Norfund

Norfund is Norway's state-owned development finance institution (DFI), established in 1997 with the overarching mission to create jobs and improve lives by investing in sustainable businesses in developing countries. Headquartered in Oslo, Norfund provides risk capital to enterprises in emerging markets where commercial investors are often reluctant to venture due to perceived high risk. Its core objective is poverty reduction through economic development, focusing on sectors and regions that can generate significant positive impact. Norfund operates as an active, strategic minority investor, aiming to contribute not only capital but also expertise and governance to its portfolio companies.

The institution's investment strategy is centered on providing equity and debt to businesses that demonstrate strong growth potential and align with sustainable development goals. Norfund primarily targets four key investment areas: renewable energy, financial institutions, scalable enterprises, and green infrastructure. Within renewable energy, it supports projects that increase access to clean power, while its investments in financial institutions aim to strengthen local financial markets and provide access to capital for small and medium-sized enterprises (SMEs). Scalable enterprises are selected for their potential to create jobs and foster economic growth, particularly in sectors like food and agribusiness, and manufacturing. Norfund's active ownership approach ensures it works closely with its partners to enhance operational efficiency and environmental, social, and governance (ESG) standards.

Norfund's geographic focus is predominantly on sub-Saharan Africa, which accounts for a significant portion of its portfolio, alongside select countries in Asia and Latin America. The institution seeks to invest in markets with high development needs but also significant growth opportunities. As of the end of 2023, Norfund's total committed portfolio amounted to approximately USD 3.5 billion (NOK 37.7 billion), reflecting its substantial scale and long-term commitment to development. For its typical equity investments in scalable enterprises and financial institutions, Norfund's first cheque sizes generally range from USD 5 million to USD 75 million. While it can participate in larger funding rounds, its initial direct equity contribution usually falls within this spectrum, with the potential for follow-on investments as companies grow. In 2023 alone, Norfund made new commitments totaling approximately USD 600 million (NOK 6.4 billion), demonstrating its continued active role in development finance.