Anna Älgevik, Manager at Swedfund's Project Accelerator, tells us about the Project Accelerator's work with sustainable infrastructure projects in developing countries.
Large-scale investments in infrastructure are a prerequisite for sustainable development, economic growth and poverty reduction in developing countries. Investments in energy, water and sanitation systems, healthcare and sustainable transport systems are examples of infrastructure that play a crucial role in meeting immediate needs of populations and the Global Goals.
At the same time, developing countries often lack the financial resources and the capacity required to develop and implement necessary investments. In procurement processes, sustainability aspects are often deprioritised, leading countries to build themselves into unsustainable systems. Therefore, there is a great need for project preparation initiatives that can help to identify and develop prioritised and financially viable projects that also meet investors’ social and environmental requirements and in which Swedish companies can be part of the solution.
The Project Accelerator aims to analyse the risks and opportunities associated with a specific project, demonstrate financial, social and environmental viability, and to help stakeholders make well-informed decisions. The Project Accelerator also provides technical support through external advisors to strengthen the project owner’s ability to procure and implement studies in a structured manner in accordance with international standards. Overall, this helps unlock opportunities for external funding for the project’s implementation through a development bank or a Swedish export credit, for example. It also allows Swedish companies that offer sustainable solutions to participate in a competitive procurement process.
Since its inception in 2016, the Project Accelerator has initiated more than 70 projects. Global crises are likely to increase needs. Increased funding during the year has enabled the initiation of more projects, including projects in Ukraine.
23
Number of interventions initiated in 2023
The Project Accelerator works with different actors within Team Sweden, with the Embassies being particularly important. They are represented in our partner countries and help identify relevant needs and support during implementation, as
discussions often take place with local ministries and authorities.
Other actors within Team Sweden (Business Sweden, SEK, EKN and Sida, amongst others) are also important partners, as well as Swedish companies that can offer sustainable solutions. These collaborations allow for collective project expertise and discussions with financiers at an early stage.
By contributing to the development of more sustainable projects, the Project Accelerator strengthens conditions for increased production capacity locally, trade and, ultimately, favourable economic development where the private sector can contribute to sustainable growth.
The Project Accelerator is also an important tool for Swedfund’s investments by laying the foundation for more sustainable projects that can be financed and implemented in our countries. For example, the Project Accelerator can support investments in the Energy & Climate sector by strengthening the capacity of the electricity grid.
This creates the conditions for renewable energy generated by Swedfund’s investments to be used more efficiently, and for local actors’ capacity development to contribute positively to Swedfund’s investments.The Project Accelerator thereby serves as an important bridge between development cooperation, trade and investment, and, by extension, more inclusive growth.
