Scalable Enterprises

Development Mandate

Norfund focuses our direct investments in scalable enterprises in Sub-Saharan Africa, partnering with robust industrial or financial counterparts. Our investment segments include agribusinesses and manufacturing. Growing sustainable scalable enterprises drives industrialization, economic growth and job creation. 

Key achievements in 2024

Scalable Enterprises

978
MNOK

committed

7,300
new jobs

created by companies in the agribusiness and manufacturing portfolio*

3,150
BNOK

increase in revenue in the agribusiness and manufacturing portfolio*

*Excluding EFP

Funds

587
MNOK

committed

12,000
new jobs

created by companies in the funds Norfund is invested in*

7,650
BNOK

increase in revenue in the funds Norfund is invested in*

*Only covering funds within the scalable enterprise portfolio

Jobs are vital to reducing poverty, generating income and enabling the development of skills. In most countries, private enterprises create the majority of jobs. This is especially true in developing countries, where more than 90% of jobs are in the private formal and informal sectors. 
 
The current macroeconomic situation in many markets in Africa is challenging. The challenges have increased with inflation, reduced access and aid budgets across the world being cut and diverted to regions. Providing patient capital and contributing to economic growth in developing countries is therefore crucial. 
 
The agribusiness sector employs a large share of the Sub-Saharan population. This sector is highly labor intensive. However, the sector remains underdeveloped in terms of productivity and participation in the most value-adding activities in global value chains. Investing in businesses throughout the agribusiness value chain can enable job creation, increase competitiveness, enable import substitution and economic growth in the countries where Norfund invests. Supporting and enabling agricultural production on the African continent is also critical to improve food security. 
 
Similarly, manufacturing holds great potential as an enabler of economic growth and transformation in Africa. Very few countries have developed their economies without developing a strong manufacturing base. 
 
In Africa, more than 80% of the jobs are within the informal sector. This means that the workers are unregistered, have no benefits such as insurance or sick leave schemes and have limited access to training. As such, it is crucial to develop formal job opportunities and ensure that these are quality jobs where workers’ rights are protected. 
 
Norfund’s investments in scalable, sustainable businesses help to create jobs, generate government revenue and provide the goods and services that people need. 

Primary agriculture takes up a large share of the value chain in Africa, so investments in other parts of the value chain are especially needed. The African Development Bank projects that Africa’s food and agriculture market could grow from US$280 billion annually in 2023 to US$1 trillion by 2030, highlighting the sector’s immense potential. 
In several regions in Africa, the export landscape is dominated by primary products (raw materials). Local manufacturing and processing industries can generate employment opportunities and retain more economic value within the region. 
Lack of finance is a significant obstacle to business growth. 
 
Growth capital, sector expertise and investors who are willing to take risks are needed to unlock the potential of scalable enterprises in developing countries. 

Norfund invests in businesses both directly and through funds. Our direct investments are focused on scalable enterprises within agribusiness and manufacturing in Sub-Saharan Africa. These investments are always made in collaboration with strong industrial or financial partners. 
 
As a direct equity investor, Norfund acts as a responsible owner. We assist developing businesses in becoming robust and sustainable while supporting their growth strategies. Norfund also provides advice to identify and mitigate environmental and social risks. 
 
Fund investments enable us to reach a broader range of businesses and sectors together with fund managers with more local knowledge and business insight than we have capacity to do on our own. Investments are funneled through four different strategic areas called (1) large cap funds, (2) SME-funds, (3) venture funds and (4) purpose funds. The large cap funds create jobs and growth through established and well-run companies with a potential to further scale and expand its business activities. SME funds access smaller businesses that traditionally don’t have sufficient access to the capital markets. Venture funds support the establishment of new businesses, most often with a technological approach to their markets which enable them to create new and innovative business models. Lastly, purpose funds target fragile states and areas in developing countries where private capital is most scarce, and where our investments are highly additional. 

Strategic ambitions

Norfund has defined the following ambitions for scalable enterprises for the strategy period 2023-2026:

  • Create 80,000 jobs through direct investments and funds, whereof 10,000 jobs created in direct investments in agribusiness and manufacturing
  • 19 billion NOK revenue increase, where 3 billion revenues created in direct investments in agribusiness and manufacturing

Investments and results in 2024

By the end of 2024, Scalable Enterprises accounted for 27.4% of Norfund’s total portfolio with a total of 37 direct investments and 70 fund investments.

1,566
MNOK

committed in 2024

11,823
MNOK

committed in total SE portfolio

Photo credit: Agventure

Investments per region

Sub-Saharan Africa is the only region where we make direct investments in agribusiness and manufacturing. Our staff in the regional offices in South Africa, Kenya and Ghana are an integrated part of the team working on these investments, contributing across the investment process.

