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15 May 2003.

GOOD RESULTS DESPITE GLOBAL RECESSION

The Industrialization Fund for Developing Countries (IFU) lives up to its objective of contributing to long-term Danish development aid and increased internationalisation of Danish trade and industry. At the same time, IFU is a reliable partner in unsettling times.

The Industrialization Fund for Developing Countries (IFU) lives up to its objective of contributing to long-term Danish development aid and increased internationalisation of Danish trade and industry. At the same time, IFU is a reliable partner in unsettling times.

In 2002, IFU once more lived up to its objective of promoting business development in the developing countries in order to contribute to creating sustainable growth and development in a wide selection of the poorest countries in the world. Small as well as large companies and Danish partners benefit from IFU’s expertise and risk capital in an international market affected by unrest and insecurity.

It appears from IFU’s Annual Report 2002 that IFU invested DKK 281m in 25 new projects and DKK 78m in existing projects. Hereby IFU contributed to total investments in developing countries of DKK 944m, which is expected to create/preserve well over 2,100 jobs in the host countries.

“Not only does IFU contribute financially, but IFU also ensures transfer of knowledge and technology from Danish companies to developing countries”, says Sven Riskær, Managing Director of IFU, who emphasises that all project proposals are thoroughly appraised to make sure that they have developmental substance and at the same time are viewed as commercially viable.

“Like its sister fund IØ, IFU was created with the double aim of being an instrument for the Danish international development effort and an important source of financing and advice in connection with the globalisation process of Danish companies. Today, both roles are more important than ever before, and now, more than ever, IFU has the accumulated experience and knowledge combined with considerable financial weight to fulfil both roles”, he says.

Danish companies’ investments in areas where the level of costs is low, together with the emergence of new markets, have increasingly become a competitive parameter and often even a precondition for the future growth and survival of the Danish companies.

In 2002, IFU extended and targeted its net of advisers in a number of recipient countries. The Regional Office in Africa moved from Harare in Zimbabwe to Johannesburg in South Africa. Furthermore, IFU opened adviser offices in Lomé, Togo, and in São Paulo, Brazil.

Despite global recession, IFU’s accounts for 2002 showed a profit of DKK 18.9m compared to a profit of DKK 20.3m the year before

For further information, please contact Managing Director Sven Riskær, tel +45 33 63 75 00