Norfund has a new Regional Director for Southern Africa, Pindie Nyandoro. With a background from banking, Pindie is a self-described enthusiastic newcomer to the Development Finance world. Her long career with companies like Unilever, Standard Bank Africa, Stanbic Bank Zimbabwe, and Standard Chartered Bank has now brought her to Norfund. While visiting the Oslo office she talked to Communication Adviser Indigo Trigg-Hauger about her journey to the new position and what excites her about Norfund.

What drew you to Norfund? 

I think I’ve always admired DFIs from a distance. When you’re African, and working with banks, you hear a lot about DFIs. So when the opportunity came, there was this history [for me]. It’s something I’ve always wanted to do. It coincided with the fact that I liked the developmental, the impact side, that DFIs tend to have as part of their mandate. 

One of the Norfund values is “make a difference”. How do you think we can make the most difference? 

I think because I am African, Zimbabwean by birth, I believe that as a general rule there is just too much to be done and not enough people to do it. So Norfund is well placed to play a fairly significant role in changing lives within the continent. Especially when you look at the more mundane things that people take for granted. By that I’m looking at access firstly to infrastructure, so if you look at things like transport, energy, water, I think there’s a lot that Norfund has done, continues to do, and can do going forward. Changing lives, if I can call it that. 

“I think there is a lot that can be done in terms of just making sure that the impact is actually noticeable and we are able to build on that as opposed to making a difference and then leaving it at that and starting something completely different. Build on what has been done in the past in making sure that the level of impact is a lot bigger than maybe what we have achieved previously.” 

What are you most excited to work with? 

People. I am a people person. I find it very easy to mix and get along with people. I feel I learn more from talking to people, not just formally, like in meetings, but over a bite. I’ve been training for the past three days, and the amount of knowledge I’ve learned about Norfund as an organization, Norway as a country, and other places like Thailand, Costa Rica, the other countries where we have a presence has been absolutely amazing. This knowledge has come via informal channels like lunch time chats as opposed to sitting behind a desk or in a formal meeting. 

I’ve only been in Norfund for two weeks, but one of the most outstanding things that I’ve noticed about Norfund is the number of young people within this organization. And for me, having been, I’ll call it “around the world” a few times, I think there is so much to learn from them. Of course,  I also have a lot to impart, so hopefully it a win – win outcome! So for me the its all about people, and we work through people, we achieve through people. Building those bridges and networks is going to be excellent. 

I’ve been amazed at the level of warm welcome I’ve had. Although I’ve met people for just a few days or one week, it feels like I have known them for months or years. I feel at home. I want to thank everyone for the very pleasant welcome I’ve had. I’m looking forward to being part and parcel of this amazing family. 

Norfund has committed a 10 million USD local currency equivalent, senior loan to Finsocial, a payroll discount lender in Colombia. The loans offered by Finsocial are used by teachers and pensioners for starting small businesses, further education and housing. 

Finsocial has a 175 million USD loan portfolio, and 800 employees in 27 offices spread over 20 provinces in Colombia.  

Accessing capital via loans and equity investments is crucial to economic growth and for the development of businesses. For individual households, loans and savings facilities help to reduce economic vulnerability.

In Colombia financial inclusion is low at 46% and even lower for women according to the Global Partnership for Financial Inclusion.

Norfund will also work with Finsocial to help it even further develop its gender strategy. Norfund is part of 2X Collaborative, engaging actively with peers to deliver tangible results with our partners on the ground. Finsocial is already meeting a few of the 2x criteria and has become a part of the collaborative.  

A partnership with Australian company New Forests at the helm will take over Norfund investee Green Resources as the first acquisition in plans to scale sustainable forestry in Sub-Saharan Africa.

At COP26 in Glasgow Norfund, British International Investments and Finnfund announced a new partnership called The African Forestry Impact Platform (AFIP). Managed by Australian investment company New Forests, the partnership aims to scale up sustainable forestry in Sub-Saharan Africa, with the aim of raising 500 million USD over the next the next two to three years. 

