Norfund’s investees contribute to reducing poverty by creating jobs in developing countries
Jobs are vital to reducing poverty. They provide income and benefits to people, offering opportunities for them to improve their knowledge and skills. Jobs are created directly in our portfolio companies, in their supply chains, and through the goods and services the companies provide.
Every year, Norfund collects and monitors data on the key development effects of its investees. Collecting data requires time and resources, and we seek to find the right balance between getting the information we need and minimising the reporting burden on investees. Our reporting system is aligned with the IFI Working Group’s best-practice approach for Indicator Harmonisation.
By the end of 2016, 276,000 people were employed in the companies in which we have invested, either directly or through funds. 36 percent of those employed were women. The number of permanent jobs in companies with two consecutive years of reporting increased by 6 percent from the end of 2015 to the end of 2016.
Norfund’s investees also contribute to business growth and job creation by purchasing goods and services. In 2016, our investees purchased goods and services worth NOK 19 billion from local suppliers. Enterprises with two consecutive years of reporting increased their purchases by 29 percent.
Enabling local smallholder farmers to deliver produce to larger businesses can be beneficial to both local communities and companies. Ten of our agribusiness investments have such engagements and 11,000 smallholders are now linked with these investees. 58 percent of these smallholder farmers are women.
Reducing obstacles for enterprise growth
The companies in Norfund’s portfolio contribute to job creation by reducing critical obstacles to the development of other enterprises. The energy companies in Norfund’s portfolio, for instance, produced a total of 19.2 TWh of electricity in 2016. By increasing electricity supplies, our investees make it easier to establish new firms and for existing firms to expand.
Providing access to finance also helps to support enterprise growth. By December 2016, the financial institutions in which we have invested had issued loans to 11 million customers. Institutions with two consecutive years of reporting increased the total number of loans they provided by 17 percent.