Press release -
Swedfund invests USD 10 million in fund targeting climate and digitalization investments
On the 12th of May Swedfund invested USD 10 million in "E3 Low Carbon Economy Fund I" managed by Nairobi-based E3 Capital, acting as the investment advisor to the fund. The fund targets investments in renewable energy, climate and digitalization in developing countries in sub-Saharan Africa, including Kenya, South Africa, Ghana and Nigeria.
- Our investment provides opportunities for early-stage companies to grow and develop their business in areas such as renewable energy and digitalization. Optimization is important because it creates opportunities for both individuals and companies and has a positive impact on productivity, jobs, and growth, says Gunilla Nilsson, Investment Director Energy & Climate at Swedfund.
The fund will invest in three target areas:
- Renewable energy solutions that are not connected directly to the grid (so-called off-grid energy solutions). Among other things, this includes solar energy for commercial and industrial customers and solar-based products, such as lamps and coolers, for small companies and households;
- Digital products and services, including energy-efficient data centers and wireless internet services; and
- Low-carbon products and services, including electric vehicles and energy efficiency solutions such as smart electricity meters.
The fund will primarily invest smaller amounts (Between USD 500,000 and USD 1 million) in new companies and thus build up a diversified portfolio of companies active in the fund's target areas. The Fund's investments are thus expected to support the renewable energy transition and drive socioeconomic development in sub-Saharan Africa by promoting digitalization and strengthening access to sustainable energy-based products and services while avoiding increased emissions.
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance. We are financed through reflows from the portfolio and capital injections from the development assistance budget. The return from the portfolio finances our operations and we reinvest reflows from our portfolio in new projects, i.e. we recycle our capital injections.
For more information: please visit www.swedfund.se/en| www.edfi.eu