Investments per region in 2024

Total portfolio per region

Highlights of 2024

4

new investee companies

4

new fund investments

6

follow-on investments

Irvine

In September 2024, Norfund announced an 18 million USD equity investment in the chicken producer Irvine’s. Irvine’s is a well-established actor in the industry with over 60 years of experience. The investment is done to finance Irvine’s expansion of chicken and chicken feed in Kenya and Tanzania.

Chicken and eggs are an available and relatively affordable source of protein. A fast-growing population increases the demand in many African countries. Irvine’s hatches and sells chicken and feed to smallholder farmers, which accounts for 70% of the chicken production on the African countries. They also provide technical assistance and training to smallholder farmers, of which 70% are women. 

Photo credit: Irvine

The investment will finance a modern grandparent farm and a feed mill in Tanzania, as well as a hatchery in Kenya. It will increase production, be closer to the market and reduce reliance on imports. The expansion is estimated to create 200 direct jobs in addition to increased income for farmers. The new feed mill will procure maize and soybeans from local farmers, providing further income and strengthening regional agricultural value chains.  

Kim-Fay

In September 2024, Norfund announced a 5.5 million debt investment in Kim-Fay East Africa to support the construction of a new recycling facility. 

Kim-Fay is today heavily reliant on importing virgin paper, which they process and sell in their East African markets. With the new recycling facility, expected to be completed in 2025, the company will use recycled wastepaper sourced from Kenya in the production of products. This is a significant step in the direction of a circular economy whilst reducing both import dependency and environmental impact.  

Photo credit: Kim-Fay

The company aims to create around 300 permanent jobs in connection with the recycling facility. About 100 will be located at the facility, while the rest of the jobs will be generated through the collection and transport of wastepaper and other support functions. 

One of the goals of Kim-Fay’s expansion is to make important household products such as toilet paper, baby wipes and diapers affordable to lower-income groups. The demand for hygiene products is rapidly increasing, driven by a growing middle class in the region.  

Excelsior Vietnam Fund II

In December 2024 Norfund committed 15 million USD to Excelsior Vietnam Fund II. Norfund was an investor in the predecessor fund which has performed remarkably well, investing in small and medium sized businesses in Vietnam. We conducted a thorough due diligence survey which confirmed the good job the manager has been doing with their investee companies focusing on growth opportunities for the selected companies. Moreover, key people in the organization have further developed their abilities and we believe they are in an even stronger position to deliver positive change in the companies they invest in with accompanying good financial results.  

TNB Aura II

In December 2024 Norfund committed 10 million USD to South-East Asian venture fund TNB Aura II, which also was a re-up of our investment in their predecessor fund. The manager focusses its activities in Vietnam, Indonesia and the Philippines, and have developed a model where they combine a top-down approach where they study the business opportunities which are most likely to be adopted in “their” markets with a bottom-up approach focusing on founder quality. Their approach has served them and us well in their previous fund, and we believe a renewed commitment in the team will help new businesses to flourish in the relevant markets. 

