Africa Facility for enhanced Danish-African partnerships

Commercial partnerships

The Africa Facility supports Danish businesses’ engagement, partnerships and investments in Africa.

Targeted Danish companies and funds

Impact Fund Denmark has, in cooperation with the Ministry of Foreign Affairs, launched the Africa Facility. An important element of the facility is to open doors for Danish companies and foundations that wish to expand commercial activities across the 54 African markets. The total investment framework is DKK 350 million between 2025 and 2028. In 2025, DKK 100 million has so far been allocated to the facility.

Investment partnerships under the Africa Facility must comply with Impact Fund Denmark’s overall investment framework (see below), but offer increased flexibility for Danish companies.

Danish companies and funds can apply for funding for commercial investment partnerships that have a proven impact and are commercially sustainable. The facility is geared towards two levels of investment.

Two levels of investment

>15m

DKK early-stage venture capital investment partnerships

>25m

more mature investment partnerships

Various financial products

The Africa Facility may offer both loans, equity and mezzanine instruments, depending on the nature of the investment partnership. Investment partnerships may pursue different models, with investments in:

Possible partnership models

Danish companies

Danish companies with a view to establishing or expanding a business in Africa

Local companies with Danish partners

Local companies established, operated or financed by Danish partners
 

Local companies with commercial ties to Denmark

Existing African partners for Danish companies using Danish know-how, technology or service.
Suppliers of products and services to Danish companies.
Partners to Danish companies in other ways (e.g. in joint distribution).

Danish private funds

Private Danish funds that invest in local companies and institutions, or funds with Danish investors

African investment partners

African investment partners investing in local companies with commercial ties to Denmark. This could be, for example, financial institutions or development banks.
Increased flexibility for Danish companies

Investment partnerships under the Africa Facility must comply with Impact Fund Denmark’s overall investment framework, but offer increased flexibility for Danish companies.

  • Reduced investment size: Investment size under the Africa Facility has been reduced to a minimum of DKK 15-25 million (minimum DKK 75 million is standard)
  • Adjusted risk appetite and return requirements: Flexibility in return requirements is offered for investments with high or uncertain country risk under the Facility
  • Extended sectors: Possible to apply for investments in sectors outside Impact Fund Denmark’s four core sectors (green energy, financial services, health and food systems), where the fund still has relevant expertise.
  • Increased technical assistance: Increased technical assistance is offered for high-potential projects – including both ESG and initial due diligence.

It is a requirement for all Impact Fund Denmark’s investments to be able to document:

  • Impact contributions and measurable development effects
  • High sustainability standards (or a plan to achieve these with technical assistance)
  • Robust business model with the ability to generate returns
  • Clear plan for Impact Fund Denmark’s exit from the investment

50 years of investment experience in Africa

Impact Fund Denmark is Denmark’s most experienced impact investor. Since 1967, the Fund has made ~1350 investments in emerging and developing economies. The fund invests with both Danish and global companies and funds and has co-invested with several Danish companies in Africa.

We look forward to talking to you

We encourage Danish companies with existing activities in – or strategic interests on – the African continent to engage in dialogue on investment opportunities.

Investment Director, Public Infrastructure Finance

Jacob Klingemann

+45 33 63 75 28

Senior Investment Manager, Green Energy & Infrastructure

Magnus Nilsson

+45 33 44 12 12

General information about the Africa Facility