Through an investment in Tropo Farms, West Africa’s leading tilapia farm, Norfund will help create jobs and improve food security in Ghana.

The investment in Tropo Farms is made through the company AgDevCo, which specializes in the development of African agricultural businesses. Norfund became a co-owner of the company in February 2022.

The USD 10 million investment will help expand tilapia production in Ghana

“The investment will help to create new jobs while at the same time strengthening the production of an important protein source in Ghana,” says Ellen Cathrine Rasmussen, EVP Scalable Enterprises, who represents Norfund on the board of AgDevCo.

Tropo Farms is the leading tilapia fish producer in West Africa and among the largest in Sub-Saharan Africa. The company employs 917 people and supplies fish to the local market through about 3,000 market traders, the majority of whom are women.

Ghana has one of the highest fish consumption rates in Africa, consuming over 800,000 tonnes per year. This investment will boost the country’s aquaculture industry to satisfy the growing local demand for high quality, affordable fish as a sustainable alternative to wild catch and imports.

AgDevCo’s investment of $10m will finance the construction of a modern processing facility and other production equipment. This will increase the company’s capacity to 30,000 tonnes within five years, contributing to improved nutrition and food security in Ghana.

“This loan is a major milestone for Tropo Farms. It will expand our logistics and distribution network while bringing more benefits to the communities where we operate. We are pleased to partner with AgDevCo who brings flexible long-term capital to support our growth, as well as agribusiness expertise,” said Francisco Murillo, Tropo Farms CEO.

Tropo sees opportunities for further aquaculture projects in West Africa, which it plans to pursue with AgDevCo and other strategic co-investors.

Abler Nordic and Norfund have each provided an $8 million USD senior loan in local currency to Premier Credit, a Kenyan microfinance institution focused on lending to micro, small, and medium enterprises (MSMEs) often overlooked by traditional banks.

This combined investment of $16 million USD aims to boost access to affordable finance for unbanked entrepreneurs in Kenya, aligning closely with Norfund and Abler Nordic’s shared goals of empowering low-income households and creating jobs.

“Supporting MSMEs with accessible, flexible working capital is even more critical than ever to safeguard livelihoods and drive job growth, amid the rising cost of living and post-COVID economic challenges. Premier Credit’s commitment to helping businesses in Kenya succeed is commendable, and we look forward to creating even greater value together with their strong management team,” said Godfrey Kaindoh, Investment Director and Africa Lead at Abler Nordic.

MSMEs in Kenya play a vital role in driving economic growth and reducing poverty, and contribute close to 40% to the country’s GDP. With over 7.4 million businesses employing nearly 15 million people, which accounts for over three-quarters of the workforce in Kenya, MSMEs are pivotal in creating jobs. Despite this, many MSMEs struggle to access working capital to sustain and grow their businesses due to stringent bank lending criteria and lack of credit history and collateral.

Since starting in 2013, Premier Credit has enabled over 600,000 MSME entrepreneurs, particularly in remote areas and informal settlements, to access affordable financing through its nationwide presence. Close to 45% of Premier Credit’s customers are women and over 60% of customers live in rural areas. The company has shown impressive growth, maintaining profitability and a strong loan portfolio, with a 90% customer retention rate due to a relationship-based approach, fast turnaround times and flexible repayments.

“Premier Credit Kenya is honored to partner with Abler Nordic and Norfund, and this investment will strengthen our capacity to serve the diverse needs of micro and small businesses in Kenya,” said Gideon Nyaga, Managing Director of Premier Credit. “The funds will be allocated responsibly, ensuring that they have a meaningful impact on the businesses and communities we serve. As Premier Credit Kenya continues to grow and expand its reach, it remains committed to providing financial solutions that empower entrepreneurs, stimulate economic growth, and enhance livelihoods across Kenya.”

In addition to MSME loans, Premier Credit offers salary loans for households, pension loans, school development loans to low-cost private schools, and asset financing for water tanks and biodigesters, which convert organic waste into biogas for cooking and lighting, and bio-slurry for use as fertilizer.

The funding from Abler Nordic and Norfund will help Premier Credit continue to expand its geographic reach, increase its MSME portfolio, and diversify into sectors like education and agricultural value chains, beyond the current focus on trade and transport. Norfund and Abler Nordic will further assess how they can use Business Support and grants for technical assistance projects, to support the entrepreneurs and MSMEs beyond finance.

