About Swedfund
Introduction
Swedfund is Sweden’s development finance institution with the mission of reducing poverty through sustainable investments in developing countries. With the 2030 Agenda and the UN Sustainable Development Goals as our starting point, our focus is on delivering development impact and financial results in some of the most vulnerable, while often at the same time promising regions.
Swedfund has two tools that we employ to deliver on our mission. We make investments in the private sector and fund feasibility studies in the public sector through the Project Accelerator. Both are mutually reinforcing processes that enable us to work holistically for sustainable development in developing countries
Swedfund invests to contribute to jobs with decent working conditions and increased access to essential products and services such as electricity, food and digital connectivity. Our investments aim to strengthen local economies, promote gender equality, and foster innovation while enabling more companies to meet international standards. Swedfund also invests in climate mitigation, adaptation and resilience to support a green transition in developing countries.
Swedfund prioritises investments in Africa, South and Southeast Asia and Ukraine. Our local presence in these regions is an important resource in understanding local context and market conditions and play a vital role in sourcing of new investments and in value creation.
Through technical feasibility studies and capacity-building initiatives in the public sector, we lay the foundation for more sustainable and investable infrastructure projects in developing countries. A well-developed infrastructure is central to poverty reduction, economic development and inclusive growth, where Swedish companies can be part of the solution.
Source of funding
Swedfund was established in 1979 and is a state-owned company managed by the Swedish Ministry of Finance. Our operations are financed by reflows from the portfolio and through capital injections from the development cooperation budget, for which the Swedish Ministry for Foreign Affairs is responsible.
Goals and mission objectives
Swedfund has a public policy assignment with specific mission objectives focused on sustainable value creation and the 2030 Agenda. Our public policy assignment is based on the UN Sustainable Development Goals, focusing on reducing inequality, decent work, climate, women's economic empowerment and capital mobilisation. We apply a digital lens to all investments to advance connectivity and technology that enables sustainable development.
We also comply with several policies, guidelines, regulatory frameworks, undertakings and international principles. Find out more: Guidelines and policies
Additional and catalytic
Swedfund’s mission is to act additionally and catalytically by attracting private capital for investments. This means enabling investments that would otherwise not take place.
Swedfund assesses additionality according to the OECD Development Assistance Committee’s definition which includes financial, value and development additionality. Within value additionality we assess an investment’s sustainability and societal impact. The definition of financial additionality includes contributing to capital mobilisation.
We are additional by:
- investing in the private sector, mobilising capital and building capacity to promote development and growth.
- carrying out feasibility studies and capacity-building initiatives via the Project Accelerator for sustainable development of public infrastructure, where Swedish companies can be part of the solution.
Risk
As a development finance institution, taking risk is a pivotal part of our mission and business. We are catalytic by taking risks and showcasing opportunities. Our ambition is to act as a bridge to private capital and contribute to mobilise private capital to developing countries through investments and feasibility studies that lay the foundation for more investable infrastructure projects.
Making sustainable investments that generate both impact and financial returns has an important demonstration effect and facilitates the mobilisation of institutional capital.
Swedfund's risk management method aims to achieve risk optimisation based on our mission goals and business model, rather than risk minimisation. We constantly adapt our approach based on contextual, sector, and operational insights from our work and local presence in Africa, Asia, and Ukraine.