The partners have now signed subscription agreements for their investment in the fund for US$200 million, and announced AFIP’s first acquisition, Green Resources, East Africa’s largest forest development and wood processing company. After a challenging period for the company, Norfund and Finnfund became the majority owners of Green Resources in 2019. Since then, the company has turned a large deficit into positive results.  

“We are very satisfied with the results of this challenging but successful turnaround. With a new owner that can bring both capital and competence, we can create more jobs and a positive impact on the climate”.

Tellef Thorleifsson, Norfund CEO

Scaling sustainable forestry in Sub-Saharan Africa  

Norfund and Finnfund will reinvest the capital from the sale of the company into the new platform, which will also receive fresh capital from the other partners. 

“Norfund has extensive experience with partnerships in both energy and finance where we have used capital and competence from various actors to garner bigger results than each actor could have achieved on their own. Now we are confident that we can do the same in sustainable forestry”, says Thorleifsson. 

The partnership will invest in sustainable forestry in Africa where the approach combines protection of existing natural forests alongside responsible extension of productive working forests and forest restoration in the region. 

Norfund is investing ZAR 365m (ca. NOK 220m) in wind farms in South Africa under the new Norwegian Climate Investment Fund. Three wind farms with a total capacity of 420 MW will be built by EDF Renewables, and Norfund is investing in the project through its partnership with H1 Capital.

When the project is up and running, it will deliver more than 1400 GWh per year. Given South Africa’s current energy sources, with a majority coming from coal, the project will avoid more than 1.3 million tonnes of CO2 emissions per year – equivalent to the yearly emissions from 700,000 petrol cars in Norway. 

“I am delighted to see how Norfund is able to quickly contribute to fill some of the enormous need for more capital to speed up the transition to renewable energy in South Africa through the new climate investment fund and thus give vital contributions to global efforts to limit the climate crisis”

Minister of International Development Anne Beathe Tvinnereim

The Coleskop, San Kraal and Phezukomoya wind farms, each with a capacity of 140 MW, will be located in the Northern and Eastern Cape provinces, giving a combined capacity of 420 MW. EDF Renewables is developing these projects with its local B-BBEE (Broad-based Black Economic Empowerment) partners H1 Capital and GIBB-Crede. Norfund’s investment will contribute to the financing of H1 Capital’s investments in the projects.  

EDF Renewables plans to commission its wind farms between mid-2024 and early 2025. Each farm will consist of 26 wind turbines with a height of 124 m and a blade length of 83 m. The installations are expected to be capable of meeting the electricity needs of at least 193,000 South African households.  

Enormous need for investments in South Africa 

The 3 projects will sell power to Eskom, the South African utility. Wednesday this week, Eskom chief executive officer Andre de Ruyters said that to overcome the current energy crisis, the country will need to spend close to R1.2 trillion (725 billion NOK) by 2030 to ensure it has enough generation, transmission and distribution capacity to meet the demand, and that renewable energy is the quickest and most cost-effective way to resolve the country’s crisis. 

2 billion invested from the Climate Investment Fund 

With this new investment, Norfund will already have put more than 2 billion NOK to work under the new climate mandate that became operational in May.  

“The need for capital to cover the growing demand for power with renewable sources is enormous in all the priority countries for the climate investment fund, so we will very quickly be able to put to work the 10 billion that have been set aside over the next five years”

Tellef Thorleifsson, CEO of Norfund

The Climate Investment Fund will allocate 10 billion NOK over the next five years, with 1 billion coming from Norfund’s capital and 1 billion from the state budget each year. Since Norfund can advance parts of the fund that originate from Norfund’s own capital, the total amount in the fund could already reach 2.8 billion NOK by the end of 2022. 

Scatec, Norfund and partners will develop a 350 MW hydropower plant in Malawi. The project will increase security of supply, reduce energy shortages and help secure the country against floods.

Scatec today signed, on behalf of its joint venture with Norfund and BII, a binding agreement with the government of Malawi, EDF and the IFC to develop the Mpatamanga hydropower project.

The hydropower plant, which will be located on the Shire River in Malawi, will be composed of a 309 MW peaking plant and a 41 MW downstream plant. The facility will provide much needed energy during peak demand hours of the day and overall grid stability, with its ability to ramp up or down production to meet actual demand.

