January 3, 2024

Growthfund repositions its dynamic presence in the public sphere

Article by Gregory D. Dimitriadis in “K”

Growthfund embarks on a new creative era following the recent Growthfund Summit, marking an official end to the period of devaluation and scepticism since its inception. This evolution heralds a new cycle of high ambitions for Growthfund and is a direct result of the recognition it has received for its systematic efforts since 2021, especially in reforming public enterprises. The fund’s impact is evident in the financial returns and the enhanced quality of services provided by the State-Owned Enterprises. Notably, dividends have reached an all-time high of €75 million, with turnover rebounding to pre-COVID levels (€1.06 billion), and dividends are expected to rise to €131 million in 2023.

The fund is smoothly implementing developmental programs set out in its strategic plan for the three- year period up to 2024. These programs, focusing on key objectives like regional development, renewable energy sources, and projects enhancing Greece’s role in Southeast Europe, are progressing well. Consequently, Growthfund’s credibility as a responsible partner is recognized internationally by major investors and the sovereign wealth fund community, increasingly contributing to the country’s economic development.

Additionally, Growthfund is leading the way in green transition, aligning with one of Greece’s and the European Union’s major strategic goals.

The significance of the fund’s contributions, as well as its future prospects as the National Fund of Greece, were recognized by the Minister of National Economy and Finance, Kostis Hatzidakis, at our 1 st Summit, stressing that “Growthfund is transforming, evolving into an entity envisioned by a significant portion of Greek society, increasingly contributing to the development of the economy.” Minister of State, Akis Skertsos also commended Growthfund’s role in enhancing public value.

With their statements, both ministers underscored the State’s dedication to re-envisioning Growthfund as a developmental entity, a necessity for any country seeking normalcy, especially in the aftermath of the challenges spawned from the memorandum era and financial crisis. In the near future, we intend to update the political parties on the beneficial outcomes and future possibilities that arise from fundamentally re-establishing Growthfund, particularly through the operation of an Investment Fund.

For ethical and neutrality reasons, Growthfund strictly avoids political references, a principle that also binds me and all company executives in public statements. However, the need to change the public perception of Growthfund was a vital exception to this rule.

Drawing on the experience of similar entities in other countries (Sovereign Wealth Funds), Growthfund aims to significantly leverage public assets to foster national development and prosperity. This was the motivation behind the strategic focus set in 2021, a shift from the previous tradition. By actively engaging as a shareholder and emphasizing external communication, we facilitated the transition to our envisioned role as a National Investment Fund.

We are now gearing up for the third phase of our operation, confident in the continued success of our endeavors.

Operating with consistent transparency, accountability, and the ethical commitments that define sovereign wealth funds globally, Growthfund will perform its enhanced role with the utmost sense of responsibility in the new optimistic climate shaped by Greece’s recent attainment of investment grade status. This approach, consistent with our past actions, is driven by the conviction that Growthfund will meet heightened expectations to act as a key instrument in attracting foreign investments, complementing the broader investment strategy of the country.

Our commitment to reforming and modernizing State-Owned Enterprises remains steadfast, as this is the only path to securing our achievements. This effort has been positively acknowledged by the European Commission in its recent report, highlighting our success in resource savings and overall governance within our group of subsidiaries.

Gregory D. Dimitriadis is the CEO of Growthfund.