The Industrialization Fund for Developing Countries, IFU, participated in 25 new business projects in 2002 in co-operation with Danish companies.
Furthermore, the Fund injected additional capital into seven existing projects.
Total investments in new and existing projects amounted to DKK 360 million.
Compared to the year before, the number of investments in new projects remained unchanged, whereas the amount of IFU’s total investments increased slightly.
The new projects are estimated to create approximately 1,900 jobs for local employees.
– Thus Danish companies continue the globalisation, regardless of the global economic recession, says Sven Riskær, Managing Director of IFU.
The investments in new projects are divided on 15 countries. A large number took place in countries or regions that are among the poorest in the world, and where there is an urgent need for development. On the list are countries such as Bangladesh, Ethiopia, Mozambique and Vietnam.
Furthermore, investments were made in new projects in Algeria, the Ivory Coast, South Africa, the Philippines, Malaysia, the Maldives, Turkey and Mexico.
The number of new projects in China and India, which is usually relatively high, dropped somewhat in 2002.
The average investment of share capital and loans in the new projects was DKK 11m.
Private investments create development
IFU promotes the business opportunities of Danish companies in some of the poorest regions in the world, and their interest in investing there. Seen over a number of years and again in 2002, a comparatively large part of the Danish investments with IFU participation has been made in the least developed countries or in poor areas of the better situated developing countries. Neither Peru nor China is normally counted among the poorest countries, but country statistics often cover differences within the borders. Examples of investments in 2002 show how Danish investments can benefit pockets of poverty.
Loan from IFU secures expansion in Peru
In 2002 a loan from IFU of DKK 7.5m to Danper Trujillo in Peru allowed the company to expand and diversify, in spite of the difficult credit situation in Peru.
Peru is the world’s largest producer of asparagus, and Danper has become Peru’s second largest exporter of asparagus in jars and cans. Demand has made it desirable to expand, and the company also plans to diversify the product range.
The expansion of the company brings economic activity on many levels to one of the least developed regions of Peru. Danper is located in Trujillo, 500 km north of the capital Lima. The company has 750 employees. 200 local farmers deliver asparagus, and many of them employ casual workers during the seasons.
Danper has established itself as a socially responsible company, which has e.g. established a health clinic, where primarily employees, but also their children and the farmers are treated for free and given preventive medic-care and health education.
In 2002 Danper obtained the Social Accountability Standard 8000 certificate from the World Trade Organisation in recognition of its socially conscious management.
With funding from the Environment and Training Fund (fund financed by Danish development aid and administered by IFU) Danper carried through improvements in 2001, which included upgrading of the health clinic, air conditioning in the factory hall, and individually adjusted work places.
As the first food industry in Peru, Danper obtained the ISO 9002 certificate in 2000. Furthermore, Danper has obtained the HACCP quality certificate, which relates to food safety.
The Danish partner is the businessman Arne Berg.
New company in “forgotten” part of China
While the coastal regions in China are booming, international investors have shown little interest in the western parts of the country. But Nanning Qiaohong New Materials Co. Ltd. is being established in one of the “forgotten” areas of China. The company aims at producing i.a. sanitary towels and hygiene articles for the Chinese health service. The technology is delivered by the Danish partner, Dan-Web. The factory is being established in cooperation with Nanning Sugar Manufacturing Co. Ltd.
Since the late 1980s IFU has invested in nearly 50 companies in China. Most of them in Beijing or the growth centres. IFU is putting emphasis on spreading the investments to other parts of China.
Copenhagen, 23. januar 2003