IP/C/W/646/Add.5  
 
2 November 2018  
(18-6885) Page: 1/11 
Council for Trade -Related Aspects of  
Intellectual Property Rights  Original: English  
 
REPORT ON THE IMPLEM ENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEME NT 
NORWAY  
Addendum  
The following communication, dated 1 November 2018 , from the delegation of Norway, is being 
circulated pursuant to paragraph 1 of the Decision on the Implementation of Article 66.2 of the 
TRIPS Agreement (IP/C/28).  
 
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1  INTRODUCTION  
1.  Article 66.2 of the TRIPS Agreement requires "developed country Members to provide incentives 
to enterprises and institutions in their territories for the purpose of promoting a nd encouragi ng 
technology transfer to least developed country Members in order to enable them to create a sound 
and viable technological base ". The present note provides an overview of the relevant facilities 
provided by the Norwegian Agency for Developmen t Cooperation (Norad) and the Norwegian 
Investment Fund for Developing Countries (Norfund).  
2.  Least developed countries are eligible for Norad and Norfund incentive schemes along with other 
developing countries.  
2  THE NORWEGIAN AGENCY  FOR DEVELOPMENT COO PERATI ON (NORAD)  
3.  Norad is a directorate under the Norwegian Ministry of Foreign Affairs, and is responsible for 
quality -assurance of Norwegian development cooperation. Norad also administers several grant 
programmes for specific purposes, among them is private s ector development. Norad provides 
incentives for technology transfer to least  developed countries (LDCs) through its facilities for 
pre-investment support, the Oil for Development programme and the Fish for Development 
programme. Many other NORAD programme s also include elements of technology transfer.  
4.  The facilities for pre -investment support are application -based and untied. The main users are 
Norwegian enterprises. The schemes are open for all kinds of technology transfer, but priority is 
given to invest ments in renewable energy, agriculture (particularly climate -resilient agriculture in 
Africa), information and communication technologies (ICT) as well as the marine and maritime 
sectors. Technical assistance is the main mode of technology transfer but the  schemes also include 
investments in basic infrastructure. The financing facilities are fully utilized every year.  
5.  The purpose of the Norad facilities for pre -investment support is to encourage firms to invest in 
developing countries and LDCs. The support schemes intend to pave the way for long -term 
commercially viable investments through financial support for risk -reducing measures and/or 
measures that promote the sustainability and feasibility of private investment projects. The facilities 
promote coopera tion, including cooperation relating to transfer of technology, through the support 
of feasibility studies for establishing joint ventures or foreign subsidiaries, training in order to 
strengthen the local staff and management of joint ventures or companie s that are owned wholly or IP/C/W/646/Add.5  
 
