Lack of access to finance is regarded as the most important constraint to the development and growth of businesses in low-income countries. Contributing to increased financial inclusion is a key priority for Norfund.
new clients served by direct investments
increase in lending to clients by direct investments
Norfund’s impact objectives
Norfund has the following impact objective for investments in financial institutions:
- Increasing the provision of financial services
- Increasing the provision of credit to clients
This enables economic growth and job creation in low- and middle-income regions and helps to improve living standards.
Increased provision of financial services
The direct investments in our portfolio provided financial services to around 72 million clients in total.
Portfolio companies with two consecutive years of reporting increased the total number of clients by 8.9 million (16% growth) during 2022.
The financial institutions we have invested in through funds provided access to financial services to an additional 20 million clients.
Increased provision of credit to clients
The combined loan book of the direct investments in our portfolio reached a total of 726 billion NOK by the end of 2022. Institutions with two consecutive years of reporting had increased their credit provision by 89 billion NOK (20% growth) during the year.
The total number of loans provided to clients by the direct investments in our portfolio was 7.6 million, including 5.1 million to retail clients, 1.3 million to microfinance clients and 365,000 to SMEs.
NOK in combined loan book
Increase in credit provision since 2021*
*For companies with two consecutive years of reporting
The financial institutions in which we have invested through funds have provided an additional 21 million loans to clients, at a combined value of 131 billion NOK. Institutions with two consecutive years of reporting increased lending by 12.5 billion NOK during the year.
Increased provision of deposits
The direct investments in our portfolio provided a total of 388 billion NOK in combined deposits to 37.7 million clients, of which 33.1 million went to retail and SME clients. Portfolio companies with two consecutive years of reporting increased the total number of deposits by 8.1 million (15% growth) during 2022.
The financial institutions in which we have invested through funds provided an additional 78 billion NOK in deposits to 7.8 million clients.