The development of hydropower that can balance affordable, but unstable, solar and wind energy is crucial for an energy sector based on renewables, and Malawi is dependent on increased power production and more stable energy access to develop the jobs needed to fight poverty

Tellef Thorleifsson, CEO Norfund

The project has been developed over several years by Norfund-owned SN Power, with support from Norad. Norfund sold SN Power to Scatec last year. As part of the agreement, a joint venture was set up where Norfund retained 49% of the company’s portfolio in Africa, and in June BII, the UK development finance institution, also joined the partnership. In this project, the joint venture together with EDF will be majority shareholders and own 55% of the project, while the Government of Malawi will own 30% and IFC 15%.

Mpatamanga will supply electricity to approximately two million people, and the partners estimate that it will avoid 520,000 tonnes of CO2 emissions per year. The power plant will also help to control the river and reduce the risk of floods, which are increasingly affecting Malawi. In January, flooding from the Tropical Storm Ana destroyed more than 70,000 hectares of crops, belonging to more than 90,000 households, further weakening Malawi’s food security.

The new Norwegian Climate Investment Fund, managed by Norfund, and KLP, Norway’s largest pension company, have entered into an agreement to take a 49% stake in a 420 MW solar power plant in India developed by Italian Enel. With the investment, Norfund has within a short time put a total of NOK 1.8 billion to work to avoid greenhouse gas emissions through the new fund.

Norfund and KLP together will take a 49% stake in the solar energy project Thar Surya 1 for approximately 2.8bn INR. The 420 MW_DC   (300 MW_AC) new solar power plant is being built in Rajasthan in India by Italian Enel Green Power.

“This summer with extreme heat and drought in many parts of the world has shown us, more clearly than ever, there is no time to waste in the fight against climate change. That is why it is such good news that in record time the climate investment fund’s money is already working for these crucial investments in renewable energy in developing countries”

Minister of International Development Anne Beathe Tvinnereim

The climate investment fund will allocate 10 billion NOK over the next five years, with 1 billion coming from Norfund’s capital and 1 billion from the state budget each year. Since Norfund can advance parts of the fund that originate from Norfund’s own capital, the total amount in the fund could already reach 2.8 billion NOK by the end of 2022.

Enormous need for investment in India 

When the project is up and running it will deliver more than 750 GWh per year. Given India’s current energy sources, with a considerable proportion coming from coal, the project will avoid more than 615,000 tonnes of Co2 emissions per year – equivalent to the yearly emissions from 316,000 petrol cars in Norway. 

“We are extremely glad to have this large-scale investment in place. If India is to base its energy needs on renewables there is an enormous need for capital, which we are contributing to in part with the new climate investment fund,” says Tellef Thorleifsson, CEO of Norfund. 

According to a new report from BloombergNEF (BNEF) India needs 233 billion USD in investment to meet its goals for development of wind and solar energy by 2030. IEA’s “‘India Energy Outlook 2021’” shows India will have the greatest need in the world for growth in the energy sector.

“When there is such a large need it is important that we use public money in a way that also triggers the mobilisation of private capital. Having KLP on board with Norfund in this investment is an inspiring example,” says Tvinnereim. 

“KLP and Norfund have been investing in developing countries together for a decade, and we are very excited to enter a market like India where there is such a great need for renewable energy. Cutting emissions to meet the Paris Agreement will require phasing out coal. KLP has a goal to increase climate-friendly investments by at least six billion NOK every year. The effect on the environment is positive, and provides returns to our owners,” says Sverre Thornes, CEO at KLP. 

Strategic cooperation with Enel 

Norfund has entered a strategic investment partnership with Italian Enel Green Power in India.

“This is the first investment we have done with Enel, and together we have great ambitions to contribute with similar investments in India in the years to come,” says Thorleifsson. 

Relevant articles:

Despite the Covid-19 pandemic hitting the developing countries hard and global direct investments in developing countries falling by 12% in 2020, Norfund’s investments increased by 20% compared with the previous year to a record high NOK 4.8 billion. Read more about Norfund’s financial results, development effects and organization in our website report.

