Norfund contributes to creating jobs both directly in portfolio companies and indirectly through the companies’ value chains.
Results in 2024
new jobs created in portfolio companies*
total jobs in portfolio companies
*In companies with two consecutive years of reporting
Creating and sustaining jobs is vital to reduce poverty. Jobs generate household income, are a basis for taxation, provide security, and can enable knowledge and skills development. It is a prerequisite that the jobs are in businesses that are financially viable to sustain the impacts. Investing in businesses and creating jobs encourages the transfer of technology and skills, equipping the workforce with the tools needed for innovation and productivity improvements. In essence, investing in job creation in developing countries can be seen as a catalyst for a virtuous cycle of growth, poverty reduction, and enhanced social stability. Norfund invests to create jobs in several different ways. We contribute to direct job creation in our portfolio companies, while inducing indirect job creation in the companies’ supply chains. Lastly our investments contribute to job creation through access to financial services and increased energy access and supply.
In 2024, global unemployment remained steady at a historical low of 5%, a trend projected to continue into 2025 according to ILO. However, there are significant disparities across regions and demographics. For instance, youth unemployment persists at a notably higher rate of 12.6% globally, and in developing regions the share of workers in the informal sector has increased over the past years. Currently, more than half of the global workforce are not adequately covered by social security arrangements, legal protection or workplace safety measures, making them part of the informal labor sector, according a report by ILO. This is a challenge that is particularly prevalent in many of Norfund’s markets, with 87 % of the jobs in Sub-Saharan Africa being within the informal sector and 63 % in households living on less than 3.65 $ a day, according to ILO. The need for formal job creation in our markets highlights the critical importance of Norfund's investments aimed at creating and sustaining decent jobs. By channelling funds into high-growth sectors and businesses, Norfund not only addresses the immediate need for formal and decent employment but also lays the foundation for sustainable development, stimulating economic growth and fostering resilience in the face of ongoing labour market challenges.
Promoting decent jobs
Norfund promotes job quality using the IFC Performance Standards (PS) on Environmental and Social Sustainability in our investment processes.
Results 2024
Record high number of jobs in Norfund portfolio companies
By the end of 2024, the companies which Norfund invested in employed a record high number of 712,000 full-time equivalents (FTEs), either directly or through funds. 76% of these were permanent jobs.
The below figure shows the number of jobs directly supported through the companies Norfund has invested in during the last three years. Figures are not directly comparable across years due to variations in the portfolio composition from new investments and exits. However, we see that since 2022 the number of direct jobs supported through our investments has increased by 39 %. Over the same period, Norfund’s committed portfolio has grown by 34 %.
Total jobs in Norfund’s portfolio companies
Note: The figures reflect changes due to new investments and exits, with large sales significantly impacting total figures. From 2023 onward, figures include jobs supported through the Climate Mandate. As these figures represent full-time equivalents, actual employment is higher. All figures for development effects are not attributed to the share of investment held by Norfund. Figures therefore represent total jobs at portfolio companies.
Considering companies that Norfund has been invested in during two consecutive years allows for calculation of the jobs that are created. From the end of 2023 to the end of 2024, Norfund’s portfolio companies (with two consecutive years of reporting) reported a net increase of new jobs of almost 8 %, or 41,400 new jobs. This is a record high number.
Jobs created
Jobs created are also affected by the composition of the portfolio in terms of size of companies and sector distribution.
Job distribution by demographics and region
More than 477,000 jobs were held in companies operating in Africa, making up almost 67 % of total employees in Norfund’s portfolio companies. 22 % were employed in companies in Asia, 10 % were employed in companies in Latin America and 1% were employed in companies operating globally.
More than 192 000, 27%, of the jobs were in Least Developed Countries (LDCs).
Female employees in Norfund portfolio companies
Youth employees in Norfund portfolio companies
Jobs per region
Norfund generates impact in multiple ways, including job creation, expanding access to financial services, and improving energy availability, while simultaneously achieving financial returns on its investments. Norfund’s investments not only drive measurable social benefits but also, on average, ensure financial viability, demonstrating that positive development outcomes and strong financial performance can go hand in hand. From 2023 to 2024, the investments in Norfund’s portfolio delivered an estimated return, measured as IRR, of 8.4 % measured in investment currency and 19.6 % measured in NOK.