In a year in which development aid was sharply reduced and investments in developing countries fell, Norfund went against the tide with record investments of NOK 8.4 billion in 2025.
“The needs are enormous, and we see major opportunities to make an effective difference through profitable investments,” says Tellef Thorleifsson, CEO of Norfund.
According to new figures from UNCTAD, global foreign direct investment (FDI) increased by 14 percent in 2025, reaching USD 1.6 trillion. Even so, investment in developing economies continued to decline – down 2 percent to USD 877 billion – for the third consecutive year. Low‑income countries were hit hardest, with three quarters of the least developed countries experiencing stagnation or a fall in capital inflows. In 2025, poor countries also saw major cuts in development aid.
“In a challenging global situation, we are pleased to be able to increase our contributions through profitable investments that create jobs, generate tax revenues and avoid emissions,” says Thorleifsson.
Thorleifsson recently announced that he will step down as CEO of Norfund this summer. Since taking up the post in 2018, Norfund’s total portfolio has more than doubled, reaching NOK 45.5 billion at the turn of the year.
“It is incredibly meaningful to see that, year after year, we have been able to scale up our contributions through investments that have also proven profitable. At a time when development aid worldwide is under pressure, it is especially important to use funds efficiently, mobilise private capital and deliver sustainable results,”
Tellef Thorleifsson
CEO in Norfund
The investments are distributed across three mandates – Norfund’s original development mandate, the Climate Investment Fund, and the Ukraine Fund, which was established in December 2024.
70 percent of Norfund’s investments in 2025 went to Africa, 15 percent to Latin America, 10 percent to Asia and 5 per cent to Ukraine.