatory compliance, and third-party co-investments.
Target
- Sustainable, locally-owned financial services providers in Sub-Saharan Africa requiring long-term patient equity capital for growth and market leadership.
- Banks positioned as or capable of becoming top-three players in respective countries/markets.
- Financial institutions serving underserved segments: retail customers, small and medium enterprises (SMEs, particularly micro/small/medium enterprises MSMEs), rural sector, agricultural value chains, unbanked populations, clients without prior financial services access.
- Institutions demonstrating a commitment to expanding financial inclusion, job creation, and economic growth.
- Banks with sound fundamentals or potential for becoming financially sustainable contributors to economies where they operate. Entities requiring capitalisation support for regulatory compliance, balance sheet strengthening, and growth strategy execution.
- Financial service providers benefit from governance enhancements, management expertise, technical assistance, improved compliance functions, and adherence to ESG standards.
- Banks seeking strategic minority shareholders providing board expertise, continental African banking network access, technical capabilities, and development finance institution backing.
- Listed and unlisted financial institutions; preference for entities with strong local ownership, maintaining African character.
- Banks requiring acquisition support for distressed assets/consolidation opportunities (e.g., dfcu-Crane Bank transaction).
- Fintechs and non-bank financial institutions (NBFIs) are demonstrating sustainable business models that address financial inclusion gaps (two fintech investments are currently active, with expansion targeted).
- Institutions with agricultural finance expertise/potential given shareholder Rabobank’s Banking for Food strategy and agri-banking specialisation.
- Financial service providers in markets demonstrating GDP growth potential, improving regulatory environments, and expanding financial sector development despite challenging economic conditions.
- Entities positioned to leverage the mobile money revolution, digital banking transformation, and fintech innovation.
- Banks serving landlocked countries, resource-rich economies, post-conflict/recovery markets, and emerging middle-income nations.
- Institutions requiring currency risk management, political risk navigation, and economic volatility resilience building.
