June 17, 2025
Norfund’s annual report for 2024 shows that the companies Norfund has invested in are delivering record numbers of new jobs, financial inclusion, and increased tax revenues, through profitable investments.
“Work for all is job number one for the Labour Party, and the figures from the annual report once again show that Norfund’s investments in developing companies that create new jobs and pay taxes, effectively contribute to combating poverty while mobilizing private capital,”
says Åsmund Aukrust, Minister of International Development.
Norfund invested a record-high NOK 7.7 billion in 2024 and mobilized an additional NOK 7.8 billion in private capital (attributed according to OECD Methodology). The fund’s operating costs were 1 percent of the committed portfolio.
Record-high 41,400 new direct jobs
At the end of 2024, a total of 712,000 people were employed in the companies in which Norfund is invested. Figures from companies the fund has invested in and received reports from for two consecutive years show a net increase in new jobs of a record-high 41,400 (8 percent) from 2023 to 2024. In 2023, the corresponding figure was 37,200. Over 477,000 of the jobs were in Africa, and 192,000 were in least developed countries (LDCs).
“Paid work is the way out of poverty, and contributing to the creation of more jobs and mobilizing private capital will become even more important in the face of aid cuts and the risk of a slowdown in the global economy,”
says Tellef Thorleifsson, CEO of Norfund.
Record-high 14.6 million new clients served by portfolio financial institutions
Access to financial services is a prerequisite for businesses to develop and create jobs. Banks and other financial institutions are therefore one of Norfund’s most important investment areas. In 2024, a record-high 14.6 million new customers were served by the companies Norfund has invested in (which also reported in 2023).
“Just as local banks have played a key role in developing Norwegian businesses, low-income countries depend on financial institutions that give small and medium-sized enterprises the opportunity to invest and create new jobs,” says Thorleifsson.
Similarly, access to energy is crucial for businesses and communities to develop. In 2024, 750,000 new households gained access to renewable energy through companies in Norfund’s portfolio. This is an increase from 420,000 households in 2023. During the year, Norfund helped finance 3,315 MW of new renewable power capacity.
Taxes paid equivalent to ¾ of Norwegian aid
In 2024, NOK 41.2 billion was paid in taxes and fees by Norfund’s investees. This corresponds to 74% of total Norwegian aid in 2024. From the end of 2023 to the end of 2024, the total taxes and fees paid by companies that reported both years increased by a record-high NOK 5.4 billion. The increase alone corresponds to twice the amount Norfund received from the state budget for investments in 2024.
“Increased tax revenue is the sustainable way for governments in poor countries to offer basic services such as education and healthcare and become independent of aid,” says Thorleifsson.
Facts and figures from the report
- Norfund is a state-owned company under the Ministry of Foreign Affairs, established in 1997 through the Norfund Act, to “establish viable, profitable businesses that would not otherwise be initiated due to high risk.” Norfund invests on commercial terms as a responsible minority investor in collaboration with partners.
- Norfund now has three investment mandates:
- A development mandate aimed at creating jobs and improving lives by investing in businesses that drive sustainable development in four investment areas: renewable energy, financial inclusion, scalable enterprises, and green infrastructure.
- A climate mandate, managed through the Climate Investment Fund since 2022, aimed at investing in the transition to net zero in emerging economies.
- A Ukraine mandate established in December 2024 aimed at supporting Ukraine’s reconstruction and building a resilient economy.
- In recent years, Norfund has annually received NOK 1.68 billion for the fund’s development mandate and NOK 1 billion for the Climate Investment Fund. In December 2024, Norfund received NOK 250 million for a new Ukraine mandate.
- In 2024, Norfund invested a record-high NOK 7.7 billion, almost three times the amount transferred over the state budget, as a result of freed-up funds from returns and divestments.
- Norfund’s total committed portfolio of NOK 43.2 billion at the end of the year is invested directly in 245 companies and indirectly in 1,050 companies through funds and platforms.
- In 2024, Norfund made 27 new investments and 24 follow-up investments.
- 53% of Norfund’s new investments under the development mandate in 2024 went to Africa, and 63% of Norfund’s total committed portfolio was in Africa at the end of the year.
- 34% of Norfund’s portfolio is committed to companies in the world’s least developed countries (LDCs).
- Norfund’s investments through the Climate Investment Fund have so far been invested in projects that will avoid 17.6 million tons of CO2 annually, equivalent to 40% of Norway’s annual emissions.
- The total return on Norfund’s investments was 8.4% in investment currency (19.6% in NOK) in 2024. The average return since inception has been 5.2% in investment currency (8.7% in NOK).
- The Climate Investment Fund has had an average annual return of 14.4% in investment currency (19% in NOK) since its inception.