IFU – Investment Fund for Developing Countries

About The Fund

The Investment Fund for Developing Countries (IFU) is a government-owned investment fund headquartered in Copenhagen, Denmark. They operate as a sovereign wealth fund with a mandate to promote sustainable economic growth in developing countries by providing investment capital and expertise. Their investment thesis revolves around achieving the United Nations' 17 Sustainable Development Goals (SDGs) and creating a positive impact in local communities. IFU invests in a range of industries within developing countries, with an emphasis on creating jobs, supporting renewable energy projects, and improving local welfare through increased tax contributions of their investee companies. With expert knowledge in handling both debt and equity investments, IFU has a track record of investing in over 1,318 projects across 142 countries. Their active portfolio includes 161 companies with a total investment of 11 billion DKK. The fund is a major player in creating employment, having been associated with nearly 280,000 jobs in active investments, and historically close to one million jobs. IFU has demonstrated commitment to environmental sustainability with over 1,950 megawatts of solar and wind energy investments in developing nations. Their project companies reported local corporate tax contributions of 3.5 billion DKK in 2020, indicating a strong foundation for enhancing local economies, especially in Africa where 57 percent of their impact is reported. IFU not only manages its own assets but also manages a number of funds established through public-private partnerships, including the Danish SDG Investment Fund, which makes commercial investments aligned with the SDGs, and Danida Sustainable Infrastructure Finance, which offers favorable financing terms for sustainable infrastructure projects in developing countries. They advise and support companies looking to invest in developing nations, offering both capital and professional guidance. IFU presents examples of their impact through investments, such as DCDC in India that works on increasing the accessibility to affordable dialysis treatment and Global Tea, which partners with 3,000 small-scale farmers.