A new era is dawning for Norway’s role in global development, and Norfund—the country’s powerhouse development finance institution—is at the forefront of it. Just yesterday, Norfund welcomed Åsmund Aukrust, Norway’s freshly minted Minister for International Development, for their first official sit-down. The meeting wasn’t just a formality; it was a launchpad for what feels like a reinvigorated mission—a “new order” of sorts—aimed at tackling some of the world’s toughest challenges with renewed purpose.
Aukrust steps into his role at a time when Norway’s reputation as a global leader in sustainable development is both a badge of honor and a call to action. Known for its outsized contributions to international aid—despite a population of just over 5 million—Norway has long set the standard for how small nations can make big impacts. Norfund, with its mandate to invest in businesses that drive jobs, clean energy, and resilience in developing countries, is a key player in that legacy. And Aukrust, already well-versed in Norfund’s work, didn’t need a primer—he came ready to build on it.
The discussion was a deep dive into Norfund’s world: its investments lighting up off-grid villages in Africa, its stakes in agribusinesses feeding communities in Asia, and the financial institutions it backs to empower small entrepreneurs. But it was also a chance to look ahead. Norfund laid out the opportunities—think untapped renewable energy markets or women-led startups hungry for capital—and the headaches, like unsteady economies and climate shocks that keep investors on edge. Aukrust listened, nodded, and then got to the point: Norway’s development policy under his watch will hinge on three pillars—mobilizing private capital, advancing gender equality, and creating decent jobs.
This isn’t just rhetoric; it’s a blueprint that mirrors Norfund’s own DNA. Take mobilization: Norway’s government has tasked Norfund with turning public funds into a magnet for private investment, a strategy that’s already unlocked billions for projects from hydropower in Nepal to microfinance in Kenya. Gender equality? Norfund’s been there, backing initiatives like solar companies that hire women in droves or loan programs targeting female farmers. And decent work? Every factory or farm it funds is a bet on stable, fair employment in places where it’s needed most.
Aukrust’s arrival feels like a perfect fit for this moment. A member of Norway’s Labour Party, which swept into power promising a fairer, greener future, he brings a progressive streak tempered by pragmatism. His early statements as minister—echoed in government press releases—signal a push to align Norway’s $1.4 billion annual aid budget with global crises like food insecurity and climate displacement. Norfund, with its $3 billion portfolio, is the sharp end of that spear, and this meeting was about syncing up their clocks.
The stakes couldn’t be higher. Globally, development is at a tipping point—poverty rates are creeping back up, and the UN’s Sustainable Development Goals are looking more like a wish list than a roadmap. Norfund knows this firsthand; its teams wrestle daily with the realities of operating in fragile states or markets spooked by inflation. But Aukrust’s “new order” isn’t about shying away but doubling down. “With global development facing unprecedented challenges, it is more important than ever to channel investments where they can create lasting change,” Norfund noted after the meeting, a sentiment Aukrust clearly shares.
Picture this: a fishing cooperative in Ghana, powered by Norfund-backed solar panels, now hiring locals instead of folding under power cuts. Or a woman in Bangladesh, her tailoring shop humming thanks to a loan from a Norfund-supported bank. These are the wins Aukrust wants to scale—and the meeting was a pledge to make it happen. Norway’s new order isn’t just about money; it’s about momentum, about proving that strategic investments can outpunch their weight.
Of course, it’s early days. Aukrust’s vision will face tests—geopolitical curveballs, donor fatigue, the sheer scale of need. Norfund’s track record isn’t flawless either; not every bet pays off in high-risk zones. But as first meetings go, this one had the spark of something bigger—a partnership ready to lean into the chaos and carve out progress. Norway’s new order is taking shape, and with Norfund in lockstep, the world might just feel the ripple effects.
Foreign trade and development minister Reinette Klever: Dutch interests at the heart of development policy
News item | 20-02-2025 | 08:36
From now on, Dutch interests will take precedence in our country’s development policy. Those interests concern trade, security and migration. The government will focus on programmes and diplomatic activities in areas where the Netherlands excels: water management, food security and health.
These principles form the core of the new development aid policy that the Minister for Foreign Trade and Development, Reinette Klever, sent to the House of Representatives on Thursday. The government has agreed it will impose structural spending cuts of € 2.4 billion on development aid from 2027. ‘All the programmes we fund must contribute directly to our own interests: promoting trade, enhancing security and reducing migration,’ Ms Klever said.
The minister believes that current Dutch policy is too fragmented to be sufficiently effective. She has therefore decided to apply a sharper focus and put Dutch interests first. ‘The goal is not merely to reduce development aid, but to make it better. We will make clear choices, doing only what we do best and working wherever possible with Dutch businesses. That will benefit the Netherlands and it will benefit recipient countries,’ the minister explained.
The government is linking aid and trade more explicitly, too. ‘We will give Dutch businesses more opportunity to win development contracts,’ Ms Klever said. ‘And we’ll help the countries concerned to develop into trading partners, which will be good for their economies and employment figures.’
The government will also use development aid as a way to boost security in various conflict regions surrounding Europe: West Africa, the Horn of Africa, the Middle East and North Africa. This should help avoid disruption to trade, combat the rise of terrorist or criminal organisations and prevent people applying for asylum in the Netherlands. ‘Food shortages, for example, are a cause of conflict,’ Ms Klever explained. ‘So we will deploy Dutch agricultural expertise to improve and increase food production.’
The government wants to tackle migration and is therefore investing in migrant return, as well as reception and protection of refugees in their country or region of origin. Ms Klever: ‘Giving people future prospects in those regions will enable them to build livelihoods, meaning they won’t have to make the journey to Europe.’ The government wants to make agreements with migration countries, aimed at combating migration and encouraging return.
Despite the major cutbacks, the government will continue providing humanitarian aid to people in crisis situations. Ms Klever aims to do this via local aid organisations, as they are able to respond swiftly and effectively in crises.
Under the new policy, funding for various programmes will be terminated, in areas such as gender equality, vocational and higher education, sport and culture. Funding for climate action, civil society and UN organisations will be reduced.
