Africa absorbed the vast majority of new investments made by Swedfund, Sweden’s development finance institution (DFI), in 2024, highlighting the continent’s critical need for development capital amid a backdrop of heightened global instability. According to the organisation’s newly released Integrated Annual and Sustainability Report, 13 out of 15 investments, representing $229 million of a total $249 million, were directed towards African nations.

The significant allocation to Africa comes at a time when the global landscape is marked by wars, conflicts, and macroeconomic headwinds, factors that have amplified the urgency for development finance. Swedfund, tasked with reducing poverty through sustainable investments in developing countries, channelled a total of SEK 2.7 billion ($270 million) into various sectors last year, while also reporting a positive financial result with an operating profit of SEK 376 million ($37.6 million).

While Africa took centre stage in terms of the number of new projects, Swedfund also prioritised Ukraine in 2024, committing to 25 new initiatives focused on critical infrastructure. This commitment followed an additional allocation of SEK 300 million ($30 million) from the Swedish government for investments in the war-torn nation, and the subsequent decision to open an office in Kyiv.

Notable African investments in 2024 included a $5 million loan to Apollo Agriculture, an agri-fintech company operating in Kenya and Zambia, aimed at bolstering food security for smallholder farmers. In the energy sector, Swedfund made a $22 million equity investment in Sturdee Energy, an independent power producer in South Africa, Botswana, and Namibia, to accelerate the transition to renewable energy.

Source: Launchbaseafrica