How we operate
Our work is based on our Theory of Change. This means that we carry out an analysis of how a potential investment can contribute to change and what direct and indirect development effects we can help to create. We contractually bind the changes we want to achieve and consider possible, and provide expertise and technical assistance as and when necessary in order to support a development in the right direction. Our business model is based on three pillars: impact on society, sustainability and financial viability. We follow up and report a number of indicators linked to each pillar, and our overall results describe the impact and development effects we have generated.
We are also involved in capacity-enhancing initiatives and feasibility studies through the Swedfund Project Accelerator. This takes place at an early stage in the investment cycle and helps to ensure that more sustainable projects are developed and implemented in developing countries. The projects pave the way for more sustainable investments and increased trade between countries.
Our method contributes to sustainable development
Swedfund has the same goals as Swedish development cooperation, but uses different tools in order to achieve them. We invest in equity, provide loans and use funds to reach more people. Our investments help to create more jobs with decent working conditions and improve access to essential products and services in the world’s most vulnerable countries.
Impact on society
Swedfund’s investments shall have an impact on society in developing countries. We measure performance using the following indicators:
- Jobs
- Gender equality and women’s economic empowerment
- Climate impact
- Tax revenues
Sustainability
Swedfund’s investments are aimed at helping to create sustainable businesses in developing countries. We measure performance using the following indicators:
- Decent working conditions
- Environment and social management system, including human rights.
- Anti-corruption management system
Financial viability
Swedfund aims to help create profitable and financially viable companies in developing countries. We measure performance using the following indicators:
- Turnover and profitability
- Return on funds
- Capital mobilisation
Impact on society
Swedfund aims to contribute to impact on society in the world’s least developed countries. We measure our work through indicators linked to:
- Jobs
- Gender equality and women’s economic empowerment
- Climate impact
- Tax revenues
Sustainability
Swedfund aims to help create sustainable businesses in the world’s least developed countries. We measure our work through indicators linked to:
- Decent working conditions
- Environment and social management system, including human rights.
- Anti-corruption management system
Financial viability
Swedfund aims to help create profitable and financially viable businesses in the world’s least developed countries. We measure our work through indicators linked to:
- Turnover and profitability
- Return on funds
- Capital mobilisation
Our focus
Swedfund has the same goals as Swedish development cooperation, but uses different tools. We invest in equity, provide loans and use funds to reach more people. Our investments help to create jobs with decent working conditions and improve access to essential products and services in the world’s most vulnerable countries.
According to our Owners Instructions, Swedfund’s remit is to operate in the least developed countries, where there is the greatest opportunity to make a difference. We have therefore opted to have a geographical focus on sub-Saharan Africa and the most vulnerable countries in Asia and Eastern Europe. 65 percent of Swedfund’s investments take place in sub-Saharan Africa.
We invest in three sectors which we consider to be particularly important for achieving our goal, to contribute to poverty reduction: Energy & Climate, Financial Inclusion and Health. Climate, gender equality and women’s economic empowerment, and digitalisation are three thematic areas that permeate everything we do, regardless of the chosen instrument, geography or sector.
Through Swedfund’s Project Accelerator, we are alsoable to contribute to the development and implementation of sustainable projects in renewable energy and green infrastructure, with the aim of achieving the goals of Agenda 2030.
Swedfund has the same goals as Swedish development cooperation, but uses different tools. We invest in equity, provide loans and use funds to reach more people. Our investments help to create jobs with decent working conditions and improve access to essential products and services in the world’s most vulnerable countries.
According to our Owners Instructions, Swedfund’s remit is to operate in the least developed countries, where there is the greatest opportunity to make a difference. We have therefore opted to have a geographical focus on sub-Saharan Africa and the most vulnerable countries in Asia and Eastern Europe. 65 percent of Swedfund’s investments take place in sub-Saharan Africa.
We invest in three sectors which we consider to be particularly important for achieving our goal, to contribute to poverty reduction: Energy & Climate, Financial Inclusion and Health. Climate, gender equality and women’s economic empowerment, and digitalisation are three thematic areas that permeate everything we do, regardless of the chosen instrument, geography or sector.
Through Swedfund’s Project Accelerator, we are alsoable to contribute to the development and implementation of sustainable projects in renewable energy and green infrastructure, with the aim of achieving the goals of Agenda 2030.
Proportion of investments that reports growth in revenue and profit
63%
Volume of mobilised private capital in relation to contracted value
20%
Capital injection during the year, SEK
1.2bn
Our additionally
According to Swedfund’s Owner Instructions, our investments must be additional in accordance with the OECD Development Assistance Committee’s definition of additionality. This means that we enable investments that would otherwise not take place. Swedfund assesses additionality from three perspectives: financially, in terms of sustainability and from the impact on society that an investment generates. That we add something in all three dimensions is a prerequisite for us to go ahead with a new investment. In addition to capital, it may be a question of providing skills to help businesses develop in the right direction. We often use funds for Technical Assistance (TA) for quality-enhancing initiatives amongst portfolio companies and to increase the overall development effects that the business generates.
Our risks
Taking risk is a pivotal part of our mission and business. By taking risks and showing the opportunities, we are catalytic. Our ambition is to act as a bridge to private capital and boost private investment indeveloping countries. The work relating to risk management aims to achieve risk optimisation based on mission objectives and a business model, rather than risk minimisation in every regard.
According to Swedfund’s Owner Instructions, our investments must be additional in accordance with the OECD Development Assistance Committee’s definition of additionality. This means that we enable investments that would otherwise not take place. Swedfund assesses additionality from three perspectives: financially, in terms of sustainability and from the impact on society that an investment generates. That we add something in all three dimensions is a prerequisite for us to go ahead with a new investment. In addition to capital, it may be a question of providing skills to help businesses develop in the right direction. We often use funds for Technical Assistance (TA) for quality-enhancing initiatives amongst portfolio companies and to increase the overall development effects that the business generates.
Our risks
Taking risk is a pivotal part of our mission and business. By taking risks and showing the opportunities, we are catalytic. Our ambition is to act as a bridge to private capital and boost private investment indeveloping countries. The work relating to risk management aims to achieve risk optimisation based on mission objectives and a business model, rather than risk minimisation in every regard.
