Last year, Denmark announced plans to significantly increase its aid budget.
Alongside this, it announced another change in ODA spending: More of Denmark’s foreign aid will be channeled through the Danish development finance institution, the Investment Fund for Developing Countries, or IFU.
What that means is that Denmark will soon increase the portion of its foreign aid that — instead of going in grant funding to aid organizations — will be lent to private companies to get them to invest in low- and middle-income countries, in commercial ventures expected to contribute to development or climate goals.