{"id":3225,"date":"2021-05-25T12:37:45","date_gmt":"2021-05-25T10:37:45","guid":{"rendered":"https:\/\/norfund.wpenginepowered.com\/annualreport-2020\/?page_id=3225"},"modified":"2021-06-02T08:46:08","modified_gmt":"2021-06-02T06:46:08","slug":"financial-inclusion","status":"publish","type":"page","link":"https:\/\/reports.norfund.no\/annualreport-2020\/portfolio-results\/financial-inclusion\/","title":{"rendered":"Strengthened financial inclusion"},"content":{"rendered":"\n

Lack of access to finance is regarded as the most important constraint to the development and growth of businesses in low-income countries. Contributing to increased financial inclusion is a key priority for Norfund.<\/p>\n\n\n\n

1.5<\/div>
million<\/div><\/div>
<\/div><\/div>

New clients served by direct investments<\/p><\/div>

40<\/div>
billion NOK<\/div><\/div>
<\/div><\/div>

Increase in lending to clients by direct investments<\/p><\/div><\/div><\/div>\n\n\n\n

Development Rationale<\/h2>\n\n\n\n

Inclusive financial systems provide businesses and individuals with greater access to resources to meet their financial needs, such as capitalising on business opportunities, investing in homebuilding or education and managing unforeseen circumstances.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Norfund\u2019s investments in financial institutions contribute directly to SDG 8-10 and 9-3.<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n

In low- and middle-income regions, the financial sector is often underdeveloped. Businesses and individuals have limited access to basic financial services, such as bank accounts, payment services and credit facilities. <\/p>\n\n\n\n

Across developing countries, it is estimated that 65 million formal micro-, small- and medium-sized enterprises (MSMEs) have unmet financing needs, and about 1.7 billion adults remain unbanked.<\/p>\n\n\n\n

Norfund\u2019s impact objectives<\/h2>\n\n\n\n

Norfund has the following impact objective for investments in financial institutions:<\/p>\n\n\n\n