IFU provides advisory services and risk capital to companies wishing to do business in developing countries and emerging markets
Investments are made on commercial terms in the form of equity and loans. The purpose is to contribute to economic and social development in the investment countries and support the realisation of the UN Sustainable Development Goals.
IFU and IFU managed funds have co-invested in 1,300 companies in 100 countries in Africa, Asia, Latin America and parts of Europe. Committed investments total DKK 209 billion, of which IFU has contributed DKK 23 billion.
Neither aid, nor business grants
IFU is an independent government-owned fund offering advisory services and risk capital to companies wishing to do business in developing countries and emerging markets.
We are not a provider of aid or business grants. We work on a commercial basis, because we believe that business investment is a good way to create lasting economic improvement.
Furthermore, IFU is fund manager of a number of other investment funds, including the Danish SDG Investment Fund.
IFU makes risk capital available in the form of equity, loans or guarantees for project companies in one of the 146 countries eligible for IFU investment. In addition, IFU acts as an adviser during the establishment phase and a project company’s first few years in operation, typically pulling out when the company can operate on its own.
Advisory services are provided by IFU’s investment managers based in Copenhagen or at one of our regional offices in Africa, Asia and Latin America.
IFU and IFU managed funds have invested in 1,300 projects in 100 countries. Investments generally produce positive results and have turned out to be good business for all parties involved; for the host country, the partners and for IFU.
Good business for developing countries
Total investments to date amount to DKK 209bn, of which IFU has contributed DKK 23bn. This has helped to create close to one million jobs in the host countries. In addition, IFU’s presence has resulted in a transfer of knowledge and technology, the employees have received training and education, and economic activity and a basis of income have been created for the host countries.
IFU also helps to highlight a project company’s corporate social responsibilities of ensuring that employees are given proper working conditions and that a project company’s production is socially and environmentally sustainable.
Positive effects for Danish companies
IFU has co-invested with more than 900 Danish companies. In the vast majority of cases, the project companies established in developing countries have been a success, making a positive contribution to the overall performance of the co-investing Danish company.
The Danish companies have gained access to new markets, becoming able to plan and start up international and more efficient production. In many cases, this has also produced higher revenue in Denmark and stronger earnings.
IFU’s mandate was changed as of 31 December 2016, so that IFU is no longer tied to Danish companies or a Danish interest.Show moreShow less