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
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. Furthermore, IFU is fund manager of a number of other investment funds, including the Danish SDG Investment Fund.
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.
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 more than 1,280 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, for the Danish company and for IFU.
Good business for developing countries
Total investments to date amount to DKK 201bn, of which IFU has contributed DKK 22bn. 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.
Profitable return to IFU
Over the years, IFU has had a fair return on its invested funds. Gross yield on share capital has on average been close to 7 per cent within the last five -year period. The profit is used to cover IFU’s operating costs and for investing in new project companies.+ Read more- Read less