IFU’s annual report 2023 gives an overview of our investments, the impact they generate and our strategy for creating economic and sustainable progress in developing countries and emerging markets. Enjoy the read.
2023 was an eventful year. IFU invested DKK 1.3bn and recorded a net profit of DKK 146m. The Danish government decided a reform of IFU that will double IFU’s capital towards 2030 and enable IFU to deliver impact and return at a much larger scale. We got a new executive management group in place and started fundraising for the second Danish SDG Investment Fund.
We support the building of green, just and inclusive societies. Our four focus sectors are green energy & infrastructure, financial institutions, sustainable food systems and healthcare. Moreover, IFU has a priority for investments in Ukraine assisting the country in tackling war time challenges and recovery.
IFU supports the UN Sustainable Development Goals (SDG) by making impact investments in developing countries and emerging markets. Get a four-year overview of our efforts and results on 15 of the 17 goals.
The Danish SDG Investment Fund was set up together with large Danish pension funds and private investors. In total the fund has invested DKK 3.7bn in 27 private sector companies. In 2023, DKK 1bn was invested in renewable energy in Mexico, healthcare in Morocco, as well as microfinance, landfill reclamation and e-waste recycling in India.
DSIF, Danida Sustainable Infrastructure Finance, provides concessional financing for large infrastructure projects within water, sanitation and energy. Currently, DSIF is working on four large water projects in Bangladesh, Pakistan and Kenya at a total cost of more than DKK 7bn. DSIF is also engaged in Ukraine supporting short-term emergency and long-term recovery projects.
The Danish government has mandated IFU to issue sovereign development guarantees to mobilise capital for sustainable development, with a special focus on mobilisation of climate finance in developing countries. The guarantee frame is DKK 2bn. During 2023, the DGF team was fully established and has started to build a strong pipeline.
The Sustainability Statement gives you an insight into our work. We explain our investment process and related issues, including due diligence, climate change, biodiversity, workers in the value chain, affected communities and governance.
In 2023, IFU recorded a net profit of DKK 146m. The portfolio managed to overcome negative currency effects and provided a positive result reflecting strong core performance. During the year it was possible to reverse part of the provisions made on the Ukraine portfolio in 2022 following the Russian invasion. Read the financial review here.
IFU’s investment will further boost Blue Planet’s capabilities in two key areas in India – landfill reclamation and e-waste recycling.
Oncologie et Diagnostic du Maroc (ODM) will enhance cancer treatment accessibility and quality across Morocco with an investment of DKK 157m from IFU.
IFU has invested DKK 75m in Nithio that provides clean energy solutions to households and small enterprises in Africa.
Smart Joules to expand cooling solutions business, reducing energy consumption in commercial and industrial buildings in India.