Norway invests billions to promote gender equality in Africa – but much of the work goes unseen

When Norway invests money in African businesses, it comes with conditions. The funds are not only expected to generate returns. They are also meant to improve living standards and promote gender equality. But what actually happens when Norwegian objectives meet everyday realities in East African agribusiness?

Researchers at the Norwegian Institute for Urban and Regional Research (NIBR) at OsloMet have examined this question in a new study of Norfund. Norfund is the Norwegian state's investment fund for business development in developing countries, and is tasked with helping to achieve the UN's goal of gender equality between women and men.

The study is based on document analysis and interviews, giving insight into practices that are not captured in numbers and reporting.

"Norfund does far more than what is visible from the outside. The problem is that much of this work happens as part of the investment processes themselves. As a result, it isn't reported as gender equality measures or gender equality outcomes," says Marianne Millstein.

She is a researcher at NIBR and led the project.

Norfund itself recognises this description.

"We are pleased that the report shows Norfund is doing good work on gender equality across its portfolio. At the same time, we take note of the recommendation that we should get better at showing what we actually achieve," says Mina Mariussen, an economist in Norfund's strategy and communications department.

The work that goes unseen

A key finding from the study is that large parts of the gender equality work never make it into the reports.

"General figures – such as how many women work in a value chain or are farmers within it – don't tell us the whole story. Much of what actually happens in practice remains invisible in those numbers," Millstein explains.

Measures such as flexible working hours, safe transport for female workers, better whistleblowing procedures and family-friendly policies make a real difference in people's daily lives. But they are difficult to measure and count.

"Many of the measures that genuinely make a difference for women on the ground simply can't be captured by the metrics used in reporting," says Millstein.

Few of the supported projects are registered as contributions to the UN's gender equality goal, even when gender perspectives are built into them. The fact that this work is embedded in the investment process is important – but it also means much of the effort remains invisible.

Both profitable and right

Norfund justifies its gender equality work on two grounds: it is profitable, because companies with good gender balance often perform better financially. And it is simply the right thing to do – strengthening women's opportunities in business has value in itself.

The fund has its own guidelines on gender equality and has woven gender perspectives into key governance documents. Combating workplace violence and harassment is a recurring theme across the organisation.

The fact that gender equality isn't an explicit goal in every investment area doesn't mean it is ignored.

"But without a clear objective, it's easier for gender equality to slip into the background – and harder for outsiders to see what is actually being done," says Millstein.

More than the minimum

Norfund often holds board seats in the companies it invests in, giving it direct influence.

If problems with gender discrimination or harassment come to light, these are written into the agreements with the company, which is then required to improve conditions within a set deadline.

In addition, Norfund uses what the researchers call "soft influence". They encourage and guide companies to go beyond the minimum requirements, without forcing them to do so.

"In difficult contexts, unrealistic demands can do more harm than good. Norfund works to build trust and create space to advance gender equality step by step," says Millstein.

Difficult, but important

The study focuses in particular on investments in East African agribusiness. Here, local knowledge matters. Norfund therefore invests in local funds that know the market and its challenges well.

They also collaborate with organisations that have experience working on gender equality in value chains.

Such projects can improve both the economics for the companies involved and the conditions for workers and smallholder farmers. But the projects are often short and underfunded, which makes it difficult to achieve lasting change.

The researcher's advice to Norfund

"Norfund has come a long way, but they aren't good enough at showing what they actually achieve. That's a shame, because the work they do is more important than it appears," says Millstein.

She points to four areas for improvement:

• The fund should do more to showcase its gender equality work – both in its reporting and in its external communications.
• It should make better use of the data and knowledge it already holds.
• It should verify that companies are genuinely delivering on their gender equality commitments.
• And it should consider whether gender equality should count for more across a wider range of its investment areas.

Norfund is already following up on these recommendations.

"We're working on presenting our approach and practice more clearly on our website, and we'll be putting the topic on the agenda at our annual Norfund Conference on 5 May," says Mariussen.

You can read the whole report in The Norwegian Research Information Repository (nva.sikt.no).