Swedfund International

Swedfund International AB is Sweden's state-owned Development Finance Institution (DFI), established in 1987. Its core mandate is to contribute to poverty reduction through sustainable business development in developing countries. Swedfund operates by making responsible investments that are designed to generate both financial returns and significant development impact, aligning its activities with global sustainable development goals.

Swedfund employs a dual investment strategy, engaging in both direct equity and loan investments in companies, and commitments to private equity funds. Geographically, its primary focus is on emerging markets across Africa, Asia, and Eastern Europe. Key sectors of interest include renewable energy, financial institutions, manufacturing, and services, all chosen for their potential to foster economic growth, create employment, and contribute to local economies.

A cornerstone of Swedfund's approach is its rigorous emphasis on environmental, social, and governance (ESG) criteria, as well as additionality. It aims to invest in businesses that would otherwise struggle to access capital, thereby providing crucial support for their growth and development impact. For instance, in 2022, Swedfund's portfolio companies were reported to have created or maintained approximately 279,000 jobs, underscoring its tangible contribution to employment in developing regions.

As a state-owned entity, Swedfund takes a long-term perspective on its investments, often acting as a patient capital provider. It typically invests between SEK 20 million (approximately $1.85 million) and SEK 150 million (approximately $13.9 million) in direct equity and loans. Beyond mere financing, Swedfund actively engages with its portfolio companies to enhance their sustainability performance and maximize their positive development impact, seeking to de-risk investments in challenging markets and attract further private capital.