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Swedfund, Sweden’s development finance institution, is committing €40 million to the Emerging Africa & Asia Infrastructure Fund (EAAIF), a company of the Private Infrastructure Development Group (PIDG), managed by Ninety One. The investment will address infrastructure gaps in Africa, the Levant and South and Southeast Asia by supporting projects that elevate climate action and support inclusive and sustainable development.
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Africa is the most energy-deficient continent, home to 75% of the global population lacking access to electricity. In Asia and the Pacific, over 350 million people have limited electricity access, while 150 million lack it entirely, according to the Asian Development Bank. This deficit extends beyond energy, hindering digital connectivity and limiting access to essential products and services in South Asia and sub-Saharan Africa, the least connected regions in the world.
Swedfund alters risk perceptions on African infrastructure investments
“EAAIF plays a crucial role in financing impactful infrastructure projects in its markets”, said Jérémie Hoffsaes from Swedfund’s Energy & Climate team. Through its contribution to EAAIF, Swedfund also aims to challenge risk perceptions around African infrastructure investments, build confidence and help mobilise private capital. This is essential to close the financing gap and build capital markets to achieve better environmental and social impact.
— EAAIF supports improving access to low-carbon infrastructure and taking action on both mitigation and adaptation to accelerate African and Asian industrialisation and close the energy access gap, whilst supporting the global transition to net zero.
Impact of Swedfund’s commitment
The impact from Swedfund’s commitment will be felt for decades, allowing us to deliver climate-resilient, inclusive infrastructure projects that transform economies and improve lives in Africa and Asia. Moreover, the affect is felt by people and businesses far beyond the original project location. Quality infrastructure enables people and businesses to plan for the future with confidence, says Martijn Proos Co-Head of Emerging Market Alternative Credit, Ninety One.
Since 2001, the EAAIF has provided patient debt capital for a geographically and sectorally diversified portfolio of high impact infrastructure projects in Africa and Asia worth more than US$2.5 billion. This includes US$42m of debt to support the construction and operation of the 46MW Biovea biomass plant in Côte d’Ivoire. This will improve income generation for 12,000 outgrowers, while increasing access to reliable electricity for 743,000 consumers and avoiding 120,000 tCO 2e per year.
Focusing on climate-resilient infrastructure projects
Swedfund’s investment will focus on climate-resilient infrastructure projects that supports adaptation, facilitates net-zero transitions, and enhances digital connectivity. Where appropriate, these projects will receive PIDG’s technical assistance, which focuses on building resilience in underserved communities to enhance positive gender, inclusion, climate and nature outcomes.
Alongside private sector partners like Allianz and Standard Bank, Swedfund further strengthens EAAIF’s capacity to deliver high-impact projects in complex markets.
