Annual report 2025: Impact Fund Denmark invested DKK 5.1 billion in sustainable development and strong partnerships in the Global South and Ukraine.
2025 was a significant year for Impact Fund Denmark. Despite increased global uncertainty and geopolitical changes, the Fund significantly increased its investments, reaching a historically high level of DKK 5.1 billion. Investments have been made across markets in the Global South and in Ukraine and are reflected in the Fund’s 2025 annual report.
Investments totalled DKK 2.4 billion in private sector investments, DKK 1.7 billion in public infrastructure financing and DKK 1.0 billion in development guarantees. Overall, they contribute to greener economies and more inclusive societies in line with Denmark’s development policy objectives towards 2030.
2025 clearly demonstrated the importance of development finance in building stable partnerships and long-term sustainable development – also in a world of high geopolitical tensions. With a record-high level of investments, Impact Fund Denmark is making a targeted contribution to the green transition, economic growth and increased resilience in some of the world’s most vulnerable countries.
Focus on climate, Africa and fragile states
In the period 2023-2025, Impact Fund Denmark has met the targets set out in the strategic ownership document, with a particular focus on climate, Africa and poor and fragile states – including Ukraine.
Africa remains the Fund’s primary focus area. In 2025, Impact Fund Denmark invested DKK 1.4 billion in the private sector in Africa, the highest level to date. At the same time, new offices were established in Lagos and Johannesburg to strengthen the regional presence and local capacity.
Progress was also made on climate action and support for the world’s poorest countries – two areas that are increasingly interlinked as climate change hits vulnerable regions hardest.
Strengthened organisation and expanded financial toolbox
In 2025, Impact Fund Denmark strengthened the organisation with new management skills and increased market expertise. The transition to the new name and the preparations for a new headquarters in Copenhagen support the Fund’s continued development.
At the same time, the Fund’s financial toolbox was expanded when the government decided to make the development guarantees permanent and increase the framework by DKK 10 billion until 2030. This is expected to increase Impact Fund Denmark’s total capital under management from DKK 26 billion to approximately DKK 45 billion in 2030.
Profit for the year affected by currency fluctuations
The financial result for 2025 ended with a loss of DKK 399 million, primarily due to significant negative currency fluctuations. Currency effects contributed negatively by a total of DKK 537 million, mainly because of declines in the US dollar and the Indian rupee against the Danish krone. The underlying performance of the investments remained positive when measured in local currencies, but the currency movements reduced the overall result when measured in Danish kroner.
The annual report gives an overall account of the year’s results and expectations for the coming years. Impact Fund Denmark will continue to work to support Denmark’s development policy objectives and deliver both financial returns and documented development effects on a large scale.
Read the full annual report.
SVP, Communication & Marketing
Charlotte Holst Frahm
+45 41 38 12 42
