In 2023, IFU invested DKK 1.3bn in total. The investments were made in 17 private sector companies in Africa, Asia, Latin America and Ukraine. DKK 245m was invested in the Indian company Blue Planet, which recovers old landfills and recycles the material. With the investment Blue Planet furthermore plans to operate one of the largest e-waste recycling centres in India. IFU also invested in ODM, delivering cancer diagnostic and treatment in Morocco. The company is expected to diagnose approximately 200,000 patients and treat 700,000 in the years to come.
The financial result for the year was a profit of DKK 146m, which was a significant improvement compared to the loss of DKK (57)m in 2022. This is due to the positive result of the Danish SDG Investment Fund, higher interest rates on loans and reversed provisions made in 2022 on IFU’s loan portfolio in Ukraine.
“We are happy with the investments of the year and with the financial result. As a commercial impact investor, it is important that we can create a financially sustainable business, as well as contribute positively to the green transition, improved access to healthcare and more and healthier food in the developing countries, among other things.”
Søren Peter Andreasen, acting CEO in IFU.
Significant increase in future investments
In 2023, the Danish government announced a reform of IFU, which will double IFU’s capital under management from DKK 15bn to more than DKK 30bn by 2030. Furthermore, a new executive management came into place with CEO Lars Bo Bertram, who will join IFU on 1 June, Deputy CEO Søren Peter Andreasen and CIO Lars Krogsgaard.
“I am pleased that the Danish government has decided to strengthen IFU’s mandate. And with the new executive management in place, we have all the prerequisites for significantly increased investments and strengthening of the effort to create sustainable development with focus on the green transition, Africa and fragile states.”
Michael Rasmussen, Chairman of IFU’s Board of Directors.
The Danish SDG Investment Fund fully invested
The Danish SDG Investment Fund, which is backed by Danish pension funds and private investors, was fully invested in 2023. A total of DKK 14.5bn has been invested in 27 companies, of which DKK 3.7bn was contributed by the SDG Fund. IFU is now in the process of raising SDG Fund II.
“The Danish SDG Investment Fund has proved that Denmark can make a difference when we work together. We have contributed to the mobilisation of more money to realise the Sustainable Development Goals in developing countries, and we are also on track to deliver solid return to the investors,” said Søren Peter Andreasen.
Strong results from more than 160 active investments
The companies that IFU has invested in support more than 420,000 direct jobs and provide financial services to 20 million people, of whom almost 80 per cent are women. Furthermore, the companies have installed 2,800 megawatts renewable energy. In total, 5,000 gigawatt hours of green electricity were produced, resulting in GHG savings of 3.5 million tonnes, of which 380,000 tonnes can be attributed to IFU.