Sweden’s development finance institution Swedfund has invested SEK 126m in the Evolution II Fund, which is focused on clean energy supply and resource efficiency in Sub-Saharan Africa. 

The investment will be used to develop, build and run power stations producing renewable energy. 

“Access to electricity is a key factor in reducing poverty and also creating jobs, which is why sustainable energy is one of Swedfund’s most important investment sectors,” explained CEO Maria Håkansson. 

“Development finance institutions’ long-term capital has a significant role to play in the production of renewable electricity, and Evolution II has a strong team specialising in sustainable energy in Sub-Saharan Africa.”

The fund will invest mainly in solar power, wind power and hydropower in countries such as Zambia, Ethiopia, Nigeria and Uganda. 

In addition to job opportunities during the construction phase and maintenance of the power stations, the investment will also lead to indirect jobs due to improved access to energy.

Some 600 million people in Sub-Saharan Africa do not have access to electricity. 

The power supply systems that do exist are often outdated and unstable. 

Several studies also reveal that access to reliable sources of electricity improves conditions for women. 

Swedfund and other development finance institutions currently account for a third of renewable energy investments in Africa. 

Other financiers in the Evolution II Fund include the African Development Bank and European development finance institutions. 

The Fund aims to reach a total of approximately SEK 2bn in capital by the end of the year.