In the budget proposal for 2018, the Norwegian Government proposes an aid budget that is bigger than ever before. This includes a 12,5% increased capital allocation to Norfund.
Global health and private sector development are the winners in the Norwegian governments aid budget proposal for 2018 - with an increase of respectively 400 and 388 million NOK. Efforts in job creation and renewable energy are high on the agenda.
"We know that job creation in developing countries is vital if we are to succeed in fighting poverty and promoting growth and stability. We are therefore proposing to increase our support for business development by NOK 338 million in 2018. Of this amount, NOK 188 million will be an increased allocation of capital to Norfund – the Norwegian Investment Fund for Developing Countries." said Mr Brende in a press release today, 12th october.
He further underlined that "Norfund is our most important instrument for promoting business development in developing countries, and it is a good example of how aid can be used as a catalyst to mobilise other, larger flows of capital."
50 percent of the budgeted annual capital allocation to Norfund is required to be invested in clean energy projects.