Impact Fund Denmark, together with the Danish Ministry of Foreign Affairs, is launching a new DKK 350 million Africa facility to support Danish companies’ engagement and investments in Africa. The facility is part of the Danish government’s 2024 Africa Strategy.
Many of the world’s fastest growing economies are located in the Global South, especially in Africa. Yet only 1.5% of Danish investments abroad go to Africa, and imports from Africa account for less than 1% of Denmark’s total imports. This shows untapped potential, which requires long-term commitment, risk-taking and persistence from the Danish business community and Danish investors.
It is crucial that we increase Danish companies’ investments in Africa. This is in our own interest and will benefit local African communities at the same time. The new Africa Facility is a good example of how we bring the private sector more into play and how we increase the interaction between development cooperation and economic diplomacy.
Strategic benefits for Denmark
Expansion into new markets and rethinking value chains are crucial at a time of increased geopolitical uncertainty. The Africa Facility improves Danish companies’ access to finance with more flexibility and offers of technical assistance for promising projects.
With the Africa Facility, we want to create a win-win situation where both African communities and Danish companies benefit. All our investments under the Africa Facility must be both commercially sustainable and generate positive societal impact. Together with the Danish companies, we look forward to strengthening our engagement in Africa.
Like Impact Fund Denmark’s other investments, investments under the Africa Facility must meet requirements for ESG, impact and financial return. In addition, investments must be located in a developing country
However, the mandate of the Africa Facility is broader than usual, which means that more investments with Danish economic interests can be considered. The specific requirements and opportunities for applying can be found here.
Working together for success
Green energy and water supply, food and health are examples of areas with growth potential for Danish companies with innovative solutions and strong competencies. There are plenty of opportunities for partnerships between Denmark and Africa, but they are untapped. Cross-cutting cooperation between public institutions, business organisations, the financial sector and impact investors is important to achieve success in this work. Impact Fund Denmark therefore offers risk finance and technical assistance to Danish companies’ promising commercial partnerships on the African continent. Dedicated advisors are ready to begin the dialogue on possible projects.
SVP, Communication & Marketing
Charlotte Holst Frahm
+45 41 38 12 42
