Norwegian investment fund Norfund is showing growing interest in Cameroon to finance projects focused on the green economy. In its desire to strengthen its presence in Central Africa, Norfund is particularly targeting agro-industry and renewable energies, with the aim of promoting job creation and combating climate change.
Norfund, the Norwegian investment fund, recently announced its intention to set up in Cameroon in order to stimulate the green economy in Central Africa. Present in 30 countries, including 16 in Africa, Norfund is now turning its attention to the Economic and Monetary Community of Central Africa (CEMAC). Already active in West Africa, particularly in Nigeria, Côte d’Ivoire and Senegal, the fund sees considerable potential in Cameroon to expand its action. “Cameroon is the gateway to the other CEMAC countries. There is a favorable business environment, and an education system that produces energetic and qualified youth,” said Ellen Cathrine Rasmussen, Executive Vice President at Norfund, during a meeting in Douala.
Norfund’s interest in Cameroon is mainly focused on strategic and sustainable sectors. Agribusiness, renewable energy, infrastructure and waste management are at the heart of the fund’s investment strategy. According to Ellen Cathrine Rasmussen, all projects supported must aim for climate impact reduction objectives. “We are looking for quality projects in renewable energy, agribusiness, industry and waste management. Our ambition is to support the development of these companies to generate sustainable jobs.”
Although Norfund did not specify the total amount of funding envisaged, the organization is willing to invest tickets ranging from $5 million (about 3 billion FCFA) to smaller amounts, to encourage the growth of local SMEs.
In order to guarantee the sustainability of its investments, Norfund imposes certain conditions on the companies it supports. They must demonstrate sound and transparent financial management. To facilitate access to financing, Norfund favours investment via private equity and venture capital. It also invests in local banks, which allows them to lend more easily to SMEs. “We want companies of a certain size, with a minimum ticket of $5 million, but we remain open to lower costs for developing companies,” says the manager.
For Norfund, Cameroon represents a strategic lever to penetrate the CEMAC market. Na Anna Winful, Norfund’s Regional Director for West Africa, expressed her enthusiasm for the opportunities that Cameroon offers: “We see Cameroon as a gateway to Central Africa. We look forward to supporting the local entrepreneurial spirit, with its many SMEs and large companies. Cameroon’s bilingualism and dynamism are assets for us.”
By engaging in sectors such as renewable energy, waste management, agribusiness and green infrastructure, Norfund hopes to contribute to job creation and the growth of a more sustainable economy. By investing in agribusiness, one of the largest employers in the country, Norfund aims to foster local food processing and strengthen the competitiveness of Cameroonian industry.
For Norfund, sustainable development and job creation go hand in hand. By focusing its funding on environmentally friendly projects, the fund aims to actively participate in the fight against climate change while contributing to local economic growth. According to Ellen Cathrine Rasmussen, “Our main goal is really to create sustainable jobs. We believe that for a company to be sustainable, it must be financially sound.”
Thus, the arrival of Norfund in Cameroon could mark a turning point for many local companies seeking financial and strategic support. By focusing on sectors that are essential for the green economy, Norfund aims to have a concrete impact on the sustainable development of Central Africa.
