Danish and European private development consulting firms are up in arms over the entrance into the aid market of the German firm GTZ International Services. A fully owned subsidiary of the German state aid agency GTZ, GTZ IS has been pre-qualified for five Danida tenders in the past eight months. The European consultants’ federation (EFCA) says that the increasing activity of such “parastatal consulting organisations” skews competition and is “fundamentally unfair”.
Swedfund is a small development financing institution with the ambition of becoming the largest Nordic risk capital fund. 2005 was a record year for Swedfund in terms investments. If the fund continues its activity at the current high level it will run into a liquidity crisis - unless its owner, the Swedish government, injects more capital.
In 2002, Finnfund reoriented its focus to developing countries and especially to low and lower middle income countries. Finnfund wants to do more in Africa and with medium-sized companies. Finnfund also targets co-financing with other DFIs where there is no Finnish company involvement.
In an interview with Development Today, the chiefs of Swedfund and Finnfund claim their funds are today basically untied. But they also make the case for maintaining a focus on their national and Nordic base of companies.