Norfund’s mandate is to assist in building sustainable businesses and industries in developing countries. We do this by providing equity capital and other risk capital. We contribute to economic and social development by helping to build sustainable businesses that would not otherwise be initiated because of the high levels of risk involved.
Norfund’s mandate is defined by the Norfund Act of 1997.
Norfund fights poverty by investing in Sustainable Businesses
The UN’s Sustainable Development Goal Number 1 is to end poverty. To achieve this, the development aid industry needs to focus on Sustainable Growth, Social Development, and Institution Building. According to Norfund’s mandate, we contribute to the achievement of this Goal by building sustainable economic growth.
An Additional Investor
Norfund’s investees contribute to economic and social development through the direct and indirect jobs they provide, the goods and services they offer, and the taxes they pay.
Norfund is an additional investor because we supply capital and competencies that are otherwise scarce or unavailable. We are able to make capital available in our target markets because we are willing to assume more risk than many other investors. We prioritise projects that have strong development effects. We enhance these effects through active ownership and through our Business Support Program.
A Catalytic Investor
According to the United Nations, private investment needs to grow by an additional $2.5 trillion per year to ensure that the Sustainable Development Goals are achieved by 2030. Mobilising private capital is a therefore an objective for Norfund. We work as a catalyst investor, leveraging partners, additional private capital, and expertise for our projects.