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22 March 2002.

IFU CREATES 2,400 JOBS IN POOR COUNTRIES

Last year The Industrialization Fund for Developing Countries (IFU) helped create 2,400 new jobs in developing countries, according to IFU's Annual Report.

For each new job IFU has invested approximately DKK 100,000. At the same time the investments have resulted in Danish exports worth more than DKK 200 million and thus contributed to employment in Denmark.

The Annual Report states that IFU has decided to move its regional office in Southern Africa from Zimbabwe to South Africa. The move is expected to take place in the autumn of 2002.

The economic slowdown and the changing security situation in the World did not affect IFU’s level of activity in 2001. IFU co-finances Danish investments in developing countries, and the number of investments in new project companies reached 25 in 2001, compared to 22 the year before.

In 2001 IFU’s accounts showed a profit of DKK 11.5 million.

Facts about IFU
Since its establishment in 1967 The Industrialization Fund for Developing Countries (IFU) has invested more than DKK 4.5 billion in 449 projects in 71 developing countries.

IFU is a self-governing institution established by Act of Parliament. IFU offers to participate in Danish companies’ investments in developing countries. Most Danish companies utilise this opportunity to spread the financial risk and get useful advice when investing in developing countries.

Promoting Investments
The project companies are most often established as joint ventures, with the Danish company and IFU – often in cooperation with a local partner – establishing a new limited liability company.

IFU usually participates for 6-8 years and contributes – through the boards of the project companies – with its local knowledge and experience from previous projects. When a project company is well consolidated, IFU sells its shares. The funds made available can then be injected into new project companies.

IFU’s capital and advice are often decisive factors when private investors take a risk by investing in developing countries. Thus, IFU can get a lot started with relatively small means. Every time IFU invested DKK 1,000 in 2001, DKK 8,600 was injected into the projects from other parties.

Copenhagen, 22 March 2002

For further information, please contact
J Dan Jensen, Deputy Managing Director, Tel +45 33 63 75 00