Questions and answers are divided into two sections.
Click on the subject link to access the section of interest directly.

Common questions
Specific questions related to direct investments

Common questions

Specific questions related to direct investments

What is the purpose of Naventure, why can’t African companies turn directly to local banks to get a loan?
Naventure started since there is a vast need to provide loans for small businesses that need to grow. The financial market does not function in the same way as for example in Europe, both individuals as well as small businesses face difficulties in obtaining loans from the banks. There may be obstacles ranging from being able authenticate him/her-self, bureaucracy, corruption etc. Naventure does not only fascilitate loans but also provides counseling / coaching in business issues, ethical, social and spiritual issues

Do you make any good if you lend money to companies through Naventure?
Yes absolutely. Helping businesses with the finansing so they can grow and provide jobs for more employees provides a positive impact on the communities where the companies operate, see also Naventures vision and mission. At the same time, one should not see this as the charity / aid but lending on commercial terms.

Why should I invest / lend / money by Naventure instead of investing in for instance on the stock exchange market?
That is a question that everyone must answer for him/her-self, but if you want to get good returns on invested capital and at the same time work for a positive development in Africa, investing through Naventure is a good option.

How do I know that a company that makes loans is profitable and can manage the loan in a good way so that money does not just disappear into the bleeding business?
The companies are reviewed from both a financial and ethical standards and assessed to be healthy companies. At the time of the loan, a review is made of the business plan and the most recent annual reports. Navigators Africa has lent money to companies for about 13 years with very few losses and over the past eight years and have not made any credit losses. Further we keep continuously close contact with the companies.

How do I know that companies receiving loans are of high ethical standards?
The companies are audited by Naventure from both a financial and ethical standards, and what social responsibility the companies take for the local community and employees. Further, Naventure requests the companies to insure their vehicles, real estate, etc. which is not to be taken for granted in Africa.

When was Naventure established?
Naventure Nordic registered in January 2015 but the business of lending money to entrepreneurs and small businesses started by the Navigators Africa for about 13 years ago.

Can Naventure help out to establish business relations with the African market?
Yes absolutely. Naventure assists Scandinvian and African companies to develop their markets. Naventure has an unique opportunity to lower the threshold for Swedish small and medium-sized enterprises to enter the African market through our network of contacts.

Who are the owners of Naventure?
Naventure Nordic is registered in Sweden and has currently 10 shareholders, see Board-members and share-holders. Naventure Nordic started off as a wholly owned subsidiary of Naventure Ltd which is registered in Kenya, which in turn is owned by Navigators Africa but Swedish banks didn’t accept African owners so the company got new owners/shareholders from April 2016.

Who are the board-members of Naventure Nordic?
See board board members.

How much salaries are paid to board and employees of Naventure?
Currently all work is done within Naventure Nordic on a voluntary basis with regards to the management of the portfolio etc. However in case of e.g. of a consultancy assignments for a Swedish company that would like to establish business relations with Africa, we may charge for this. Terms and conditions to be agreed upon case by case.

How much profit does Naventure do?
Naventure Nordic has the intention to only get coverage for our (low) administration costs.

Can I get involved in any other way to contribute to a positive development in Africa than to lend money?
Yes, since in several cases the most important help to the companies has been counseling/coaching from investors with relevant business background and experiences to the companies in Africa with concrete advices. We have seen examples where strong relations has developed between an investor and a company in Africa.
We also have an Internet community where you can share experiences and knowledge in various fields, see how you can network with African entrepreneurs.


Direct investments

Common questions

What is the minimum amount I can save/invest?
10000 SEK.

What is the maximum amount I can invest?
We have not set any upper limit.

How high is the interest rate?
Interest rate level varies by type of company and region but is usually between 10 and 20% per year. Interest rate is set out in the contract between the company and the lender. Naventure Nordic is expected to typically get 20% from lender of the interest received from the company to cover Naventure’s administration cost. It means the lender gets 80% of the company’s interest rate. One example, assume 15% interest rate from the company, it means that the lender gets 15%*0.8=12%.

Isn’t the interest rate unethical high – usury?
Naventure’s policy is to offer an interest rate that is in the lower interest range for the market in the concerned country. To provide a significantly lower interest rate would result in an unfair competitive advantage over other companies. The interest rate is also determined by the level of risk.

When is the money transferred to a company in Africa?
When the sum of the expected individual investments matches the required amount for a specific investment, we will ask the investors to make the transfer to Naventure’s bank-account and thereafter we make one common transaction to the receiving company’s account.
The expected contributions are indicated/promised in the Application of interest or agreed with us in other ways. On our website we will inform when there is a specific investment need.

How is the interest calculated?
The interest is calculated from the day the money is transferred from our account.

When can I get my money in return?
The duration of the agreement is determined of the promissory note, typically between three to five years.

How is the interest rate taxed?
The investor is obliged to pay tax on the received interest. For Swedish investors it is taxed as income from capital, for private persons 30%. Naventure may provide information to the tax authority.

How do I make my deposit? The instruction can be found here.
If I want to know more about the companies that are included in the portfolio, how can I do that? Each company is described separately, see investment opportunities

What type of loan is it and how often are the repayments made?
Typically, it is an annuity loan i.e. the sum of interest rate and repayment is equal at repayment, typically quarterly or half-year repayment. The exact terms are given by the repayment plan that is worked out for each company by Naventure.