Copenhagen to double its investments in favor of sustainable development in Africa
At the 78th General Assembly of the United Nations (UN) which continues in New York in the United States of America, the Prime Minister of Denmark announced the reform of the Investment Fund for Developing Countries (IFU ), the financial arm of Danish diplomacy. According to Mette Frederiksen, IFU investments will be doubled by 2030.
The reform of development financing institutions is taking shape. Denmark, which has increased its investments in Africa tenfold in recent years, is taking the lead by reforming its Investment Fund for Developing Countries (IFU). The process announced at the 78th General Assembly of the United Nations (UN) thus results in an increase in IFU investments in developing countries.
The IFU investment ceiling will increase from €2.1 billion in 2022 to €4.7 million by 2030. At least 50% of these investments will be made on the African continent . “The IFU reform is revolutionary for Danish development assistance, and it is important that we can present it at a time when developing countries need more funding,” says Dan Jørgensen, Minister Danish Development Cooperation and Global Climate Policy.
The contribution of private companies to financing the SDGs
He added that “we need new tools to unlock more private capital, and the IFU is ready to provide them at an even higher level. This is important for the climate, developing countries and Denmark's role as a pioneer in ecology .
The reform of the IFU also resulted in an increase in its climate finance which will increase from 268 million euros per year (2022) to an amount between 670 million and 940 million euros by 2030. is the same for the Danish SDG Investment Fund of 670 million euros, which should be funded to the tune of 400 million euros by private investors “wishing to make sustainable investments” , indicates the IFU . The development finance institution is continuing its strategy of financing private companies and projects developed within the framework of public-private partnerships (PPP).
A few months ago, the IFU invested over $20 million in Continental Blue Investments Ghana (CBI). The Accra-based cement manufacturer will rely on this investment for the production of low-carbon cement. The IFU also invests in renewable energy projects, including the 28.5 MWp Golomoti solar photovoltaic plant in Malawi. The fund also focuses on the neglected clean cooking sector in Africa.
