About €40 million has been committed by Sweden’s development finance institution, Swedfund, to address infrastructure gaps in Africa, the Levant and South and Southeast Asia.
The money will be disbursed through the Emerging Africa & Asia Infrastructure Fund (EAAIF), a company of the Private Infrastructure Development Group (PIDG), managed by Ninety One, a statement from Swedfund said.
Swedfund’s investment will focus on climate-resilient infrastructure projects that support 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.
Swedfund said it 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.
Africa is the most energy-deficient continent, home to 75 per cent 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.
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.
“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,” the Co-Head of Emerging Market Alternative Credit for Ninety One, Martijn Proos stated.
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 $2.5 billion.
