The Danish government, backed by the Social Liberal Party, the Socialist People’s Party, the Conservative People’s Party, the Alternative and the Red-Green Alliance, has just launched a new development policy strategy that focuses on mobilising capital, creating equal partnerships and ensuring that each invested Danish krone creates the greatest possible effect.
The strategy cements Impact Fund Denmark’s role as an experienced and strategic player in Danish development finance. It is based on the strengthening of the fund with a new name and plans to double the fund’s activities by 2030 with new public and private capital.
“In this time of geopolitical upheaval, we need to run longer on the litre. It is about leveraging our resources and using public funds as leverage to attract private capital. This is how we create real positive change on a large scale.”
Impact Fund Denmark has already shown that the model works. For each public krone invested, an average of four private kroner is mobilised. This makes the fund an effective catalyst for sustainable development and economic transformation in the Global South.
Public-private partnerships with effect
The strategy recognises that traditional aid can no longer stand alone. Public and private investment must go hand in hand to bring about lasting economic and social change – especially in emerging regions with high demand for jobs, infrastructure and green energy.
“We are an experienced player with proven results in emerging economies. Our model balances high impact with financial returns and is based on strong partnerships with both Danish and international players. It is precisely this approach that we see reflected in Denmark’s new development policy strategy. Impact Fund Denmark’s SDG funds show how public funds can be used as leverage to mobilise private capital – and how, together with pension companies and funds, we have created a model that combines returns with real climate and development effects. It is not either or – it can be both,” said Lars Bo Bertram.
Africa as a growth continent
As part of the new strategy, Denmark will strengthen the financing instruments that can mobilise more capital for sustainable investments in Africa and other areas of the Global South.
“Many African countries have enormous economic potential. With our investments in green energy, food, health and financial services, we are helping to create jobs and new opportunities – also for the big new African youth generations. It is in everyone’s interest – including Denmark’s,”
Impact Fund Denmark expects, among other things, to launch a new Africa Facility after the summer, which has a special focus on more Danish companies pursuing opportunities on the African continent – and to create strong Danish-African commercial partnerships. So far, DKK 100 million has been allocated to the Finance Act in 2025.
Danish companies as partners in global impact
Impact Fund Denmark also welcomes the strategy’s focus on further new business instruments, including targeted financing for small and medium-sized enterprises and a focus on impact investments in collaboration with funds, and looks forward to helping shape them in close interaction with business organisations, companies and other stakeholders.
“Impact Fund Denmark is Denmark’s development finance institution. We invest to create lasting change with impact as the primary goal – and always looking at how it benefits Danish interests. We will now have the opportunity to cooperate even more with Danish companies in the areas of green energy, health, financial services and food systems – areas where Denmark is strong. We are very much looking forward to that,” said Lars Bo Bertram.
With a new name, doubling of the capital to over DKK 35 billion in 2030 and a clear mission to invest for impact, Impact Fund Denmark will lift its share of Denmark’s global responsibility and the ambition to strengthen the country’s position as a valuable and visible development partner.
SVP, Communication & Marketing
Charlotte Holst Frahm
+45 41 38 12 42
