Sweden’s development finance institution Swedfund is investing SEK126mn in the Evolution II Fund, which is focused on clean energy supply and resource efficiency in Sub-Saharan Africa. The investment will be used to develop, build and run power stations producing renewable energy. Other investors include the African Development Bank and several European development finance institutions.
“Access to electricity is a key factor in reducing poverty and also creating jobs, which is why sustainable energy is one of Swedfund’s most important investment sectors,” explained CEO Maria Håkansson. “Development finance institutions’ long-term capital has a significant role to play in the production of renewable electricity, and Evolution II has a strong team specialising in sustainable energy in Sub-Saharan Africa.”
The fund will invest mainly in solar power, wind power and hydropower in countries such as Zambia, Ethiopia, Nigeria and Uganda. In addition to job opportunities during the construction phase and maintenance of the power stations, the investment will also lead to indirect jobs due to improved access to energy.
Some 600mn people in Sub-Saharan Africa do not have access to electricity. The power supply systems that do exist are often outdated and unstable. Several studies also reveal that access to reliable sources of electricity improves conditions for women. Swedfund and other development finance institutions currently account for a third of renewable energy investments in Africa. Other financiers in the Evolution II Fund include the African Development Bank and European development finance institutions. The Fund aims to reach a total of approximately SEK2bn in capital by the end of the year.
Swedfund is working according to the goals set out in the 2030 Agenda, and the investment in the Evolution II Fund will primarily contribute to the following targets:
- 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.
- 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
- 13: Climate action
Swedfund, owned by the Swedish state, provides risk capital, expertise and financial support for investments in local companies in the developing markets of Africa, Asia, Latin America and Eastern Europe. Our mission is poverty reduction through sustainable business, contributing to economic and environmental development as well as a positive impact to society. Swedfund's investment strategy rests on three main pillars: impact on society, sustainability and financial viability. Since 1979 Swedfund has been engaged as an active, responsible and long-term investor in more than 260 companies worldwide.
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