29,100 new jobs were created, 1.6 million people gained access to electricity, and 12.7 million gained access to banking services through companies that paid NOK 41 billion in taxes in developing countries, according to figures from Norfund’s annual report for 2025. The Climate Investment Fund continues to deliver significant avoided emissions with solid returns.
Norfund’s annual report is being presented on the same day as Norfund’s general assembly, attended by Minister of International Development Åsmund Aukrust.
“The report shows that Norfund is a highly effective tool for job creation. Creating jobs is the most sustainable path out of poverty and a crucial part of the government’s development policy,”
Åsmund Aukrust
Minister of International Development
At the end of 2025, 788,000 people were employed in companies in Norfund’s portfolio. Data from companies that have reported figures for two consecutive years show a net increase of 29,100 new jobs from 2024.
One of the companies that created many new jobs was the textile manufacturer Balaji in Kenya, which added 1,001 new employees last year.
In addition to Norfund’s investments of NOK 8.4 billion in 2025, the fund estimates that a further NOK 17.8 billion was mobilised in private capital (attributed according to OECD rules). The return for the year was 7.6% (measured in investment currency), while the fund’s management costs were 1.16% of committed portfolio.
“At a time when global aid is being significantly reduced, it is more important than ever that Norwegian aid not only documents results but is also effective and helps mobilise private capital in this way,” says Aukrust.
Companies in which Norfund is invested paid NOK 41 billion in taxes in 2025. This corresponds to 70% of Norwegian aid in the same year.
“By paying taxes, the companies Norfund invests in contribute to sustainable financing of basic welfare services,” says outgoing CEO Tellef Thorleifsson.
Access to banking services and energy to create jobs
In 2025, 1,650,000 new households gained access to renewable energy through companies in Norfund’s portfolio, and during the year Norfund contributed to financing 12.3 GW of new power generation. A total of 12.7 million new customers were served by banks and other financial institutions in which Norfund has invested.
“Just as local banks have played a key role in developing Norwegian business, lower income countries depend on small and medium-sized enterprises having access to loans that give them the opportunity to invest and create new jobs,” says Erik Sandersen, EVP of Financial Inclusion, who will take over as Norfund’s new CEO from 1 July.
Investments in renewable energy deliver substantial avoided emissions
Norfund’s renewable energy portfolio financed by the fund produced 14,000 GWh last year, resulting in avoided emissions of 10.3 million tonnes. The Climate Investment Fund’s new investments in 2025 went into projects that will avoid 22.7 million tonnes of CO₂ once completed. The fund has achieved an average return of 13.3% (in investment currency).
“The fact that the Climate Investment Fund actually generates profit per tonne of avoided emissions makes it clearly Norway’s most effective climate tool,” says Minister of International Development Åsmund Aukrust.
More facts and figures from Norfund and the 2025 annual 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 otherwise not be initiated due to high risk”.
- Norfund has three investment mandates:
- A development mandate aimed at creating jobs and improving lives by investing in businesses that promote sustainable development, within 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 to support Ukraine’s reconstruction and build a resilient economy.
- In 2026, Norfund receives capital allocations of NOK 1.68 billion for its development mandate, NOK 1 billion for the Climate Investment Fund and NOK 0.5 billion for the Ukraine mandate.
- In 2025, Norfund made record-high investments of NOK 8.4 billion.
- Norfund’s total committed portfolio of NOK 45.5 billion at year-end is invested directly in 267 companies and indirectly in 1,114 companies through funds and platforms.
- In 2025, Norfund made 34 new investments and 24 follow-on investments.
- 71% of Norfund’s new investments under the development mandate in 2025 went to Africa, and 63% of the total committed portfolio was in Africa at year-end.
- 35% of Norfund’s development mandate is committed to companies in the world’s least developed countries (LDCs).
- Norfund’s total portfolio of energy projects financed by the fund contributed to avoided emissions of 10.3 million tonnes in 2025. The Climate Investment Fund’s new investments in 2025 went into projects that will avoid 22.7 million tonnes of CO₂ once completed.
- The overall return on Norfund’s investments in 2025 was 7.6% in investment currency (-3% in NOK). Since inception, the average return has been 5.3% in investment currency (7.8% in NOK).
- Since inception, the Climate Investment Fund has achieved an average annual return of 13.3% in investment currency (9.7% in NOK).