Business Support’s activity in 2024 showcased a broad and diverse portfolio equipped to meet the varied challenges and opportunities faced by our investees.
Direct investees supported
Indirect investees supported
Active projects
Approved projects
In 2024, Norfund approved 21 projects, marking an increase from the 17 projects approved in 2023. However, the total funding decreased from 19.7 MNOK in 2023 to 17.3 MNOK in 2024. This shift reflects a trend toward smaller-scale projects, to try to maintain reach and deliver on a growing demand for technical assistance, despite a reduced budget. Business Support continued to reach over one quarter of Norfund’s direct investments.
Investment areas
Approved amount per investment area
During the year, Norfund’s Business Support demonstrated broad engagement across all departments and regions. Of the approved projects, 24% were cross-departmental, addressing recurring themes relevant to multiple portfolio companies. A notable example is the new pilot project on Road Traffic Management, which accounted for nearly half of the cross-departmental initiatives. Road traffic presents a significant risk in the markets in which Norfund invests, and affects our investees’ employees, contractors and the communities in which they operate. The remaining cross-departmental projects primarily focused on Diversity, Equity, and Inclusion (DEI), including programs designed to upskill board members, management, and employees on these critical topics.
Project types
Active portfolio per project type
A significant highlight of 2024 was the expanded support to Technical Assistance Facilities (TAFs). These facilities are managed by our Fund Managers and target Norfund’s indirect investees. TAFs received 49% of Norfund’s total project funding, showcasing their critical role in enhancing impact and leveraging local expertise. They are uniquely positioned to reallocate grants to portfolio companies, enhancing their capacity, performance, and contribution to sustainable development.
By supporting TAFs, Norfund extends its reach across various industries, sectors, regions, and fund sizes. While TAFs support a diverse range of recipients, the majority are SMEs and ventures that often otherwise faces financial barriers. In 2024, TAF initiatives impacted 108 indirect investees. Notably, all departments except Renewable Energy engaged in TAF-supported projects. This is due to lack of fund investments in this sector.
Read more about Norfund's support to Technical Assistance Facilities
Geographical split
Active portfolio per region
Aligned with Norfund’s KPI of committing 50% of investments to Sub-Saharan Africa, Business Support exceeded this target, with 70% of the active portfolio allocated to the region. Of those 70% allocated to Sub-Saharan Africa, the highest receiving regions are East Africa (51%) and West Africa (31%), followed by Southern Africa (12%) and Central Africa (6%). It should be noted that even though the committed projects in Asia are relatively low, there are 11 active projects in this region, and we also experienced an increase during the year.
Project categories
Business Support projects are categorized into three categories, Enterprise Improvements, Local Community Development and Project Development. In 2024, all approved projects fell under the “Enterprise Improvement” category, involving a broad range of activities such as Environmental & Social (E&S) and OHS improvements, corporate governance & business integrity, gender equality, and climate-related solutions. It is worth noting that categorization can be complex, as projects often span multiple themes. For instance, initiatives supporting smallholder farmers, classified under “Enterprise Improvement,” could also align with local community development. Consequently, no new projects were initiated under “Local Community Development” or “Project Development” categories. However, previously initiated local community development projects were concluded, such as two renewable energy projects in collaboration with Enel in India.
Project Enel Thar & Coral
Local community development
Large-scale infrastructure projects, such as renewable energy plants, can profoundly impact the nearby communities. Especially in underdeveloped and rural areas where local communities are expected to withstand most of the impacts during construction and operation of renewable energy projects that will ultimately evacuate power to urban centres. In many cases, these communities already face significant challenges, such as poverty, inadequate infrastructure, and limited access to basic services like education, healthcare, and clean water. Properly understanding the community context, building good local community relations and supporting positive community outcomes is crucial to avoiding mistrust and resistance from the local communities, and to contribute to benefit sharing and sustainable development.
Sustainability and community development are integral parts of Norfund’s approach to renewable energy projects. Norfund’s Business Support is a tool that can enhance this. Evidence of this can be seen in the Enel Thar and Enel Coral wind and solar power plants in India. Since 2020, prior to construction start, Norfund’s Business Support and technical assistance from Enel have funded several local community initiatives in both projects that were identified through an extensive Community Needs Assessment.
Through this grant funding, over 200 community development initiatives in 32 villages were implemented over a four-year period, directly benefiting more than 4,200 households. These efforts included improving local schools by adding sanitation facilities, digital learning tools, and playgrounds, and enhancing education for students. Women's empowerment programs trained women in skills like stitching, literacy, and kitchen gardening, while several households gained better access to water through rainwater harvesting systems. Additionally, numerous farmers received livestock vaccinations to strengthen their livelihoods.
Actively engaging communities from the beginning and addressing their most urgent needs is critical for successful project development. This is also reflected in the “Evaluation of Norfund’s investments in renewable energy”, where the Enel projects are mentioned as examples of secondary impact in Norfund’s renewable energy investments.