Partnership, a necessity
Goal number 17 states: ”Strenghten the means of implementation and revitalise the global partnership for sustainable development”.
For us at Swedfund, the partnership concept is central. It is through collaboration with the people, communities and businesses in which we invest that we can create decent work and sustainable development. It is through partnership and shared risk with other finance providers that we can make our investments more effective and have a strong influence. It is through close dialogue with civil society that we learn and develop so that we can have even greater influence.
Co-financing and influence
It is through EDFI – the Association for European Development Finance Institutions – that we are best able to carry out effective co-financing. Since 2001, annual financing from the DFIs has grown sharply: from around EUR 10 billion in 2000 to EUR 70 billion in 2014. Total commitments for 2015 amounted to EUR 40 billion for EDFI, EUR 20 billion for OPIC and EUR 80 billion for IFC. Within EDFI, we also harmonise our followup requirements and coordinate our advocacy, and much else. The players in EDFI can jointly – through EDFI or on their own account – participate in projects and investments in collaboration with the various development banks throughout the world.
Within the framework of European cooperation, regular discussions, meetings and dialogues are held. Strategic decisions are taken there in respect of private sector development, sustainability issues and the development of new and existing facilities. The collaboration in EDFI gives us a strong voice and our jointly developed processes provide for effective and strong partnership. As a collective, we are also in a stronger position to set standards for sustainability.
EDFI gives us extra weight
EDFI is the foundation for a number of partnerships. One such is EFP (European Financing Partners) – a collaboration between EDFI and the EIB (European Investment Bank). Another example is ICCF (Interact Climate Change Facility) – a collaboration between EDFI, the EIB and AFD (Agence Française de Développement) aimed at increasing cooperation in relation to climate financing. Through ICCF, a development finance institution that has undertaken a project can treble its financing.
A third example is ElectriFI, a collaboration between the European Commission and EDFI which was launched in 2015. ElectriFI co-finances the development of renewable energy sources and energy efficient projects in developing countries, focusing on rural areas and regions which lack electricity. IFC, the World Bank’s investment arm, is another player with whom Swedfund works closely. One example is the WEDF (Women Entrepreneurs Debt Fund), a fund focusing on financing businesses run by women. The development finance institutions also cooperate directly with the regional development banks in the regions in which they operate.
In our Integrated Report 2016 (page 22 to 24) you can read more on how we work with partnerships in our investment process and in the integration of ESG.