Norfund and I&M Bank have partnered to finance Kim-Fay East Africa Limited’s new recycling facility in Nairobi. This investment will create jobs, reduce waste and strengthen Kim-Fay’s position as a leading player in hygiene and household products in East Africa. 

Norfund has invested USD 5.5 million in the form of a senior loan to Kim-Fay to support the construction of a new recycling facility. This loan, combined with financing from I&M Bank, is an important strategic step for the company. 

Kim-Fay is heavily reliant on importing virgin paper, which they process and sell in their East African markets. With the new recycling facility, expected to be completed by 2025, the company will use recycled wastepaper sourced from Kenya in the production of products. This is a significant step in the direction of a circular economy whilst reducing both import dependency and environmental impact. 

Creating local jobs

The company aims to create around 300 permanent jobs in connection with the recycling facility. About 100 will be located at the facility, while the rest of the jobs will be generated through the collection and transport of wastepaper and other support functions.  

Expanding the access to affordable hygiene products

One of the goals of Kim-Fay’s expansion is to make important household products such as toilet paper, baby wipes and diapers affordable to lower-income groups. The demand for hygiene products is rapidly increasing, driven by a growing middle class in the region. 

Milestone for Kim Fay

Kim-Fay primarily operates in Kenya but also exports to Uganda, Tanzania, and Rwanda, and continues to expand its presence in East Africa. 

Kim-Fay’s CEO, Raj Bains, expresses great satisfaction with the investment: 

“We’re thrilled about Norfund and I&M Bank’s investment, which will facilitate the development of the reverse integration facility which will pave the way for Kim-Fay to enter a major sub-segment in the industry. We extend our gratitude to all stakeholders who contributed to this transaction, with special thanks to IMBC for their crucial support. This milestone represents a significant step toward transforming wastepaper, that would otherwise be discarded as garbage, into value added tissue paper and establishing a fair and transparent circular economy that will benefit all stakeholders, including bringing a very good product at an affordable price to the market.” 

Ukraine needs more private investment to meet the enormous needs created by Russia’s warfare. The Norwegian government is now providing funding from the Nansen Programme for Ukraine for Norfund to invest in the country. 

Russia’s war against Ukraine has caused enormous material damage to homes, schools, roads and energy infrastructure. Ukraine therefore needs investments to rebuild what Russian attacks have destroyed, and to build a sustainable economy in a free and independent Ukraine.  

Much of this must be financed with private capital, as public funds will not suffice and because much of the reconstruction will take place in areas with commercial potential. 

– For many years, Norfund has succeeded in investing where many others do not dare, and where they can really make a difference. In Ukraine and in other developing countries, the gap between needs and available financing is growing. It is not possible to reduce the gap without having the private sector on board. Norfund’s investments make this possible,” says Anne Beathe Kristiansen Tvinnereim, Minister of Development Cooperation. 

For 2024, the government proposes to set aside NOK 250 million for Norfund investments in Ukraine. The money comes from the Nansen Support Programme for Ukraine. The government aims to continue this effort in the coming years. 

The private sector accounted for 70% of Ukrainian GDP before the full-scale invasion, and it has a key role in maintaining economic activity. Norfund prioritizes equity investments, which is key to be able to operate and develop vital and sustainable projects. 

– We appreciate the confidence in Norfund’s ability to invest and deliver results in demanding markets. We look forward to getting started and contributing to help Ukraine in the difficult situation the country is facing,” says Tellef Thorleifsson, CEO of Norfund. 

Through an investment in the chicken producer Irvine’s, Norfund aims to create jobs while contributing to food security on the African continent.

Read the joint press release here

Norfund is investing 18 million USD in Irvine’s production of chicken and chicken feed in Kenya, Tanzania, Botzwana and Mozambique.

Chicken and eggs are an available and relatively affordable source of protein. A fast-growing population increases the demand in many African countries.

Selling day-old chickens to smallholder farmers

Irvine’s hatches and sells chicken and feed to smallholder farmers, which accounts for 70% of the chicken production on the African countries. They also provide technical assistance and training to smallholder farmers, of which 70% are women.

Feed mill based on locally produced mays and soybeans

The investment will finance a modern grandparent farm and a feed mill in Tanzania, as well as a hatchery in Kenya. It will increase production, be closer to the market and reduce reliance on imports.

The expansion is estimated to create 200 direct jobs in addition to increased income for farmers. The new feed mill will procure maize and soybeans from local farmers, providing further income and strengthening regional agricultural value chains. 

Irvine’s is a well-established actor in the industry with over 60 years of experience.

