Business Support enhances the
development effects of our investees
About Business Support
Norfund’s Business Support facility was established in 2000 based on a mutual recognition by the MFA, Norad and Norfund for the need for technical and professional assistance in relation to investments in the private sector in developing countries.
The main objective of Business Support is to strengthen the sustainability and developmental effects of Norfund’s investments. It is therefore an important instrument to exercise responsible ownership, in line with Norfund’s investment strategy, and a way to support our investments in high-risk sectors, markets and segments.
Business Support interventions adhere to the annual assignment letter from the MFA, Norwegian development policy priorities, the OECD/DAC criteria, and Norfund’s investment strategy. The facility is earmarked Norfund’s portfolio companies, and indirect investees, as well as prospects. For this grant-based financing, portfolio companies take up to 50% of the project costs.
Interventions focus on sustainability and value add by securing that important issues for which portfolio companies do not have the resources or knowledge, can be addressed and resolved. Projects are furthermore important tools to create awareness on important topics and have constructive conversations about controversial issues. These projects often strengthen the relationship between Norfund and our investees, showing commitments beyond financing.
Finally, as part of the application procedure for Business Support projects, the four cross-cutting issues for Norwegian development assistance are assessed: human rights, anti-corruption, climate and environment, and gender equality. The facility is an instrument to deliver on value add in these areas. For this reason, Business Support is incorporated in Norfund’s Gender Position and Climate Position.
Cross-cutting issues
The cross-cutting issues in Norway’s development policy – human rights (SDG 8), anti-corruption (SDG 16), gender equality (SDG 5), climate and environment (SDG 13) – are assessed in all our projects.