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  partially by one or more foreign companies, investments in basic environmental infrastructure and 
basic infrastructure (road, water/sanitation, electricity and telecommunication). The additionality of 
Norad 's support to individua l companies has been in helping direct investment towards countries 
and regions where companies would not necessarily have invested otherwise, due to lack of contact 
to facilitate implementation and risk, among other reasons. Disbursements to LDCs for this  facility 
in 2017 are listed in table 1 below.  
6.  The Clean Energy for Development Initiative aims to increase access to renewable energy in 
developing countries. The Initiative has provided lasting results for millions of people since it was 
started in 2007.  The Initiative focuses on areas where Norway has a special expertise to offer, and 
mobilizes private capital and competence in areas such as hydropower, solar, wind and bio -energy. 
The NORAD facilities for pre -investment support has a special window for r enewable energy 
investments. Disbursements to LDCs for this facility in 2017 are listed in table 2 below.   
7.  The Norwegian Oil for Development Programme (OfD) aims at assisting developing countries and 
LDCs, upon their request, in their efforts to manage pet roleum resources in a way that generates 
economic growth, and promotes welfare of the whole population in an environmentally sustainable 
way. The Oil for Development Programme is engaged in a number of other initiatives, either directly 
or via other donors  and implementing partners. Disbursements to LDCs for this facility in 2017 are 
listed in table 3 below.  
8.  Within Norwegian development cooperation in fisheries and aquaculture one aim is to introduce 
appropriate technology and systems, and over time ensure that these are operated as intended. 
Norway has supported the Nansen Programme for more than 40 years. One central element in the 
programme is the research vessel "Dr. Fridtjof Nansen ". The programme aims at gathering 
information about the marine resources  and environment, and support developing countries and 
LDCs in utilizing these data for improved management of their marine resources.  
9.  Since 1990 the programme has mainly  been operating in the coastal S tates of Africa, including 
LDCs like Angola, Benin, Congo, The Gambia, Guinea, Guinea -Bissau, Liberia, Madagascar, 
Mauritania, Mozambique, Senegal, Sierra Leone and Tanzania. The programme has also over the 
years conducted three surveys in Myanmar. Scientists and managers take part in the planning and 
opera tion of the surveys, as well as post -survey work. The participants learn about instruments and 
techniques to measure the size and composition of fish stocks as well as identification of other 
organisms in the ocean. Physical parameters of the marine enviro nment are measured continuously. 
The results are analysed and formulated as basis for management decisions. With time series that 
are developed, information can be achieved about changes and trends in the marine environment 
and its resources. The data coll ected are the property of the country in question. The Food and 
Agriculture Organization of the UN (FAO) manages the programme. The Institute of Marine Research 
in Norway provides scientific expertise.  
10.  In Mozambique, Norway is supporting the establishment and operation of a hatchery, breeding 
programme and training of personnel in the operation of the equipment and systems.  
3  NORWEGIAN INVESTMENT  FUND FOR DEVELOPING  COUNTRIES ( NORFUND)  
3.1  About Norfund  
11.  The purpose of Norfund is to contribute to building sustaina ble commercial businesses in 
developing countries by providing risk capital and expertise. Norfund contributes to economic 
development and sustainable jobs in poor countries through the development of profitable 
enterprises, particularly within the fields of clean energy, the financial sector and agribusiness, 
coupled with transfer of knowledge and technology.   
12.  Norfund 's main priority investment region is Sub -Saharan Africa. We also invest in selected 
countries in South -East Asia and Central America. 33%  of our portfolio s hould be in LDCs and 50%  
in Sub -Saharan Africa. These are areas with a particular shortage of capital and expertise. Of new 
commitments in 2017, the LDC and Sub -Saharan Afric a shares were 34 and 35%  respectively. 
Norfund has a local pres ence with offices and staff in all the main geographic areas.  IP/C/W/646/Add.5  
 