“These funds will fuel the next chapter of our growth, enabling us to continue driving our purpose of changing lives in Africa by providing accessible, high-quality protein while empowering local businesses. This investment into the poultry industry goes beyond Irvine’s by improving our ability to supply and service our growers, thereby empowering them to uplift their communities but also drive sustainable economic growth, ensuring that nutritious protein reaches every market we serve,” said Craig Irvine, Group CEO of Irvine’s Group.  

The Norwegian development finance institution, Norfund, has invested 10 million USD in the Honduran bank Banco Popular. The bank specializes in microfinance and lending to small and medium sized enterprises.

Despite making progress in reducing poverty, Honduras still ranks as one of the poorest and most unequal countries in the region. As of 2023, 51.3% of the population lives below the national poverty line. Only 45% of the population has a bank account.

Mountains cover about three quarters of Honduras, making it complicated to reach the approximately 40% of the population that resides in rural areas with financial services. Banco Popular has about half of their clients in rural areas and serves them through its 41 offices around the country.

Micro and small businesses are key job creators and play a crucial role in driving the economic engine in Honduras. Norfund’s loan will support the bank’s medium-term financing, which will allow it to offer longer-term financing to micro and small business clients, helping to boost their growth potential and providing them with greater sustainability in their business models.

The investment is a senior loan given in the local currency, Honduran Lempira.

“Financing microfinance institutions in local currency is essential as it mitigates foreign exchange risk, safeguarding both the institutions and their clients from currency fluctuations that could otherwise result in financial instability.” Added Maria Esther Boquin.

The shareholders of Banco Popular consist of the Dutch and Belgian Development Finance Institutions, Triple Jump and Incofin.

Norfund and French global environmental company Veolia are launching a joint development and financing platform to contribute to green industry in Africa through sustainable solutions for water, energy and waste management.

Veolia employs 218,000 people on five continents in the management of water, waste and energy. Last year, the group provided 113 million people with drinking water, 103 million people with sanitation and treated of 63 million tons of waste, with a total turnover of EUR 45.3 billion. In Norway, the subsidiary Veolia PET Norge is responsible for the recycling of plastic bottles.

Now the French giant is working with Norfund, the Norwegian government’s investment fund for developing countries, to contribute to green industry in Africa.

The partnership aims to develop, finance, build and operate solutions that offer low-carbon energy, optimized water cycle and sustainable waste management.

“The plan is to invest in projects ranging from €3 million to €50 million, and offer turnkey solutions through performance-based contracts, particularly targeting companies in resource-intensive sectors such as food and beverage, materials, chemicals and mining,” says Rasmussen.

Veolia has extensive experience from Africa, and together with Norfund, the company aims to support sustainable long-term growth through industrial development across the continent.

Norfund today announces its support with a $20 million commitment to a new Apis fund – the Apis Growth Markets Fund III. Apis Partners LLP (“Apis”) is a private equity firm investing in high-growth, tech-enabled financial services companies globally.

Apis’ previous two Growth Markets Funds, which collectively raised commitments of around $850 million, have a proven track record of delivering both impactful and financial results. The new Apis fund will continue to focus on pivotal trends such as Cashless Payments, Embedded Finance, and Financial Inclusion, all of which enhance livelihoods in Africa and South/Southeast Asia.

Norfund’s fintech investment strategy

Recognizing the crucial role of Financial Technology (“FinTech”) in improving financial inclusion and reaching economically disadvantaged individuals and small businesses, Norfund broadened its investment focus in 2022 to include FinTech companies alongside banks, microfinance and other financial institutions. Norfund now actively supports financial inclusion-oriented FinTechs engaging in digital lending, neobanking, embedded finance, insurtech, and payment solutions across sub-Saharan Africa and Southeast Asia.

Norfund typically provides direct investments in high-quality FinTech companies, offering between $5-20 million in loans and equity to firms in their early growth stages, generally from Series A onwards. Since establishing the FinTech Investment Strategy, Norfund has invested in Wave Money, Lula Lend, Amartha, Funding Societies, and AwanTunai. Besides direct investment, Norfund also works with FinTech funds such as Quona Capital and Integra Partners, to extend its reach to promising early-phase FinTech companies.

