MFA will commission an independent evaluation of the Investment Fund for Developing Countries (IFU). IFU has a central role in Danish development cooperation. The evaluation will include all IFU activities since the last evaluation with an emphasis on the last 10 years of operation. It will include IFU investments and as relevant also other funds managed by IFU.

IFU – the Investment Fund for Developing Countries – provides risk capital and advice to companies wanting to set-up a business in developing countries. IFU is a self-governing fund under the Danish Ministry of Foreign Affairs and was established by the Danish government in 1967. The overall objective of IFU is “promoting investments that support sustainable development in developing countries and contribute to the realisation of the Sustainability Development Goals”.

IFU provides capital in the form of equity investments, loans and guarantees to companies in developing countries. IFU combines the financial services with technical assistance to various aspects of business development and strategic advice at company board level. IFU furthermore serves as fund manager for a number of dedicated funds.

In view of the continued central role of IFU in Danish development cooperation, the MFA will commission an independent evaluation of the organisation. The evaluation will serve both learning and accountability purposes both for IFU and for the MFA by documenting and analysing the relevance, efficiency, effectiveness, impact and sustainability of IFU and its investments.

More specifically, the two objectives of the evaluation are to:

- Assess IFUs contribution to the development and commercial outcomes through its investments in developing countries in line with its mandate;

- Assess IFU’s strategy and envisaged future role in Danish development cooperation, and whether the organisation is fit for purpose.

The evaluation will include all IFU activities since the last evaluation, although with an emphasis on the last 10 years of operation. It will include IFU investments and, to the extent relevant, other funds managed by IFU.

The evaluation will comprise all five OECD/DAC evaluation criteria of relevance, efficiency, effectiveness, impact and sustainability at the level of IFU as an organisation and will involve work in Denmark as well as field work in several partner countries.