IFU has published its 2019 annual report. IFU contracted 25 investments last year at the amount of DKK 1.1bn. Investments were made within renewable energy, the financial sector in microfinance and banks, as well as within agribusiness and food.
– In 2019, we continued our investments in renewable energy in the developing countries. IFU has now invested in more than 1,150 MW solar and wind power and has thereby made a significant contribution to the green transition in Africa, Asia, Latin America and Ukraine, said Torben Huss, CEO of IFU.
– We also continued our investments in the financial sector, where the objective is to invest in microfinance and banks that offer financing to people in rural areas, in particular, who have difficulties obtaining loans to develop their businesses. I am very pleased that our total investments in microfinance have contributed to reaching 25 million clients, of whom 20 million are women.
Additional capital
In 2019, IFU was granted additional capital through a commitment of DKK 1bn from Denmark’s green future fund, as well as DKK 200m from Danida to make a special effort in the poorest and most fragile states in Africa. The DKK one billion is a loan frame, while the DKK 200m is a capital increase.
– The additional capital made available to us is an important contribution to increasing our efforts within the green transition and our investments in the poorest countries in Africa, where private investors are more reluctant, as the commercial and economic risks are extraordinarily high.
Torben Huss., CEO of IFU
New sustainability policy linked to Sustainable Development Goals
During the year, IFU updated its sustainability policy, which is now linked more directly to the Sustainable Development Goals. The same applies to IFU’s climate policy, which puts an end to new investments in energy projects based solely on fossil fuels, and includes the aim to increase the climate-relevant part of IFU’s portfolio to at least 40 per cent of the total investment volume.
– An important signpost in our investments is to support the Sustainable Development Goals, and therefore I am pleased that our sustainability policy is now more directly linked to the Sustainable Development Goals and thereby increases the focus on our contribution to meet them, said Torben Huss.
No payment of dividend in 2019
The financial result for 2019 was a profit of DKK 28m.
– The result for the year was below expectation, but still an improvement compared to the loss in 2018, said Torben Huss.
IFU’s board has recommended payment of dividend to the State in the amount of DKK 13m. However, the minister for development cooperation has an extraordinary decision not to pay out dividend, as it gives IFU the opportunity to support its project companies in connection with the covid-19 pandemic.
– I am happy that we have agreed with the minister that this year’s dividend under the special circumstances can be used for initiatives to support e.g. employment and training in our project companies and thereby contribute to mitigating the negative effects of the covid-19 pandemic in the developing countries, said Torben Huss.