Collaborating with Apis to augment Norfund’s FinTech investment strategy

Norfund’s investment in Apis Growth Markets Fund III represents a strategic decision to further diversify its portfolio into a broader set of mature and high-growth FinTechs that support individuals, entrepreneurs and established businesses with affordable and accessible financial services in emerging markets. Norfund’s commitment will help Apis reach its target fund size, especially at a time when fundraising has been challenging globally and particularly for emerging markets managers. The partnership will also provide Norfund with valuable insights from a leading industry investor.

“By supporting companies that create new jobs and finance public welfare through taxes, we see that we are helping to fight poverty in an effective, sustainable and scalable way,” says Tellef Thorleifsson, CEO of Norfund.

220 million unemployed people were looking for work in low- and lower middle-income countries in 2023, according to ILO.

At the end of 2023, as many as 625,000 people were employed in the companies in which Norfund has invested under its development mandate, either directly or through funds. Figures from investees Norfund has received reports from for two years in a row, show a net increase in new jobs of a record 9 per cent, or 37,200 new jobs, from 2022 to 2023. This is an increase of 52 per cent from 2022, when the figure was 24,500.

“Paid work is the sustainable way out of poverty, and in a challenging year for many poor countries, we are pleased to be able to report a record increase in the number of jobs,” says Tellef Thorleifsson, CEO at Norfund.

Norfund also invests in access to energy and financial services, crucial prerequisites for businesses to develop that create a large number of indirect jobs. The annual report shows that in 2023, 420,000 new households gained access to renewable energy through companies in Norfund’s portfolio, and the financial institutions in the portfolio served 11.5 million more customers.

Increased tax revenues for developing countries in debt crisis

In total, companies in the portfolio under Norfund’s development mandate paid a record NOK 32.7 billion in taxes in 2023. Of this, NOK 21.2 billion was in Africa. A comparison of the figures from the companies Norfund received reports from over two years shows an increase in total tax paid of NOK 3.6 billion.

Total tax revenues from the companies in the portfolio account for more than half of total Norwegian aid in 2023, while the increase in tax revenues from 2022 to 2023 alone is almost NOK 2 billion more than what Norfund was transferred to its development mandate in the same year (NOK 1.68 billion).

“Increased tax revenues are crucial for governments in poor countries to become independent of aid and be able to afford to provide basic services such as education, healthcare and infrastructure development, while at the same time being able to service debt”

Tellef Thorleifsson

The annual report shows that the return from Norfund’s development mandate was 1.8 per cent (IRR) in investment currency, giving an average return per year since inception of 4.8 per cent. In NOK, the return was 4.1 per cent in 2023, giving an average return of 7.8 per cent since inception.

The Climate Investment Fund, managed by Norfund, is investing USD 20 million (NOK 210 million) in Candi Solar, a company that supplies solar energy to small and medium-sized enterprises in India and South Africa.

“There is great untapped potential in these countries in giving smaller businesses access to affordable and clean energy from solar power,” says Sofie Kamsvåg, Investment Manager at Norfund.

India and South Africa have need more energy as a result of strong growth in consumption, and coal is the largest source of energy. The Climate Investment Fund has previously invested in large solar and wind power plants in these countries, and in a company that supplies renewable energy to larger companies in India.

Now, for the first time, the fund is investing in a company aimed at smaller businesses. The USD 20 million investment in candi solar is part of a larger funding round totalling USD 38 million for the company, which was established in 2018. Kyuden International and STOA account for the rest of the sum.

Candi solar has developed financial solutions specifically aimed at such businesses and can offer various deals tailored to their needs, including risk-sharing leases, credit repayments and loans.

“Our innovative solar and battery solutions and pioneering financial products accelerate our purpose of powering a more sustainable planet, one rooftop at a time”

Fabio Eucalipto, Co-founder and Director at candi solar.

The companies candi has delivered solar solutions include everything from textile industry in India to one of South Africa’s largest rugby stadiums in Durban.

Access to affordable capital contributes to avoided emissions

Candi solar has so far delivered solutions with an average capacity of 600 kWp to over 100 companies in the two countries. In total, they have contracts for 112 MW of solar energy. With the capital from Norfund and the other partners, the company has set a target of building a further 200 MW in solar projects over the next two years.

The total expected energy production of 571 GWh will avoid 493,000 tonnes of CO2 annually, calculated based on the two countries’ current and planned energy mix. This is equivalent to the emissions of 250,000 Norwegian fossil-fuelled cars.

– The rapidly growing demand for energy in India and South Africa means that there is a major shortage of the capital needed to base growth on renewable energy. Solar energy delivered directly to smaller businesses is an important part of the solution,’ says Kamsvåg.