Growing sustainable enterprises drives industrialisation, economic growth and job creation
Few countries have developed their economies without developing a strong manufacturing base and manufacturing holds great potential as an enabler of economic growth and transformation in Africa. Africa imports one-third of the food, beverages, and similar processed goods it consumes, but a large share of the imported products could be manufactured in Africa.
The Agribusiness sector in particular, is vital for economic growth and job creation due to its labour intensity and high demand for local suppliers and associated farmers.
Investments are needed throughout the value chain. Attracting investors and accessing credit are two key constraints faced by manufacturing and agribusiness companies in Africa. Development Finance Institutions willing to take high risks are therefore strongly needed in this sector.
Scalable enterprises are companies with significant potential for growth and job creation. This means that we invest in and support companies in the agribusiness value chain and manufacturing that have the potential to grow and become larger industry players.
Investment is undertaken through two investment vehicles:
Funds: Investing in scalable enterprises through private equity and venture funds covering Norfund’s strategy countries.
Direct investments: Will focus on opportunities in Sub-Sahara Africa through partnerships with strong industrial or financial partners. Direct investments in SSA will target agribusinesses and select verticals within manufacturing.
Team with experience
To maximise financial and developmental success in the investee companies, Norfund strives to be a value adding owner beyond the mere capital investment. Therefore, our investment team has extensive experience in project development, environmental, social and governance aspects, and always works closely with the investment partners, also on the board level, to further develop the companies.
Direct investments will be made primarily in Sub-Saharan Africa, while fund investments can be made in funds investing across Norfund’s strategy countries.