To improve the understanding of the macro-level impact of our investments, Norfund has supported research by Massa, Mendez-Parra and te Velde at the Overseas Development Institute (ODI). Their recent report The macroeconomic effects of development finance institutions in sub-Saharan Africa includes a comprehensive literature review of the macroeconomic effects of DFIs. 

They find that DFI investments have had a positive effect on the rate of GDP per capita growth in sub-Saharan Africa. Currently, the DFI investment-to-GDP ratio in sub-Saharan Africa is approximately 0.5 percent. Were this ratio to increase by 1 percentage point to 1.5 percent (approximately USD 15 billion – or, in other words, were the current level of DFI investments to triple), the growth rate in per capita income in sub-Saharan Africa would increase by 0.24 percentage points. This increase would be particularly significant for a continent in which the average annual growth rate in per capita income has been 1.8 percent over the past decade. Read the full report here.