New strategy for Development Mandate

Setting the direction for the next four years.

Developing economies, still reeling from the effects of the pandemic and the macroeconomic impacts of Russia’s invasion of Ukraine, are confronted with an increasingly uncertain outlook, intensified by the effects of climate change. The convergence of these events has created difficult conditions in developing countries, causing progress towards achieving SDG1, “No poverty”, to falter for the first time in three decades. 

Norfund’s 2019-2022 strategy has proven resilient even in these unprecedented circumstances, exhibiting flexibility in adapting to the challenges of developing markets. We achieved record commitments every year and supported our investees through difficult periods, while also managing the biggest sale in Norfund’s history, SN Power. This demonstrates our commitment to being a responsible minority investor and circulating capital. As the current strategy period comes to a close, Norfund has developed a new strategy to ensure continued delivery on our mandate in an increasingly challenging global landscape. 

The new strategy, approved by the Norfund board in December 2022, is anchored in the fund’s mandate, informed by the UN Sustainable Development Goals, and reflective of the priorities of the Norwegian government’s development assistance policy. Leveraging our position as a responsible minority investor, the new strategy builds upon the elements of the previous period to ensure continuity and build upon our strong track record and competence.  

“Norfund’s strong performance has demonstrated the resilience of our strategy. Going forward, we will stay true to our four investment areas and core countries, whilst strengthening the recycling of capital to maximise impact.”

Ylva Lindberg, Executive Vice President Strategy & Communication 

At the heart of the new strategy for the development mandate are the four investment areas (Renewable Energy, Financial Inclusion, Scalable Enterprises and Green Infrastructure), 30 core investment countries, quantified impact ambitions for each investment area and portfolio KPIs to ensure additionality. Norfund believes that targeted asset allocation is the best way to deliver impact, and the strategy underpins this. Compared to the last strategy period we aim to strengthen catalysation of private capital to developing countries and have a more systematic approach to circulating capital. Our work on climate will also be strengthened and is an important priority during the next four years.