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A child in Kenya is reading in the light from off-grid solar energy. SunFunder borrower [M-KOPA], Kenya.
A child in Kenya is reading in the light from off-grid solar energy. SunFunder borrower [M-KOPA], Kenya.

Press release -

​Swedfund makes large commitment to the off-grid solar energy sector

Swedfund, the Swedish Development Finance Institution, commits USD 12m to the Solar Energy Transformation Fund managed by SunFunder. The investment will contribute to increased access to electricity, as well as the increased generation of renewable energy for exposed demographics in the least developed countries in the world according to the OECD DAC list. The investment is in line with Swedfund’s Energy & Climate sector goals of investing in the off-grid sector for solar energy, particularly in Sub-Saharan Africa, where more than half of the total population lacks access to electricity.

The investment gives Swedfund the opportunity to support the off-grid sector in sub-Saharan Africa and in Asia, by a debt commitment to the Solar Energy Transformation Fund, managed by Nairobi-based sector specialist SunFunder Inc. Swedfund’s capital will be used to provide loans to corporate borrowers active in the off-grid solar space – primarily in Sub-Saharan Africa. The investment will support increased access to electricity as well as increased generation of renewable energy.

- This investment gives us, as a Development Finance Institution, the possibility to contribute to climate change mitigation and improved standards of living due to access to affordable and reliable electricity. It’s also important for us to provide capital to a fund with an outspoken strategy to invest their way through the COVID-19 pandemic at a point in time where the general interest for investments in developing countries is expected to decrease, says Swedfund’s CEO Maria Håkansson.

Swedfund will also contribute by improving the environmental, social and governance processes of the fund in relation to its borrowers.

SunFunder was founded in 2012 and has since grown from a crowdfunding platform to a manager of structured debt funds, all of which have been aimed at financing the off-grid sector for solar energy, primarily in Sub-Saharan Africa. To date, SunFunder (through its various funding platforms) has provided over $100m in debt financing to more than 50 off-grid solar companies, impacting over 7 million people with improved access to energy and mitigating over 700,000 tons of CO2 equivalent emissions annually.

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About Swedfund

Swedfund is Sweden's development finance institution for sustainable investments in developing countries. In order to achieve the goal: a world without poverty, more jobs are required in the private sector and that access to renewable energy is increasing. Investments are therefore made within energy & climate, health and to reach small and medium-sized companies.

As a state-owned company, Swedfund is managed by the Ministry of Enterprise and Innovation. The operations are financed partly through capital injections for which the Ministry of Foreign Affairs is responsible and through reflows from the own portfolio. Swedfund was founded in 1979 and has since the start made more than 240 investments in more than 60 countries.

www.swedfund.se/en
www.edfi.eu

Contacts

Karin Kronhöffer

Karin Kronhöffer

Press contact Director, Strategy & Communication +46 72 050 31 91
Axel Hallgren

Axel Hallgren

Press contact Press and Communications Manager +46 70 234 49 46