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13.  Norfund has chosen to concentrate on investments in clean energy, food and agribusiness, and 
the financial sector. These are sectors with high developmental returns and where Norfund 's 
prerequis ites for mobilizing expertise of international quality are good. Assistance from Norfund is 
untied and does not have to be in cooperation with Norwegian enterprises. Of the three core sectors, 
clean energy is the largest sector of investment. Access to ene rgy is a precondition for development 
and economic growth. Norfund invests in clean energy generation projects that increase energy 
supply, improve reliability and are sustainable sources of electricity. Banks and microfinance 
institutions are important fo r businesses ' and households ' access to financial services such as loans, 
savings accounts and insurance, allowing for more value creation and financial planning. Food and 
agribusiness is an important sector for poverty reduction through increased food pro duction for local 
consumption and trade, as well as employment of both skilled and unskilled labour. Technology and 
competence transfers are an integral part of Norfund 's investment activities, both with regard to 
operational and industrial management, as well as health, safety and environmental issues. The 
development of these elements is core to the organization 's mission.  
14.  Norfund exercises active ownership in the companies and funds it invests in and it often requires 
seats on the investees ' boards or ot her decision -making bodies. This gives Norfund proximity to 
operations and the possibility of influencing practices and standards over time. Given an ownership 
horizon of four-ten years, Norfund works for the creation of a corporate culture that is engaged  in 
continuous improvement of corporate governance, and environmental and social standards. Action 
plans are sometimes used to stake out a long -term course for how companies should shift from 
operating according to local standards to using international st andards. Norfund also has a special 
grant facility that can be used to support enterprise improvements in terms of better governance, 
enhanced environmental and social responsibility for existing investees, community development, 
as well as the development  of particularly risky investment opportunities. These grant resources are 
allocated independently of the commercial investment capital and are an effective instrument in 
Norfund 's execution of ownership and for transferring technology and knowledge.   
3.2  Inve stments in food and agribusiness  
15.  Within the food and agribusiness sector Norfund in 2017 disbursed more than USD1 10 million 
to our investees ' operations in L east Developed Countries. An example of a new investment in 2017 
is Verde Beef, an integrated beef producer in Ethiopia, where USD 5.1 million was disbursed this 
year of a total commitment of USD 7.6 million. The capital provided by Norfund will help Verde Beef  
by enabling the construction of a state -of-the-art abattoir and meat processing facility. Verde Beef 
is a critical project that is aligned with the Ethiopian government 's focus on job creation, increasing 
exports and introducing improvements to the agricu ltural sector in Ethiopia. Overview of Norfund 's 
investments in food and agribusiness with disbursements in LDCs in 2017 is shown if table 4 below.  
3.3  Investments in clean energy  
16.  Within the field of clean energy, Norfund has several investments involving tran sfer of state of 
the art technologies to developing countries. More than USD 4.3 million were disbursed to investees 
within clean energy in LDCs in 2017. Disbursements to LDCs for this facility in 2017 are listed in 
table 5 below.  
17.  An example of a project i nitiated in 2017 is our investment in Yoma Micropower in Myanmar. 
This is a pilot project for the installation of solar tower systems to telecom towers, with the possibility 
of village power supply. This trial, if successful, will support the effort of the  company to provide 
reliable and clean energy on commercially attractive terms to their customers, which in turn can be 
scaled to a large part of the country. The project is well poised to benefit from the owner 's experience 
in the telecommunications tower  business and experience in clean energy around the world. 
State -of-the-art solutions for distributed energy will contribute to increased economic development.  
                                                
1 Amounts in USD are calculated from an exchange rate of USD 1 = 8.20 NOK, as of 29 December 2017.  IP/C/W/646/Add.5  
 
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  3.4  Investments in the financial sector  
18.  26% of Norfund 's commitments in 2017 was invested in financi al institutions, including 
microfinance. At least USD 19.2 million were disbursed into our investees ' operations in LDCs in 
2017 in this sector. Disbursements to LDCs for this facility in 2017 are listed in table 6 below.   
19.  An example is the green field mic rofinance institution Advans Myanmar, which is providing 
simple and effective lending solutions to clients with little or no access to formal lending services. 
Advans Myanmar opened its first branch in April 2017 and aims to accelerate financial inclusion in 
its areas of operation and have a positive impact on long term economic and social development in 
Myanmar.  
20.  In addition to direct investments, Norfund also invests in funds that focus on small and 
medium -sized enterprises (SMEs). SMEs are important for local value creation and employment, but 
are generally too small and too diverse for Norfund to invest in directly. By investing through local 
and regional funds, Norfund can reach enterprises that often have trouble getting finance from 
formal banks.  
21.  An example of Norfund 's investments in SME funds: In 2017 Norfund was instrumental to 
establish Agri -Vie II, after been invested with Agri -Vie Fund 1 since 2010. Agri -Vie II invests across 
the broad food and agricultural sector, focusing on the thriving Africa n markets for processed food 
as well as export opportunities. The opportunities of the fund 's investees are driven by distinct 
structural factors and trends, as well as the availability of new technologies to enable precision 
farming and efficient agro -processing at lower risk. The fund 's philosophy is to actively help to build 
the success of their investee businesses.  
22.  Norfund is also providing technical assistance grants to several of the funds ' investee 
companies. Among other things, the grants are used t o help the SMEs obtain certifications and 
external expert advice to improve various aspects of the business model and/or operations. Grants 
have also been provided to strengthen the fund management and support work -related training 
programmes.  
 
