NewsFebruary 11, 2025

Abler Nordic exits Baobab, ushering in new growth opportunities with Beltone

We're proud to have been part of Baobab’s journey in expanding financial access for entrepreneurs and SMEs across Africa

Abler Nordic has signed an agreement to sell its full stake in Baobab Group (“Baobab”), a pan-African financial services provider empowering underserved small and medium-sized enterprises (SMEs).

The stake is being acquired by Beltone Capital, a wholly owned subsidiary of Beltone Holding (“Beltone”), a financial services provider listed on the Egyptian Stock Exchange. Following the acquisition of Abler Nordic’s stake and that of other selling shareholders, Beltone will take a majority share in Baobab.

Abler Nordic (formerly Nordic Microfinance Initiative) first invested equity in Baobab in 2016 through its Nordic Microfinance Fund III, seeing an opportunity to expand financial access for African entrepreneurs while generating solid returns for investors.

During Abler Nordic’s investment period, Baobab has achieved substantial growth, leveraging its scalable digital platform to expand its reach and efficiency. Now serving over half a million small businesses through its seven subsidiaries in Senegal, Côte d’Ivoire, Mali, Burkina Faso, Nigeria, the Democratic Republic of Congo (DRC), and Madagascar, Baobab is well-positioned for further growth.

“We sincerely thank Abler Nordic for their strong support and commitment to Baobab’s mission. Their contribution has been key in expanding financial access for underserved communities, creating a lasting impact. As they move on, we acknowledge their important role in our journey and the positive change they’ve driven. This marks the end of a successful chapter, but their legacy will continue to inspire us”, stated Philip Sigwart, CEO of Baobab Group.

As an active owner, Abler Nordic has led and contributed to multiple initiatives to create value at Baobab, including strengthening Baobab’s leadership team to drive long-term growth. Abler Nordic supported eight key projects through its Norad-funded Technical Assistance (TA) Facility, including HR development, social ratings, operational improvements, and e-learning.

Baobab’s digital and branchless banking, developed in part with support from Abler’s TA Facility, has helped make financial services more accessible, with 72% of customers accessing formal financial services for the first time.

The 'My Baobab' app enables easy account management, overcoming time and distance barriers, particularly in rural areas. More than 900 branchless agents—many of them young entrepreneurs—deliver banking services directly to underserved communities. This approach has contributed to Baobab providing more than EUR 1 billion in loans to small businesses in 2024 alone, with 49% of its customers being women and 34% under the age of 35.

In 2023, Abler Nordic and Baobab jointly commissioned a 60 Decibels survey of 290 Baobab Côte d'Ivoire customers. 92% said their income had increased, and 91% reported they were better able to reach their financial goals thanks to Baobab’s services.

“Having worked alongside the Baobab team for close to a decade, we've seen firsthand how the Company has empowered hard-working African entrepreneurs with access to financial services – helping them to start and grow businesses while improving their quality of life. As we pass the baton to Beltone, we're confident that their expertise will help Baobab continue to innovate and lead the way in financial inclusion across Africa, to the benefit of their end clients. We look forward to seeing the next chapter unfold!" said Arthur Sletteberg, Managing Director of Abler Nordic.

As a leading equity investor in financial inclusion in developing countries, Abler Nordic has invested over USD 42 million in Sub-Saharan Africa since inception in 2008. The exit from Baobab marks a strategic move for Abler Nordic as it continues to seek new investment opportunities that enable low-income households in developing countries to create better futures.

The deal was advised by Enexus Finance, and the transaction is subject to regulatory approvals.