26. March 2024
Despite challenging years marked by the pandemic, inflation and debt crises, Norfund’s committed portfolio has seen steady growth and had an increase of 19 percent in 2024.
In these turbulent times, Business Support is an important tool for Norfund to strengthen the development effects of our investment activities. We experienced an increasing demand for Business Support projects, reflecting a growing investment portfolio and increased focus on climate related projects. Being a responsible investor in challenging markets and sectors requires more than just finance. This technical assistance facility, financed by the Norwegian Ministry of Foreign Affairs (MFA), enables Norfund to assist investees in enhancing sustainability in the most challenging markets and sectors across the globe. Although Norfund experienced a reduction in funding for Business Support in 2024, the facility still managed to reach over one quarter of Norfund’s direct investees, prioritizing smaller projects and initiatives.
Norfund aims to be a responsible owner across all investment sectors, contributing with expertise, establishing sound corporate governance, and setting high standards for financial, and environmental and social (E&S) practices. Business Support is a key instrument for reaching Norfund’s direct investees to enhance their impact but also impacting indirect investees through supporting Technical Assistance Facilities (TAFs) managed by our Fund Managers. This approach enables us to reach even broader, as reflected in the case of AFMF’s Business Improvement Facility. The case on Gender Based Violence and Harassment (GBVH) training gives an example of an approach using programs to reach recurring needs for investees across sectors and markets, in this case with the objective of strengthening how investees identify and manage GBVH risks in the workplace.
Furthermore, we have strengthened our efforts on how we assist investees to assess climate risks and opportunities, as well as supporting their ambition to reach net-zero. Business Support continues to be an important tool to implement activities and initiatives in this area, assisting Norfund’s portfolio to take more informed decisions and implement necessary actions regarding their exposure to climate risk and their climate footprint.
With this report, I am pleased to present the results of Norfund’s Business Support portfolio in 2024.
Tellef Thorleifsson
Chief Executive Officer
March, 2025