 
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  IP/C/W/646/Add.5  
 
- 5 - ANNEX 1: ILLUSTRATIV E TABLES1 
The following six tables are provided to show concrete exa mples of disbursements to Least Developed Countries from the Norwegian facilities described above. When reading them, 
keep in mind that transfer of technology may be one of several objectives that the facility/incentive is meant to serve. The amounts below  are in Norwegian Kroner (NOK), and should 
not be interpreted as support exclusively to technology transfer. Please note also that there are some variations to the form ats of the tables, due to different sources and reporting 
systems. For calculation purpo ses the exchange rate was the following at the end of 2017 (29 December): USD 1 = 8.20 NOK.  
Table 1: Norad 's facilities for pre -investment support  
Title of project/ programme incentive  Enterprise development for jobs  
Policy objective/purpose  To encourage firms to invest in developing countries and LDCs  
Funding agency  The Norwegian Agency for Development Cooperation (Norad)  
Actors eligible for support  Private companies  
Type of technology transfer  Privately owned technology related to investments within each sector mentioned below.  
Ongoing projects in LDCs (disbursements in NOK million)  
Recipient country  DAC Sub sector (code+name)  2017  2015 -2017 aggregate  
Bangladesh  20 - Industrial development  1.5 5.7 
Cambodia  10 - Tourism policy and administrative management   
0.1 
Congo  40 - Information and communication technology (ICT)  0.4 0.4 
Ethiopia  30 - Vocational training  9.0 9.0 
 
50 - Waste management/disposal   
0.6 
 
61 - Food crop production  3.6 4.0 
 
81 - Agricultural education and training  6.0 6.0 
 
62 - Forest industries  0.7 0.7 
 
63 - Textiles, leather and substitutes  0.4 0.4 
Lao PDR  10 - Water sector policy and administrative management  3.5 10.5 
Malawi  10 - Agricultural policy and administrative management  0.1 0.1 
                                                
1 In English and French only.   
  IP/C/W/646/Add.5  
 
- 6 - Title of project/ programme incentive  Enterprise development for jobs   
10 - Trade policy and administrative management  2.5 8.5 
Myanmar  30 - Advanced technical and managerial training  1.0 1.0 
 
62 - Industrial crops/export crops  0.2 0.5 
 
30 - SME development   
17.0 
 
10 - Trade policy and administrative management  3.0 13.7 
Tanzania  40 - Information and communication technology (ICT)  0.5 0.5 
Uganda  10 - Education policy and administrative management  0.6 3.1 
 
40 - Information and communication technology (ICT)  2.1 3.4 
 
20 - Industrial development   
5.8 
Zambia  10 - Trade policy and administrative management   
5.9 
Grand Total   
35.1 113.2  
Table 2: Norad 's facilities for pre -investment support for renewable energy projects  
Title of project/ programme incentive  Enterprise development for jobs (renewable energy)  
Policy objective/purpose  To encourage firms to invest in developing countries and LDCs  
Funding agency  The Norwegian Agency for Development Cooperation (Norad)  
Actors eligible for support  Private companies  
Type of technology transfer  Privately owned technology related to investments in renewable energy, particularly solar, wind and hydropower.  
Ongoing projects in LDCs (disbursements in NOK million)  
 Recipient country  2017  2015 -2017 aggregate  
Bangladesh  1.8 2.7 
Myanmar  6.2 10.7 
Rwanda  3.1 3.1 
Tanzania  0.3 0.3 
Uganda   
7.0 
Total  11.4 23.7  IP/C/W/646/Add.5  
 