Scalable Enterprises portfolio

InvestmentCountryInvestment yearSectorInstrumentOwnership shareDomicileCommitted (MNOK)
African Forestry Impact Platform (AFIP)Regional2023Forestry and loggingFunds 38%Singapore764.7
Development Partners International IIIRegional2019Investment fundsFunds 5%Guernsey402.9
AgDevCoRegional2022Agriculture, forestry and fishingEquity 8%United Kingdom395.6
AfgriSouth Africa2024Crop and animal production, hunting and related service activitiesLoans 0%South Africa360.7
AfricInvest Fund IVRegional2020Investment fundsFunds 7%Mauritius309.6
Vantage Mezzanine Fund IV - USDRegional2021Sector-agnostic fundFunds 13%South Africa260.9
Helios IVRegional2021Investment fundsFunds 8%Guernsey253.3
Navis CLMVRegional2020Investment fundsFunds 17%Cayman Islands252.1
Meridiam Africa Fund IIRegional2020Investment fundsFunds 4%France227.0
Alterra Africa Accelerator FundRegional2021Investment fundsFunds 16%Mauritius225.3
ECP Africa Fund IVRegional2022Investment fundsFunds6%Mauritius223.2
Adenia Capital VRegional2018Investment fundsFunds 5%Mauritius223.0
Phatisa Food Fund 2Regional2021Agriculture, forestry and fishingFunds 14%Mauritius211.3
Irvine LimitedMauritius2024Crop and animal production, hunting and related service activitiesEquity 35%Mauritius200.0
Verod Capital Growth Fund IIIRegional2019Investment fundsFunds 11%Mauritius194.1
Nouvelle Mici Embaci (NME)Ivory Coast2023Manufacture of paper and paper productsEquity 26%Ivory Coast173.4
FIPA IIRegional2016Investment fundsFunds 38%Luxembourg170.9
Excelsior Vietnam IIVietnam2024Sector-agnostic fundFunds 15%Singapore170.3
Navis Asia Credit FundRegional2024Sector-agnostic fundFunds 11%Singapore170.3
European Financing Partners SAGlobal2006Investment fundsLoans Equity8%None168.9
African Rivers Fund IVRegional2023Sector-agnostic fundFunds ?Mauritius167.7
Vietnam Investments Fund IVVietnam2021Investment fundsFunds 18%Cayman Islands165.6
KV Asia Fund IIRegional2020Investment fundsFunds 7%Cayman Islands164.7
CASEIF IVRegional2022Agribusiness fundFunds 26%Canada159.7
Openspace Ventures IIIRegional2018Investment fundsInvestment funds8%Cayman Islands153.0
Hela Investment HoldingsRegional2022Manufacture of textilesLoans 0%Mauritius151.7
Cepheus Growth Capital FundEthiopia2018Investment fundsFunds 20%Mauritius148.7
Balaji EPZ LimitedKenya2023Manufacture of textilesLoans 0%Kenya145.8
African Rivers Fund IIIRegional2021Sector-agnostic fundFunds 19%Mauritius143.3
Openspace Venture Fund IVRegional2024Sector-agnostic fundFunds 8%Cayman Islands141.4
Agri-Vie IIRegional2017Investment fundsFunds 11%Mauritius139.5
OH EcosystemsNigeria2023Crop and animal production, hunting and related service activitiesLoans 0%Delaware136.2
FES LimitedRegional2020Crop and animal production, hunting and related service activitiesLoans Equity 23%Mauritius127.9
Nawiri Group Ltd.Regional2013Other tourism activitiesLoans Equity 32%Mauritius127.9
GroFin SGB Fund Limited PartnershipRegional2015Investment fundsFunds 19%Mauritius125.6
Kagera Sugar LimitedTanzania2020Crop and animal production, hunting and related service activitiesLoans 0%Tanzania124.1
Fanisi Capital Fund IIRegional2017Investment fundsFunds 43%Mauritius123.7
Miniplast LimitedGhana2023Manufacture of rubber and plastics productsLoans 0%Ghana119.2
Lilongwe Dairy (2001) LimitedMalawi2020Crop and animal production, hunting and related service activitiesEquity 25%Malawi117.1
Seba FoodsZambia2021Manufacture of beveragesLoans 0%Zambia113.5
TNB Aura Fund IIIRegional2024Sector-agnostic fundFunds 12%Singapore113.5
Excelsior VietnamVietnam2020Manufacture of beveragesFunds 19%Singapore113.5
Novastar Ventures Africa Fund IIIRegional2023Sector-agnostic fundFunds United Kingdom113.4
SAMANUEthiopia2022Manufacture of food products Equity 8%Mauritius113.3
AFMF: ASEAN Frontier Markets FundRegional2021Investment fundsFunds 20%Singapore112.1
Norrsken22 FundRegional2023Sector-agnostic fundFunds 5%Sweden111.2
Valency International Trading SARLIvory Coast2022Agriculture, forestry and fishingLoans 0%Singapore110.5
ANBSouth Africa2023Crop and animal production, hunting and related service activities Equity 0%South Africa107.9
Ascent Rift Valley Fund IIRegional2020Investment fundsFunds 9%Mauritius106.6
Marginpar GroupRegional2018Crop and animal production, hunting and related service activitiesLoans Equity26%Mauritius101.4
MvuviRegional2024Fishing and aquacultureEquity 44%Mauritius99.3
Cambodia Laos Myanmar Development Fund IIRegional2015Investment fundsFunds 16%Singapore98.3
