Swedfund’s role in development cooperation

Swedfund plays an active role in development cooperation

There is a great need for new investment in emerging markets. These countries see new jobs and an expanding, productive private sector as the most sustainable route to overcoming poverty. Business starts in such countries are often very difficult to finance.

Swedfund serves as a vital bridge between these emerging markets and industrialized countries. Our knowledge of investment conditions and strategies in developing countries facilitates economic growth through the establishment of profitable, productive businesses that contribute to the reduction of poverty.

Economic stimulus is the key to sustainable development

Establishing and expanding businesses in emerging markets promotes sustainable growth by creating jobs, boosting tax revenue and stimulating the demand for means of production and input goods.

Supporting business and industry is also a cost-effective approach to development cooperation. In addition to the concrete, sustainable impact, the risk of corruption and waste is reduced. Swedfund is a committed partner that learns as much as possible about the businesses we invest in, whether as a lender or partner.

These businesses play a number of central roles in developing countries:

• As employers and as engines of economic growth
• As producers of goods and services that improve the standard of living
• As facilitators of technical progress
• As promoters of competition, which leads to lower consumer prices
• As sources of tax revenue that can be used for economic development
• As trailblazers when it comes to management, corporate governance, health and the environment
• Sustainable, concrete development relies on the investment and manufacturing decisions of local contractors, who are best positioned to assess demand

Follow-up and monitoring

Swedfund requires all of its portfolio companies to submit yearly reports concerning their environmental efforts and impact on social conditions. More information is available from Swedfund’s Sustainability Report (see download link to the right), which follows the Global Reporting Initiative (GRI) framework. The report contains information about the sectors and regions Swedfund invests in, the number of employees at Swedfund’s portfolio companies, and descriptions of the concrete ways in which these enterprises contribute to development cooperation.

Every investment decision made by Swedfund is preceded by a review of local economic, environmental and social conditions. For more information about our environmental and social criteria, download the documents to the right.