Sida and Swedfund strengthen cooperation on development finance
Introduction
The Swedish International Development Cooperation Agency (Sida) and Swedfund have in recent years built up close cooperation within Strategic Projects in critical infrastructure, and the cooperation is now being extended to new areas.
Sida and Swedfund have different but complementary mandates, expertise and financing instruments.
“Increased use of each organisation’s instruments and increased resource efficiency strengthens the overall Swedish offer while it also fosters new ways of cooperation and new innovative solutions. This agreement improves the coordination in our engagement with local financial institutions, with Swedfund as main point of entry”, says, Maria Hammarskjöld Håkansson, CEO, Swedfund.
As a first step, the agreement covers credit guarantees to local private financial institutions.
Swedfund’s networks, market knowledge and financial expertise will be used to a greater extent to identify and develop financing opportunities where Sida’s guarantees, Swedfund’s investments or a combination of these may be relevant.
“By coming in earlier, better coordination of contacts and combining our strengths, we can create better prerequisites for financing solutions that both mobilise private capital and contributes to long term development effects”, says Hanna Hellquist, Director General, Sida.
In parallel with working on investment opportunities that contribute to Swedfund’s mission objectives, Swedfund will also identify opportunities that can contribute to the implementation of Sida’s strategies.
Each organisation’s mandate over its own instruments remains unchanged. When a financing opportunity moves on to concrete preparation, negotiation, decision and follow-up, each organisation is responsible for its own instrument, based on its assignment and mandate.
Read more about the cooperation agreement