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Danish investments in South Africa


South Africa - An Attractive Investment Destination

South Africa is the largest recipient of Danish investments in Africa and remains an attractive destination for investors seeking diversification and higher returns. With a relatively diversified economy and abundant natural resources, the country offers a promising environment for the transition to sustainable, green energy initiatives. Investments in infrastructure not only drive economic growth but also create jobs, fostering overall prosperity.

However, South Africa faces significant investment needs, compounded by an underperforming economy since the 2008 financial crisis. This has resulted in deteriorating infrastructure, frequent load-shedding, polluted water sources, high unemployment, and other socio-economic challenges. To address these issues, South Africa must triple its current investment levels.

The South Africa National Development Plan 2050 aims to raise the investment ratio to 30% of GDP, with a particular focus on the energy, logistics, and water and sanitation sectors. Achieving this goal will require increasing annual investments from R800 billion to over R2,000 billion. To create a more investment-friendly environment, the government has introduced reforms following decades of neglect and adverse economic and social policies. However, given the high levels of government debt, private sector and international funding will be essential.

Danish private companies play a vital role in South Africa’s development. Notable investors include Copenhagen Infrastructure Finance (CIP), Mulilo Energy, and A.P. Moller Capital, which are active in the energy and logistics sectors. Additionally, companies such as Novo Nordisk, DSV, Kamstrup, Haldor Topsoe, Maersk, Lundbeck, ALK-Abelló, GN Resound, Coloplast, Danfoss, Grundfos, and AVK Vaults have expanded their operations in South Africa.

Danish public finance institutions also significantly contribute to South Africa’s development. Since 1994, the Investment Fund for Developing Countries (IFU) has participated in over 40 projects across various sectors. IFU provides equity and blended finance, including loans and guarantees, and in 2023, committed USD 75 million to South Africa’s Just Energy Transition Partnership (JETP).

The Danish aid agency, DANIDA Sustainable Infrastructure Finance (DSIF), focuses on the public water and energy sectors, supporting public infrastructure projects. In 2023, DSIF pledged USD 67 million to JETP, providing grants for technical assistance and concessional loans.

The export and Investment Fund of Denmark (EIFO), Denmark’s export credit agency and a leading global wind park financier, offers guarantees and loans for projects involving Danish technologies. In addition to traditional export financing, EIFO provides solutions to cover political, technical, and contractual risks.

The Investment Programme is collaborating with Danish financiers, Development Bank of Southern Africa (DBSA), International Development Agencies, and other partners to provide attractive finance solutions to South African infrastructure projects, including projects related to other SSC programmes.

Click here to access a one-pager on investments in South Africa

Contact and further information

For further information on Danish investments in South Africa, please contact the Embassy of Denmark in Pretoria: