IFU REOPENS FOR INVESTMENTS IN 26 COUNTRIES
IFU - Investment fund for developing countries reopens for investments in 26 additional countries. With the enlargement Danish companies can receive advice and financing from IFU in a total of 115 developing countries, including India, China, Vietnam and South Africa.
The Danish government has decided to double IFU’s country income limit. The effect is that IFU can offer advice and financing in 26 additional middle income countries like Thailand, Angola, Serbia and Peru. Thereby IFU is increasing its focus on emerging markets that hold good business potential for Danish companies.
– The government’s decision kills two birds with one stone, because IFU can help create economic and social progress in developing countries and at the same time assist Danish companies in gaining a stronger foothold in developing countries, which are the new emerging markets, says Finn Jønck, Managing Director of IFU.
IFU has previously been allowed to invest in the 26 countries that are now reopened. Therefore, the Fund will soon be able to offer professional advice and financing in these countries again.
The annual level of investments by IFU is approximately DKK 500m. The decision by the government stipulates that minimum half of the annual investments must be made in the poorer countries, primarily in Africa. The remainder may be invested in middle income countries where the interest of Danish companies is higher.
IFU is a self-financing fund that works on commercial terms and is dependent on return on investments. If IFU is to maintain its strong focus on the poorest countries, it is imperative that the fund can also invest in countries where the risk is low.
– If we are only allowed to invest in the poorest developing countries where the risk is high and the interest from Danish companies is low, then it is unlikely that we can run the Fund as a business. But with the decision by the government, we can continue on commercial terms and still keep a strong focus on the poorest countries, says Finn Jønck.
For further information, please contact Rune Nørgaard, Head of Communication, tel + 45 33 63 75 60.