Grace Ashiru
Swedfund, Sweden’s development finance institution, is committing more than $41 million (€40 million) to the Emerging Africa & Asia Infrastructure Fund (EAAIF), a venture under the Private Infrastructure Development Group (PIDG) and managed by the investment firm Ninety One.
This investment seeks to address the significant infrastructure challenges across Africa, the Levant, and South and Southeast Asia. The fund will focus on climate action, inclusivity, and fostering sustainable development.
Africa continues to be the most energy-deprived continent, with nearly 75 percent of the global population lacking access to electricity. Asia and the Pacific also face significant energy challenges, with over 150 million people completely without electricity and 350 million having only minimal access. This energy deficit goes beyond just electricity, affecting digital connectivity and limiting access to essential services, especially in South Asia and sub-Saharan Africa.
EAAIF is dedicated to improving access to low-carbon infrastructure while implementing mitigation and adaptation strategies to support the global shift to net zero. Its objective is to foster climate-resilient and inclusive infrastructure projects that contribute to economic transformation.
Since its inception in 2001, EAAIF has provided patient debt capital to a wide range of high-impact infrastructure projects across Africa and Asia, amounting to over $2.5 billion. The fund has supported 96 infrastructure projects across 10 sectors in more than 20 African countries.
In 2023, Swedfund backed E3 Capital and Lion’s Head in the $48 million first close of their E3 Low Carbon Economy Fund for Africa (E3LCEF). Later that year, in October, Swedfund also participated in the equity round of Husk Power’s $103 million Series D funding.
The fund also extended €20 million ($20.816 million) in debt financing for the 46MW Biovea biomass plant in Côte d’Ivoire, which provides electricity to 743,000 consumers and helps reduce carbon emissions by 120,000 tonnes each year.
In July 2024, Swedfund invested $30 million in Access Bank Nigeria plc to support underserved micro, small, and medium enterprises (MSMEs). The investment aims to provide long-term capital and capacity building for unbanked and underbanked businesses in Nigeria.
This latest investment will capitalize on the fund’s partnership with key private sector players such as Allianz and Standard Bank to drive high-impact projects in challenging markets.
“This high-quality infrastructure will empower individuals and businesses to plan for the future with confidence,” concludes Martijn Proos, Co-Head of Emerging Market Alternative Credit at Ninety One.
