Different types of advice and financing
The Investment Fund for Developing Countries (IFU) invests in developing countries along with private investors and offers various types of loans to promote private investments with a clear development objective. Together, the Ministry of Foreign Affairs and IFU have mobilized capital from private sources, including major Danish pension funds, for investments in developing countries and in emerging markets. Since 2011, the Ministry of Foreign Affairs has transferred approx. DKK 800 million to IFU and to investment funds managed by IFU. At the same time, large pension funds cooperate with IFU to create both development results and returns to pension customers in Denmark. In total, it amounts to DKK 5-6 billion, which can help achieve the Sustainable Development Goals (SDGs). Along with other private investments in the projects, it could amount to approx. DKK 30 billion.
Danida Sustainable Infrastructure Finance (DSIF) provides soft loans for funding of sustainable infrastructure projects in sectors such as energy, water, and sanitation. DSIF supports major infrastructure projects, primarily public, which cannot raise funding under market conditions.
The projects must be sustainable, support the developing countries' development plans, and contribute to creating a better framework for sustainable growth and employment in line with the SDGs.
The Ministry of Foreign Affairs’ Trade Council offers specific advice on new markets and has counsellors in many countries that are ready to assist Danish interests.