IFU Annual Report 2024

Enriched Impact Investor · Found: 2026-03-11 10:59

Impact Fund Denmark 2024 annual report showing DKK 2.4 billion invested (80% increase), with focus on renewable energy, sustainable agriculture, forestry, and health in Global South.

Source: https://impactfund.dk/wp-content/uploads/2025/04/08052025-ifu-ar-2024-interactive.pdf

Funding Details

Funder

IFU – Investment Fund for Developing Countries

Funding Goal

To provide risk capital (equity, loans, guarantees) to private sector companies and public infrastructure projects in developing countries, supporting sustainable development aligned with the UN SDGs — with strategic focus on climate action, investments in Africa, and poor & fragile countries.

Funding Amount

Typical direct investments DKK 50–300m+; SDG Fund II ticket size DKK 150–300m. Instruments include equity, mezzanine, loans, and guarantees. No fixed minimum disclosed.

How to Apply

IFU sources investments proactively through its regional offices (Copenhagen HQ, Nairobi, Accra, New Delhi, São Paulo, Kyiv), DFI networks, investment banks, and fund managers. Prospective investees can contact IFU directly via ifu@ifu.dk or through IFU's website. The process involves initial screening (impact + return + exclusion list), preliminary assessment, full due diligence (ESG + financial), value/impact creation plan development, investment committee and board approval, and legal signing. Active ownership follows throughout the investment period.

Target Region

Africa, Asia, Latin America, parts of Europe (Ukraine); all OECD DAC developing countries. Strategic focus on Africa and poor & fragile countries.

Contact

IFU – Fredericiagade 27, 1310 Copenhagen K, Denmark | Tel: +45 33 63 75 00 | Email: ifu@ifu.dk | Website: www.ifu.dk | Regional offices: Nairobi, Accra, New Delhi, São Paulo, Kyiv

Last Checked

2026-03-11 16:19

Application Checklist

Eligibility

• Eligibility: Applicant must be a private sector company or fund manager (not an NGO or non-profit) operating in an OECD DAC-defined developing country.
• Eligibility: Business must operate within or closely adjacent to IFU's four focus sectors: green energy & infrastructure, financial services, sustainable food systems, or healthcare.
• Eligibility: Investment must demonstrate potential for both commercial returns (risk-reflective) and measurable positive development impact aligned with IFU's impact priorities (green societies; just and inclusive societies).

Project Scope

• Scope: At least 50% of IFU's new direct investments must qualify as climate finance — investments in climate-relevant activities are strongly prioritized.
• Scope: Investment must not appear on IFU's exclusion list (e.g., fossil fuel activities, UNESCO Natural World Heritage Sites, AZE sites, activities involving child/forced labour).

Required Documents

• Documents: Investee must commit to adopting a written sustainability policy, environmental & social management system (ESMS), anti-corruption policy, and grievance mechanism within an agreed timeframe.
• Documents: Investee must appoint a dedicated person responsible for sustainability and provide annual sustainability reporting (Annual Sustainability Report) to IFU during the investment period.

Constraints

• Constraints: IFU requires active ownership participation (board representation, semi-annual monitoring); investees must accept contractually binding impact creation plans and sustainability action plans.

Summary

IFU (Investeringsfonden for Udviklingslande) is Denmark's development finance institution, founded in 1967 and wholly owned by the Danish state. It provides equity, mezzanine, loans, and guarantees to commercially viable private sector companies operating in OECD DAC-defined developing countries across Africa, Asia, Latin America, and parts of Europe. In 2024, IFU and its managed funds contracted DKK 2.4 billion across 24 investments — an 80% increase over 2023 — with total capital under management reaching DKK 18.1 billion. IFU's investment strategy concentrates on four sectors: green energy & infrastructure (incl. renewables, waste, water), financial services (microfinance, SME lending, insurance), sustainable food systems (climate-smart farming, forestry, processing), and healthcare. Investments must create positive social and environmental impact alongside commercial returns, with at least 50% of new direct investments qualifying as climate finance under IFU's Climate Policy. Beyond IFU's own account, IFU manages several public-private funds — including the Danish SDG Investment Fund I & II, the Danish Climate Investment Fund, and the Danish Agribusiness Fund — as well as state-mandated facilities such as the Development Guarantee Facility and Danida Sustainable Infrastructure Finance. Eligible counterparties are private sector companies or fund managers operating in developing countries. IFU does not typically fund NGOs or non-profit organizations directly. Investment tickets for direct equity/loan investments range from roughly DKK 50m to DKK 300m+. Through the SDG Fund II, ticket sizes are DKK 150–300m. IFU conducts comprehensive ESG due diligence based on IFC Performance Standards, applies an exclusion list (including fossil fuels), and requires investees to establish sustainability policies and management systems within agreed timeframes. As a leading global impact investor — recognized by BlueMark on its leaderboard — IFU combines financial additionality with measurable development impact, targeting job creation, GHG emission reductions, renewable energy capacity, smallholder farmer support, and healthcare access across the Global South.

Historical Context

IFU was founded in 1967 and has invested in 1,381 projects across 100+ countries. A major reform in 2023 substantially expanded IFU's mandate and capital plan (DKK 20+ billion additional capital towards 2030). In 2024, investments increased 80% to DKK 2.4bn. The Danish SDG Investment Fund II was launched in November 2024 with DKK 2.7bn committed capital (target DKK 5bn by 2025). DSIF was fully integrated into IFU in 2024. IFU recorded a profit of DKK 228m in 2024 (vs DKK 146m in 2023). IFU has been a signatory to the Operating Principles for Impact Management since 2019 and received BlueMark leaderboard status in 2024.

Why it was added

DANIDA/Danish development funding for waste/CE

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