You can also download our annual report as a PDF:

Norfund invests USD 8 million in Integra Partners Fund II, a fund aimed at empowering tech entrepreneurs to drive access and affordability to responsible financial services in Southeast Asia.

Launched in 2017, Integra Partners is a multi-disciplinary sector-focused venture capital fund manager based in Singapore (“Integra”). Norfund is now investing USD 8 million in Integra’s second VC fund, Integra Partners Fund II LP (“The Fund”), which focuses on investing in early-stage technology companies operating in Southeast Asia in the financial services, insurance and healthcare sectors.

Norfund’s investment will provide capital to early growth stage FinTech companies and hence improve access to financial services for underserved population in some of Norfund’s core countries. With its proven track record and specific sector focus, Integra is able to leverage upon its unique position in Southeast Asia’s venture community to identify and access early-stage opportunities in target markets.

The Fund will focus on investments in FinTech, InsurTech, and digital health, three sectors that Integra believes are inter-dependent, enabling them to take advantage of cross-sector opportunities.

The investment is part of a Norfund strategy to support tech-enabled financial inclusion companies at the early growth stage.

We are honoured that Norfund has chosen to commit to Integra Partners Fund II. We look forward to our partnership, and thank the entire Norfund team for their support in driving access and affordability of responsible financial services and digital health in the region

Chris Kaptein, Managing Partner at Integra Partners

1 out of 4 don’t have access to a bank account

Access to high quality, affordable financial services is essential for social and economic development, gender equality, resilience, and livelihoods. According to new data from the World Bank, only 76 percent of the global population have a bank account —and 71 percent of people in developing countries.

There is also a gender gap – in 2021, 74 percent of men but only 68 percent of women in developing economies had an account.

At the same time, more than 90% of the world’s population has a mobile phone, and the report shows that mobile money already has made a difference in increasing account ownership. FinTech can also increase the breadth of available financial services.

Great opportunities in FinTech

Norfund sees great opportunities in FinTech companies and have recently also done several direct investments. This month, Norfund committed a loan to Wave Mobile Money, a FinTech company that operates in Senegal and Côte d’Ivoire. Last year, Norfund committed 65.4 million NOK to Amartha, a peer-to-peer lending platform in Indonesia with a focus on funding rural women, and 41.3 million NOK was committed in a loan to Lula Lend, a technology driven financial institution with a credit scoring model that enables them to more efficiently assess the risk of SMEs in South Africa.

Norfund and KLP to invest in CrossBoundary Energy to expand the company’s C&I portfolio across Africa.

Norfund and KLP, Norway’s largest pension company, will together invest USD 40 million in equity in CrossBoundary Energy (CBE), a leading developer, owner, and operator of commercial and industrial renewable energy systems in Africa. The investment will be made through the joint company KLP Norfund Investments AS.

This commitment will allow CrossBoundary Energy to further scale its investments in renewable energy solutions for commercial and industrial businesses across Africa.

The $40M commitment is a continuation of Norfund and KLP’s earlier investments in the C&I sector and endorses the scale and maturity of the distributed generation sector in Africa.

CrossBoundary Energy provides tailored, fully financed renewable energy solutions to its corporate customers, allowing them to avoid upfront capital expenditure and technical risks, whilst still benefitting from cheaper, cleaner, and more reliable power.

CrossBoundary Energy is currently delivering a portfolio of $188M in projects for 30 corporate customers across 14 countries in Africa, comprising 150 MWp of solar PV assets, 50 MWh of battery energy storage assets, and 12 MW of wind assets.

CrossBoundary Energy is the renewable energy provider of choice for a number of market-leading companies present in Africa, including Unilever, Diageo, Rio Tinto, Heineken, and AB InBev.

We are very excited to welcome Norfund and KLP as investors. Their commitment is aligned with our belief that the business sector across Africa should be able to benefit from cheaper, cleaner and more reliable power. This investment validates CrossBoundary Energy’s position as a trusted provider of customer-centric renewable energy solutions to the African business community. We look forward to drawing on Norfund’s significant experience as seek to deliver an operational portfolio of over $300M in assets within the next 5 years.

Pieter Joubert, President and Chief Investment Officer, CrossBoundary Energy

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