Tax revenues

Norfund portfolio companies contribute to sustainable development by paying taxes and fees to the countries in which they operate. 

Taxes paid in 2021


Total taxes paid by portfolio companies


Total taxes paid in Africa


Increase in total taxes paid by portfolio companies*

*In companies with two consecutive years of reporting

Development rationale

Domestic resource mobilisation is one of the most important ways to facilitate sustainable development. A tax base provides governments with essential resources to spend on infrastructure and public services, such as health, education and social protection. 

Norfund’s investments contribute both directly and indirectly to achieving SDG Target 17.1

Results 2021

Profitable businesses pay taxes to governments in the countries in which they operate. Taxes and fees are paid by Norfund’s portfolio companies and by companies in their value chains. 

In 2021, an amount equivalent to NOK 16.9 billion had been paid in taxes and fees by the companies in which Norfund is invested, both directly and through funds. This corresponds to 42% of the total Norwegian development aid in 2021. 

45 % was paid as corporate income tax and 55 % was paid as other transfers, such as sales taxes, withholding taxes, net VAT, royalties, license fees and social security payments. 

From the end of 2020 to the end of 2021, the total taxes and fees paid by companies with two consecutive years of reporting increased by NOK 1.84 billion. 


Taxes and fees in LDCs

Around 6.6 billion NOK was paid in taxes and fees by companies operating in Least Developed Countries (LDCs). 

About 77% of the taxes and fees paid by Norfund portfolio companies were paid by companies operating in Africa. Kenya, Ghana and Uganda alone accounted for 19%.  

Norfund’s tax policy

A responsible tax policy is fundamental to Norfund’s operations. Our tax policy is based on the principles of the Norfund Act of 1997, Norfund’s statutes and EDFI’s principles for responsible tax in developing countries. It sets out the principles that guide our approach to tax-related issues and what we expect from our portfolio companies and co-investors. 

The tax policy includes requirements regarding transparency, that Norfund’s investees shall pay taxes to the countries in which they operate and where the income occurs, and that third countries must only be used when necessary to meet the fund’s development priority of investing in high-risk markets and to protect the fund’s capital. 

In 2021 Norfund´s investments in funds increased, and hence so did the use of third countries. Norfund is actively tracking and monitoring the use of third countries.