Dias nummer 1

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Investments for Development
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Why Africa?
Investments for Development
Eastern Europe 6,4
East Asia 9,2
Euro Zone 2,4
USA 3,1
South Asia 8,2
Positive global conditions emerging
markets Growth rates 2006 Source World Bank
Sub-Sahara 5,3
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Investments for Development
POPULATION OVER 15 MIO.
Map of Africa African IFU countries with a
population over 15 mio. Project locations
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Investments for Development
GROWTH RATES ABOVE 5
Map of Africa African IFU countries with a GDP
over 5 Project locations
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FDI in Africa a few numbers (2006)c
Investments for Development

• Total African FDI USD35.5bn
• Only 9.3 of total global emerging market FDI
• 90 of FDI in 10 countries oil gas, mining,
  telecom and financial sector.
• Mainly oil producing countries
• Limited vertical integration with local economies

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IFU in Africa a long track record.
Investments for Development

• 1980s 5 projects per year
• 1990s 6 projects per year
• 2006 12 new projects and 5 additional
  investments in existing projects.
• 2006 DKK248m (KES 3.2bn) 49 of IFU
  investments.
• At year-end 2006 IFU
• Invested an aggregate DKK2.1bn (KES27.1bn) in
  Africa (30 of historic total)
• In 175 projects in 31 countries.

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Investments for Development
Project locations 175 investments
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Motivational factors for Danish FDI in Africa
Investments for Development

• Companies primarily invest to gain
• Market access/high growth regions/ first mover
  advantages
• Reduction of production costs
• Access to raw materials
• Export advantages in the region
• Take advantage of B2B support incubator
• Sale of equipment

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IFU committed to grow in Africa
Investments for Development

• 2007 (forecast) 14 new projects, DKK240m
  (KES3.1bn)
• 2008 (estimate) 14 new projects, DKK250m
  (KES3.2bn)
• Nairobi Office to strengthen focus on East Africa
  regional reach, knowledge and network from
  Nairobi
• Target to increase current East Africa portfolio
  of 8 projects to 18 project over the next 18
  months.
• Tourism, energy, agro-business, agro-processing,
  ICT, textiles, infra-structure (port, cement
  a.o.), and education.

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IFU sector experience
Investments for Development

• Tourism Kenya, Egypt, Morocco, Gambia,
  Mozambique, South Africa, Vietnam, Russia,
  Bolivia, Cuba Pan-African investment fund.
• Energy Panama, Sri Lanka, Latvia, Estonia,
  Vietnam, Armenia, India.
• Agro-business processing Zambia, Uganda,
  Congo, Swaziland, Kenya, Togo, Egypt, Tanzania,
  Cameroon, Zimbabwe, Nigeria Eastern Europe, Asia
  and Latin America.
• ICT Nigeria, Uganda, Nicaragua, India, Hungary,
  Rumania Ukraine.
• Textiles Tanzania, Kenya, Bangladesh, China,
  India, Estonia, Latvia, Lithuania, Poland
  Bulgaria
• Infra-structure Benin, Angola, Egypt, Ghana,
  Nigeria, Senegal, Uganda, Argentina, Uruguay,
  India, Pakistan, Philippines Pan-African
  investment fund.

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Investments for Development
Objective of IFUs African investments
Involve low-end segments, and allow them to ?
become part of market economy ? satisfy daily
needs, better quality of life. Involve the poor
part of the population in the market economy and
make them consumers in stead of recipients of
help. Create local business opportunities, such
as vendors, distributors, finance, and thus
improve life quality Good Business is good
development!
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Regional Office for East Africa Nairobi, Kenya
Investments for Development
Brian Muggeridge Andersen Resident
Representative Mainga Mukando Investment
Manager
Thank you