- 7 - Table 3: Oil for Development Programme  
Title of project/ programme incentive  Oil for Development Programme  
Policy objective/purpose  To offer assistance to  developing countries in their effort to manage petroleum resources in a sustainable manner  
Funding agency  The Norwegian Agency for Development Cooperation (Norad)  
Actors eligible for support  Government institutions  
Type of technology transfer  Resource management, safety management, environmental management and revenue management within the 
petroleum sector.  
Ongoing projects in LDCs (disbursements in NOK million)  Recipient country  2017  2015 -2017 aggregate  
Angola  16.1 43.3 
Liberia   
1.2 
Mozambique  26.7 95.2 
Myanmar  1.1 4.4 
Somalia  0.5 0.8 
South Sudan  2.7 27.9 
Sudan  14.2 23.6 
Tanzania  16.1 72.5 
Uganda  21.0 57.6 
Total  98.3 326.5  
 
 
 
   
  IP/C/W/646/Add.5  
 
- 8 - Table 4: Norfund 's investments in food and agribusiness with disbursement in LDCs in 2017  
A short description of the inv estees is given below the table  
 
Title of project/ programme 
incentive   DFI - Development Finance Institutions   
Policy objective/purpose   Contribute to development of profitable enterprises   
Funding agency   Norfund   
Actors eligible for support   Private Sector Enterprises   
Field of Tech Transfer   Food and agribusiness   
Type of Tech Transfer   Risk capital and expertise   
Ongoing projects in LDCs  Country  Name of 
project  Subsector  Disbursed  
in 2017  
(NOK)  Total 
commitment  
(NOK)  Type of 
capital  Year of initial  
commitment  
Ethiopia  Verde Beef  Meat 
production/pro 
cessing  42 020 930  62 500 000  Equity  2 017  
Malawi  Nyama World 
Malawi  Meat 
production/pro 
cessing  17 490 357  22 300 000  Loan 2017 
Tanzania  Agrica  Primary agriculture  2 680 735  139 600 000  Equity and 
loan 2010 
Mozambique  Neofresh  Primary agriculture  10 243 709  10 243 709  Equity  2017 
 
A short description of the companies in the table above:  
 
Investee  Description  
Verde Beef, Ethiopia  A meat production and processing company. The injected equity will further develop the important meat sector in Ethiopia to 
international standards, giving incomes to thousands more families and generating export earnings.   
Nyama World, Malawi  A meat pro duction and processing company. The loan will contribute to the  development of a modern Halaal certified abattoir and 
refrigerated transport services that will ensure proper slaughter, carcass preparation and preservation of meat and meat prod ucts. 
Agrica , Tanzania  Large scale rice and maize farm. Norfund 's investment has been deployed in the expansion of the farm, increase in processing and 
storage capacity, machines and equipment.  
Neofresh, Mozambique  Neofresh is  a South African company that specialize in the production, packing and marketing different fruits. With the capital 
injection the company will now be able to replicate  its technology and  professional skills in sub -tropical fruit production to 
Mozambique.  
   IP/C/W/646/Add.5  
 
- 9 - Table 5: Norfund 's investments in clea n energy with disbursements in LDCs in 2017  
A short description of the investees is given below the table  
 
Title of project/ programme 
incentive   DFI - Development Finance Institutions   
Policy  
objective/purpose   Contribute to development of profitable enterprises   
Funding agency   Norfund   
Actors eligible for support   Private Sector Enterprises   
Field of Tech Transfer   Clean energy   
Type of Tech Transfer   Risk capital and expertise   
Ongoing projects in  
LDCs  Country  Name of 
project  Subsector  Disbursed in  
2017 (NOK)  Total 
commitment  
(NOK)  Type of capital  Year of initial  
commitment  
Uganda  Rwimi EP  
Company  
Ltd Hydro Power  11 852 157  32 000 000  Equity 2 015  
Myanmar  Yoma  
Micropower  
PDF Solar energy  8 018 433  8 000 000  Equity  2017 
Lao PDR  Nam Sim 
Power  
Company  
Ltd Hydro power  3 508 197  35 700 000  Loan 2011 
Zambia  New Africa  
Power  Hydropower  1 963 963  15 100 000  Equity  2017 
 
