In 2019 the Storting established a special scheme that enables Norfund to make risk capital available in the most demanding markets, particularly in vulnerable states and in the least developed countries (LDCs), where access to risk capital is limited. The scheme is to be used for projects with higher risk than investments in Norfund’s ordinary portfolio, and is to be administered as a separate scheme. The Storting granted NOK 25 million to the scheme for 2020 (NOK 25 million in 2019). At the end of 2020, NOK 1.8 million remained to be allocated, while NOK 27.1 million had not yet been disbursed.

In addition Norfund received NOK 25 million (NOK 105 million in 2019) in grant resources[[ in the previously established scheme which are to be used to increase the developmental effect of Norfund’s investments through operational improvements and local community development, and to develop new projects in sectors and countries with particularly high risk levels. Support may, for example, be provided for training and transfer of expertise, health and equal opportunity programmes, workers’ rights, improvement of internal control, corporate governance and energy efficiency. The resources are treated as current liabilities, and undisbursed amounts are included in Norfund’s liquid assets. When costs are met from the resources, the liability is reduced by an equivalent amount. At the end of 2020, NOK 36.1 million remained to be allocated, while NOK 76.9 million had not yet been disbursed.

The grant fund earmarked for projects in the Balkans has primarily taken the form of loans to finance companies. At the end of 2020, unused resources relating to the Balkans consisted of three outstanding loans totalling EUR 2.9 million, and one equity investment of EUR 0.3 million.

In Proposition no. 23 S to the Storting for 2017, resources were granted to the Nordic Horn of Africa Opportunities Fund. The resources are to be used to enable the establishment of an investment fund for small and medium-sized enterprises in Somalia. This type of investment is highly risky, and the grant resources are used as buffer capital to protect other investors against losses.
The buffer capital is a crucial instrument for attracting investors. The fund is the first of its kind in Somalia, and is expected to have significant development effects.

As of 31.12.2020, no resources remained in the Nordic Hon of Africa Opportunities Fund[[, but there is still a possibility of having some previously granted resources reversed in the future.

Unused Resources: NorfundUnused Resources: Balkan
(Figures in 1000s of NOK.)31.12.202012.12.201931.12.202031.12.2019
Carried over from previous year106 8985 48511 6395 557
Received during the year50 000130 00000
Corrections grant resources7 448000
Total receipts164 346135 48511 6395 557
Income001 207376
General follow-up00-345-360
Project development:-2 408-2 97600
Boost and support project development effects-7 924-10 21500
Local investment funds
Follow-up costs00-134484
Loans / investment projects-11 263-14 3494 8795 583
Total disbursements-22 758-28 5874 3995 707
Overspending covered by Norfund
Non-disbursed resources141 588106 89817 24711 639
Total non-disbursed resources at 31.12.2020158 835