Press release -
Swedfund invests in Solar Saver to expand access to clean and reliable energy in Southern Africa
Swedfund, Sweden's development finance institution, invests USD 10 million in Solar Saver to expand access to affordable and reliable solar power for small and medium-sized businesses in Southern Africa.
The capital will support the scale-up of distributed solar and battery energy systems in South Africa, Namibia, Botswana and Zambia, improving access to stable electricity for small and medium-sized enterprises affected by power shortages and high energy costs.
“Access to dependable and affordable energy is essential for private sector growth, job creation and climate resilience,” says Jonas Kolijn, Senior Investment Manager for Energy & Climate at Swedfund. “Through this investment, we help strengthen energy security and support fossil-free economic growth in one of Africa's key economic regions.”
SolarSaver develops, owns and operates small-scale solar and battery systems that supply power directly to businesses. The company installs and operates systems on client premises, selling electricity through power purchase and rent-to-own contracts that require no upfront investment from the customer. It currently operates more than 700 installations with a combined capacity of circa 140 MW across Southern Africa.
As an active owner, Swedfund will engage through an agreed Environmental and Social Action Plan to strengthen Solar Saver’s environmental and social management systems and to promote responsible business practices across its operations.
The investment is part of a USD 60 million equity round led by Inspired Evolution’s Evolution III Fund alongside FMO, the Dutch development bank.
The investment contributes to reduced greenhouse gas emissions, a more reliable electricity supply and improved competitiveness for small and medium local enterprises.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en