A short description of the companies in the table above:  
 
Investee  Description  
Rwimi EP Company Ltd  Small Hydro Power Plant. The plant will contribute to more reliable electricity supply, one of the most critical factors for 
enterprises to develop.  
Yoma Micropower PD  Pilot project for the installation of solar tower systems to telecoms towers, with the possibility of vil lage power supply. State 
of the art distributed energy solutions will contribute to increased economic development.  
Nam Sim Power Company  The power plant has a critical role to increase the electrification rate in Huapha region, the poorest in Lao  PDR. 
New Africa Power  
 New Africa Power plans to exploit the country 's significant untapped hydropower resources by developing a  65 MW portfolio 
of small -scale run -of-the-river hydropower projects in Zambia, thereby ensuring alignment with the government 's economic 
and social development programmes.   
  IP/C/W/646/Add.5  
 
- 10 - Table 6: Norfund 's investments in financial institutions with disbursement in LDCs in 2017  
Title of project/ programme incentive    DFI - Development Finance Institutions   
Policy objective/purpose    Contribute to development of profitable enterprises   
Funding agency    Norfund   
Actors eligible for support    Private Sector Enterprises   
Field of Tech Transfer    Financial Institutions   
Type of Tech Transfer    Risk capital and expertise   
Ongoing projects in LDCs  Country  Name of 
project  Subsector  Disbursed 
in 
2017 (NOK)  Total 
commitment 
(NOK)  Type of 
capital  Year of initial 
commitment  
Myanmar  Advans MFI  
Myanmar 
Company 
Limited  Microfinance  8 790 652  9 700 000  Equity  2015 
Cambodia  First Finance 
Plc. Microfinance  8 371 900  350 000 000  Equity and 
loan 2013 
Uganda,  
Tanzania, 
Zambia  Arise Banking  57 335 808   Equity  2016 
Cambodia  Sathapana  Banking  83 492 000  180 000 000  Loan 2008 
 
A short description of the companies in the table above:  
 
Investee  Description  
Advans MFI, Myanmar  Advans MFI Myanmar will contribute to increased access to finance for unbanked people and MSMEs in the country. 
An experienced actor such as Advans MFI Myanmar will help to positively influence the direction and development of 
the Micro finance industry.  
Sathapana, Cambodia  Sathapana provides financial services to small and micro businesses that would not receive such services from 
traditional banks.   This dynamic company also has a clientele that is largely made of female entrepreneurs.  
Arise B.V., SUB Sahara Africa  Through Arise, a holding company with investments in financial institutions, Norfund and partners are partners are 
committed to strengthen and develop effective, inclusive financial systems in Africa through among others tec hnical 
assistance and management services in innovation, compliance and risk management.  
First Finance Plc., Cambodia  Specializes in housing financing. An experienced actor such as First Finance will help to positively influence the 
direction and develop ment of the Microfinance industry.  
 
 IP/C/W/646/Add.5  
 
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For further information and details, please contact:  
Norwegian Agency for Development Cooperation (Norad)  
Department for Private Sector Development  
P.O. Box 8034 Dep., N -0030 Oslo, Norway  
Tel: +47 23 98 00 00  
Email:  postmottak@norad.no  
Website:  https://www.norad.no/  
Norwegian Investment Fund for  Developing Countries (Norfund)  
P.O. Box 1280 Vika,  
N-0111 Oslo, Norway  
Tel: +47 22 01 93 93  
Fax: +47 22 01 93 94  
Email: post@norfund.no  
Website: http://www.norfund.no/  
 
 
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