Swedish development finance institution, Swedfund, has announced a significant investment of over $41 million (€40 million) into the Emerging Africa & Asia Infrastructure Fund (EAAIF). This fund operates under the Private Infrastructure Development Group (PIDG) and is managed by Ninety One, a prominent investment management firm. The primary objective of this investment is to address the critical infrastructure gaps that exist across Africa, the Levant, and South and Southeast Asia, with a strong emphasis on climate action, inclusivity, and sustainable development.
Africa continues to face severe energy challenges, with nearly 75% of the global population lacking access to electricity residing on the continent. Similarly, Asia and the Pacific region are not exempt from this issue, as over 150 million people lack any electricity access, while an additional 350 million have only minimal access. This energy deficit extends beyond electricity, impacting digital connectivity and limiting access to essential services, particularly in South Asia and sub-Saharan Africa.
The EAAIF is dedicated to improving access to low-carbon infrastructure while implementing strategies for climate mitigation and adaptation that align with the global transition to net-zero emissions. The fund aims to facilitate climate-resilient and inclusive infrastructure projects that can drive significant economic transformation in the regions it serves. Since its inception in 2001, the EAAIF has successfully deployed patient debt capital to a diverse array of high-impact infrastructure projects across Africa and Asia, amounting to over $2.5 billion. The fund has supported 96 infrastructure projects spanning 10 sectors in more than 20 African countries.
In 2023, Swedfund also played a role in supporting E3 Capital and Lion’s Head’s $48 million first close on their E3 Low Carbon Economy Fund for Africa (E3LCEF). Additionally, in October of the same year, Swedfund participated in the equity round for Husk Power’s $103 million Series D funding. Moreover, the fund provided €20 million (approximately $20.8 million) in debt financing for Côte d’Ivoire’s 46MW Biovea biomass plant, which supplies electricity to 743,000 consumers and contributes to a reduction of carbon emissions by 120,000 tonnes annually.
In July 2024, Swedfund made a $30 million investment in Access Bank Nigeria plc, aimed at supporting underserved micro, small, and medium enterprises (MSMEs) by providing long-term capital and capacity building for unbanked and underbanked businesses in Nigeria. This latest investment will capitalize on the fund’s partnerships with major private sector players, including Allianz and Standard Bank, to deliver impactful projects in complex markets.
This quality infrastructure will help people and businesses plan for the future with confidence.
Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One
