The Danish SDG Investment Fund has made a significant stride in 2023, achieving full investment with 27 private sector investments in developing countries. The impact of these investments is substantial, and includes servicing 1.2 million patients primarily in Africa, installing over 1,800 megawatts of renewable energy, and supporting 100,000 smallholder farmers. Notably, almost one-third of all investments have been made in Africa, underscoring the fund’s commitment to the continent’s sustainable development.
“2023 marked a milestone for the Danish SDG Investment Fund. Our focused efforts on mobilising private capital towards sustainable development goals have yielded tangible results that resonate with our mission. We are proud to contribute to the global agenda for a sustainable future,” said Lars Bo Bertram, CEO of IFU, which is fund manager for the Danish SDG Investment Fund.
Fivefold mobilisation of private capital
The Danish SDG Investment Fund was set up in 2018 as a public-private partnership between large Danish pension funds, private investors and IFU. The purpose was to use public funds as a lever for mobilising private capital towards the Global Goals, which cannot be achieved through public development aid alone.
To date the result is that for every one Danish kroner of public funds invested by IFU, close to five kroner of private capital has been mobilised.
“The Danish SDG Investment Fund has proved to be a very useful tool to mobilise Danish pension funds and private investors in making commercial investments that provide a return to pension savers, as wells as support the green transition and improve livelihood in developing countries. We hope that more will join the Danish SDG Investment Fund II, which we are now fundraising for,” said Lars Bo Bertram.
Support local development and improve ESG management
The investments have supported around 40,000 jobs and generated DKK 5.3 billion in domestic purchases, DKK 3 billion in wages for company employees and DKK 1 billion in corporate taxes, which has a direct positive impact on local living conditions and welfare.
Also, on ESG management the companies have improved on several requirements that are part of the investment contracts. This includes the implementation of a written sustainability policy and an environmental and social management system as well as a written stand against corruption, for example.
“The impact report illustrates very well the concrete impact that our investments have on local living conditions, and how they support the realisation of the global goals. And even better, the impacts will continue to increase in the coming years as the companies will further evolve. As an example, the current installed renewable energy capacity is expected to grow threefold, and the number of annually served patients will presumably be close to three million before we exit the investments,” said Lars Bo Bertram.
Read the Danish SDG Investment Fund Impact Report here