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    HomeUpdatesSwedfund Backs African Infrastructure Fund in $41.6M Deal

    Swedfund Backs African Infrastructure Fund in $41.6M Deal

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    Swedfund, the Swedish development finance institution, is investing €40 million in the Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One. The investment aims to address critical infrastructure gaps in Africa, the Levant, and South and Southeast Asia, focusing on projects that promote climate action and sustainable development.

    The fund’s focus comes as a significant portion of the population in these regions lacks access to basic infrastructure. Africa, considered the most energy-deficient continent, is home to 75 per cent of the world’s population without electricity access. In Asia and the Pacific, the Asian Development Bank estimates that over 350 million people have limited electricity access, with 150 million lacking it entirely. This infrastructure deficit extends to digital connectivity, hindering access to essential services in South Asia and sub-Saharan Africa, some of the world’s least connected regions.

    “EAAIF plays a crucial role in financing impactful infrastructure projects in its markets,” said Jérémie Hoffsaes from Swedfund’s Energy & Climate team. He added that Swedfund’s investment aims to reduce perceived risks associated with African infrastructure investments, build investor confidence, and mobilize further private capital. This, he explained, is crucial for bridging the financing gap and developing capital markets to achieve greater environmental and social impact.

    Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One, emphasized the fund’s commitment to low-carbon infrastructure, mitigation, and adaptation strategies. “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,” he said. He also highlighted the wider impact of such projects, noting that quality infrastructure enables individuals and businesses to plan for the future.

    Since its inception in 2001, EAAIF has provided over US$2.5 billion in patient debt capital for a diverse portfolio of infrastructure projects across Africa and Asia. One example is a US$42 million debt investment in the 46MW Biovea biomass plant in Côte d’Ivoire. This project is expected to boost income for 12,000 outgrowers, improve electricity access for 743,000 consumers, and reduce CO2 emissions by 120,000 tonnes annually.

    Swedfund’s investment will prioritize climate-resilient infrastructure, supporting adaptation, net-zero transitions, and enhanced digital connectivity. These projects will benefit from PIDG’s technical assistance, focused on building resilience in underserved communities and improving gender equality, inclusion, climate, and nature outcomes. Swedfund’s involvement, alongside private sector partners like Allianz and Standard Bank, is expected to strengthen EAAIF’s capacity to deliver impactful projects in challenging markets.

    EAAIF is a blended finance vehicle that uses public and private debt capital for infrastructure projects in Africa, the Levant, and South and Southeast Asia. It provides debt products on commercial terms to projects primarily owned and operated by private sector experts. The fund aims to stimulate economic stability, business confidence, job creation, and poverty reduction through infrastructure development. To date, it has supported 96 projects across 10 sectors in over 20 African countries. EAAIF’s current loan portfolio stands at US$1.35 billion, invested in 20 countries and across 10 sectors. It is part of the PIDG and receives funding from the governments of the UK, the Netherlands, Switzerland, and Sweden, as well as public and private financiers.

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