In 2014, IFU focused strongly on its core activities and on a number of development activities that will double the amount of IFU’s investments in the long term and thus contribute to further sustainable growth in developing countries and strengthen the global position of Danish trade and industry.
– IFU is in an interesting process of expanding with new activities in areas that will benefit developing countries and Danish trade and industry, said Tommy Thomsen, CEO of IFU.
Net income of DKK 149m
In 2014, IFU and IFU managed funds contracted investments of DKK 960m. IFU alone invested DKK 681m, of which DKK 200m was in a new climate investment fund, while DKK 481m was invested in 37 projects in Africa, Asia, Latin America and Europe. Total expected employment in the 21 new projects is at more than 5,500 people.
Gross yield from share capital investments was 11.4 per cent, and net income was DKK 149m.
Renewable energy and more food
Beginning of 2014, IFU established the Danish Climate Investment Fund, with a total capital investment of DKK 1.3bn, in a cutting edge public-private partnership with institutional investors. Furthermore, IFU has prepared the groundwork for a new agribusiness fund, expecting to reach financial close in 2015.
The purpose of both funds is to match the demand in developing countries with the strengths of Danish trade and industry, thereby contributing to reduction of CO2 emissions and extension of sustainable energy supply and increased food production in developing countries and improved market opportunities for Danish companies, respectively.
– Danish companies have a lot to offer in developing countries, and with the two funds we believe that we can make commercial investments that will benefit developing countries, Danish companies and the funds’ investors, said Tommy Thomsen.
Small and medium-sized companies to become more successful
To help small and medium-sizen comanies achieve success in new markets, IFU has established a new SME facility in collaboration with Danida.
– It is our experience that a number of small and medium-sized companies face difficulties when they set up business in developing countries. Therefore we have established a facility to support them in their preparations and during the start-up phase so they will experience success faster, said Tommy Thomsen.