TerramarRegional2022Wholesale trade, except of motor vehicles and motorcyclesEquity 45%Mauritius95.0
MOF IIMyanmar2018Investment fundsFunds 14%Cayman Islands90.3
Novastar Ventures East Africa FundRegional2013Investment fundsFunds 13%Mauritius90.3
Sundry FoodsNigeria2019Manufacture of food productsEquity 16%Nigeria83.4
NeofreshRegional2017Crop and animal production, hunting and related service activitiesLoans Equity 33%Mauritius80.8
TNB Aura Fund IIRegional2022Investment fundsFunds 11%Singapore75.0
CASEIF IIIRegional2014Agribusiness fundFunds 24%Canada74.6
Continental Blue Investment (CBI) Ltd.Ghana2022Manufacture of other non-metallic mineral productsEquity 10%Ghana73.8
Ascent Rift Valley Fund LtdRegional2013Investment fundsFunds 13%Mauritius71.7
Spear Africa Holding IIRegional2017Investment fundsFunds 19%Mauritius70.7
Redsun Raisins and NutsSouth Africa2022Manufacture of food productsEquity 23%South Africa70.0
Novastar Ventures Africa Fund IIRegional2020Investment fundsFunds 7%Mauritius69.3
Vertical Agro (Sunripe & Serengeti Fresh)Regional2014Crop and animal production, hunting and related service activitiesLoans0%Mauritius69.0
Neoma Africa FundRegional2008Investment fundsFunds 11%Mauritius67.8
Kinyeti Capital LtdSouth Sudan2012Other financial servicesEquity 49%South Sudan67.5
CORECORegional2012Other financial servicesFunds 22%Delaware67.4
Synercore Holdings Proprietary LimitedSouth Africa2022Manufacture of food productsLoans Equity 39%South Africa62.9
Kim FayKenya2024Manufacture of paper and paper productsLoans0%Kenya62.4
EcoEnterprises Partners III, LPRegional2018Agribusiness fundFunds 5%Ireland59.4
Vantage Mezzanine Fund IV - ZARRegional2021Investment fundsFunds 6%South Africa53.7
Fundo de Investimento Privado-AngolAngola2009Investment fundsFunds 26%Luxembourg53.4
Freight in TimeRegional2015Transportation and storageEquity24%Mauritius53.1
CarDekho SEAIndonesia2023FintechEquity3%Indonesia51.1
BPI Africa LLCRegional2015Investment fundsFunds 17%Mauritius51.0
Frontier FundBangladesh2010Investment fundsFunds 11%Cayman Islands50.9
Africa Health Fund (Aureos)Regional2011Investment fundsFunds 10%South Africa44.8
Lona GroupSouth Africa2022Crop and animal production, hunting and related service activitiesEquity17%Mauritius43.8
Aureos South Asia Fund (Holdings)Regional2006Investment fundsFunds 24%Mauritius42.1
GroFin Africa FundRegional2008Investment fundsFunds 0%Mauritius39.8
Oasis Africa FundRegional2017Investment fundsFunds 10%Ghana39.0
African Century Infrastructure Services Ltd.Regional2014Other service activitiesLoans Equity20%Mauritius38.0
Nyama World Malawi LtdMalawi2017Crop and animal production, hunting and related service activitiesLoans0%Malawi37.5
Solon Capital HoldingsRegional2020Investment fundsFunds 30%Mauritius35.8
Nordic Horn of Africa Opportunities FundSomalia2018Investment fundsFunds 11%Canada35.5
ACI Motors LtdBangladesh2021Manufacture of motor vehicles, trailers and semi-trailersEquity3%Netherlands35.4
Lake Harvest GroupRegional2013Fishing and aquacultureLoans0%Mauritius33.5
Frontier Fund IIMozambique2016Investment fundsFunds 10%Cayman Islands30.8
African Century Real Estates Ltd.Myanmar2015Construction of buildingsEquity21%Mauritius29.5
Frontiir Co. Ltd.Regional2019Information service activitiesEquity2%British Virgin Islands26.9
Afrinord Hotel InvestmentsRegional2005HotelsLoans Equity20%Denmark21.9
Vantage Mezzanine Fund IIRegional2011Investment fundsFunds 5%South Africa21.6
Voxtra East Africa Agribusiness IniRegional2011Agriculture, forestry and fishingFunds 30%Norway20.6
Neoma South-East Asia Fund IIRegional2010Investment fundsFunds 2%Canada20.4
Agri-VieRegional2010Agriculture, forestry and fishingFunds 9%South Africa20.2
APIDC Biotech FundIndia2005Investment fundsFunds 8%Mauritius16.0
Antler East Africa Fund IRegional2020Investment fundsFunds 11%Cayman Islands16.0
Associated Foods Zimbabwe (AFZ)Zimbabwe2016Manufacture of food productsLoans 0%Zimbabwe15.9
Aureos Southern Africa FundRegional2003Investment fundsFunds 25%Mauritius7.5
Africado Ltd.Tanzania2009Agriculture, forestry and fishingEquity33%Mauritius4.5
Aureos East Africa FundRegional2003Investment fundsFunds 20%Mauritius3.9
CASEIF IIRegional2007Agribusiness fundFunds 14%Bahamas3.7
Katapult AfricaRegional2022Investment fundsFunds 17%Rwanda2.5
Aureos West Africa FundRegional2003Investment fundsFunds 26%Mauritius1.9
Angola Capital Partners LLCAngola2009Investment fundsEquity 48%Delaware1.4
Evolution One FundRegional2009EnergyFunds 7%South Africa1.2
Lafise Investment ManagementBahamas1999Financial institutions fundEquity 20%Bahamas0.02