The Norwegian Investment Fund for developing countries (Norfund), has expressed interest to increase investments in Nigeria and the West African region, to drive development through investments in the private sector, and creating jobs.
This was disclosed during its first stakeholder event in Nigeria, which hosted key players across multiple industries in the private sector to provide an update on its activities in Nigeria and West Africa, according to a statement.
Owned and funded by the Norwegian government, Norfund is the most important instrument for strengthening the private sector in developing countries, by providing capital through its investments, whilst creating jobs and improving lives.
The Fund, which was established by the Norwegian Parliament in 1997, is focused on driving sustainable development with capital in the form of equity, debt and hybrid instruments, and fund investments to businesses and projects with strong developmental impact and commercial returns.
As a responsible investor, Norfund contributes to the achievement of the United Nations’ Sustainable Development Goals (SDGs) by investing for both commercial return and development impact and focusing on countries and sectors where capital is scarce and development impact is likely to be strong.
In his opening remarks, the Ambassador of Norway to Nigeria, Knut Eiliv Lein, was quoted as sayimg: “Set to become the world’s third most populated country, Nigeria is Norway’s most important market on the African continent as we believe that there is a huge opportunity for growth in Nigerian industries.
“We are impressed by the measures taken by the government to strengthen the startup community especially, as underlined by The Startup Act signed by President Muhammadu Buhari in October.”
Represented by the Business Counsellor, Eivind Fjeldstad, the envoy added, “Moreover, Norway is in the process of updating its African strategy and I’m proud that the Norway-Nigeria relations reflect this with business and investments taking centre stage. We thank Norfund for its role in strengthening Nigerian-Norway relations in the most meaningful way.”
The Fund invests directly in the renewable energy, financial inclusion, green infrastructure, and scalable enterprises (agribusiness and manufacturing) sectors, alongside investments in private equity, venture capital, and other funds.
Norfund’s mandate
In her remarks, the Executive Vice-President, Scalable Enterprises, Norfund, Ellen Cathrine Rasmussen, spoke about Norfund’s mandate to assist in building sustainable businesses and industries.
She said: “At the core of Norfund’s operations is the mission to create jobs, improve lives, and invest in sustainable businesses.
“Operating within the framework of the Ministry of Foreign Affairs which we are a part of, we are able to set our strategy, make investment decisions, and remain agile whilst adapting to market opportunities.
“Africa is the most important region for Norfund. A minimum of 50% of investments we commit to are on the continent because it is the market of the future.
“We not only support the companies we invest in but also nurture the entire ecosystem as its collective strength will enable us to aid Nigeria in sustainable growth.
“Nigeria is of key importance to Norfund due to its strategic geographical placement, young and vibrant population, and its ever-growing economy. Norfund is here to contribute to realizing this growth potential”.
Norfund’s Regional Director for West Africa, Naana Winful Fynn, informed that, “Norfund looks to add value outside of its provision of investment capital in many ways, including supporting companies to institutionalize by developing on the governance, risk management and systems and processes fronts. This is done by supporting companies in the realization of their strategic plans and by providing businesses with technical assistance.”
With a total investment portfolio of $3.1 billion, Norfund focuses on sub-Saharan Africa alongside South-East Asia and Central America.
The Fund invests directly in the renewable energy, financial inclusion, green infrastructure, and scalable enterprises (agribusiness and manufacturing) sectors, alongside investments in private equity, venture capital, and other funds.
The event further showcased Norfund’s commitment to supporting businesses in the private sector that drive sustainable economic growth in sub-Saharan Africa.
Norfund also reaffirmed the strategic importance of Nigeria to its operations, as a result of its large and vibrant population, economic prospects, and vast pool of strong and resilient entrepreneurs.
