Writing this in the early months of 2025 and looking back at 2024, I can’t help but feel that although the past year had its hurdles, we are now facing an even rockier path.
Several countries have reduced their aid budgets significantly, and investors are pulling back from their commitments to the energy transition. We are also seeing trade wars hampering growth. Facing these developments, our mission may grow more challenging, but not less important. We now need to channel our energy into real action, rather than succumbing to the situation.
I just got back from a trip to Ghana and Nigeria. The entrepreneurial creativity and drive across such diverse sectors as recycling of plastics, agri-processing, fintech and distributed energy keeps on impressing me. The resilience and optimism these entrepreneurs are demonstrating gives me hope and renews my drive as CEO of Norfund.
We remain steadfast in our mission – to create jobs and improve lives by investing in businesses that drive sustainable development. In 2024, we increased our investments by NOK 1.2 billion, reaching NOK 7.7 billion. This growth, driven by strong returns, allows us to invest nearly three times the amount we receive from the Norwegian government. Despite a global decline in direct investments in developing countries, Norfund’s investments grew by 18%.
Our mandates—the Development Mandate and the Climate Mandate—guide everything we do. Under the Development Mandate, we continue prioritizing investments in the Least Developed Countries, with Sub-Saharan Africa remaining our focal point. Through the Climate Mandate we invested 1.7 billion focusing on projects in countries heavily reliant on fossil fuels, such as South Africa, Indonesia, and India. The impact in terms of avoided emissions and the positive financial returns gained increased attention over the past year, as stakeholders and media recognize the fund’s unique effectiveness as a climate tool.
Additionally, we were entrusted with NOK 250 million by the Norwegian Government to invest in Ukraine, supporting reconstruction and economic resilience through the Nansen program. This task exemplifies the trust placed in Norfund’s experience in high-risk markets and our ability to mobilize private capital.
Investing in challenging markets is possible—and profitable. Our experience shows that private investors often overestimate risks. Norfund helps bridge this gap, mobilizing capital where it’s needed the most.
Building on our 2024 results, we are prepared to scale and deepen our impact even further in 2025. By partnering with entrepreneurs and emerging businesses, we aim to create more jobs, reduce poverty, and contribute meaningfully to global climate goals.
It is an honor to lead this organization and to witness the tangible difference we are making in people’s lives.
Tellef Thorleifsson
Chief Executive Officer
May, 2025