December 20, 2024
The Norwegian government has given Norfund a mandate to invest in Ukraine through a separate Ukraine Fund, supporting the country’s reconstruction and building a resilient economy.
Background
Russia’s war against Ukraine has caused widespread destruction, creating an urgent need for investments to rebuild critical infrastructure and support economic recovery. In September 2024, the Norwegian government announced that Norfund would be given a mandate to invest in Ukraine through the Nansen programme. emphasizing the private sector’s essential role in reconstruction. Drawing on its experience in high-risk markets, Norfund will support projects with significant development impact, rebuild vital infrastructure, and mobilize private capital to address Ukraine’s substantial recovery needs. The Government has allocated NOK 250 million to the mandate in 2024 and has signaled further allocations in the years to come.
Purpose
The purpose of the Ukraine mandate is to contribute to the development of sustainable business activities and job creation in Ukraine. The fund aims to support investments that would not otherwise be undertaken due to the high risk in Ukraine. The Ukraine Fund is also intended to mobilize private capital by encouraging private investors to invest alongside the fund or be inspired by its activities.
Prioritized sectors
Norfund will prioritize our existing sectors:
- Renewable energy to rebuild clean and sustainable power infrastructure.
- Financial inclusion to strengthen Ukraine’s financial systems and provide businesses with access to capital.
- Scalable enterprises within agribusiness and manufacturing and fund investments that can drive job creation and long-term economic recovery.
- Green Infrastructure to improve essential infrastructure services
Norfund will provide risk-mitigating capital and contribute through equity, other forms of risk capital, and loans. We will not be providing concessional capital or grants.
We primarily be looking at ticket sizes of 5-15 MUSD, and Norfund will always be a minority investor.
A dedicated team will be established within Norfund to oversee and implement the Ukraine mandate. Financial Inclusion will have the overall responsibility for the mandate.
