Swedfund, the Swedish Development Finance Institution has invested $12 million in the Solar Energy Transformation Fund managed by SunFunder.
The funds are intended to finance solar photovoltaic (off-grid) energy suppliers in sub-Saharan Africa.
In a statement obtained by The Energy Intelligence, Swedfund says the investment is in line with its Energy & Climate sector goals of investing in the off-grid sector for solar energy, particularly in Sub-Saharan Africa, where more than half of the total population lacks access to electricity.
“The investment gives Swedfund the opportunity to support the off-grid sector in sub-Saharan Africa and in Asia, by a debt commitment to the Solar Energy Transformation Fund, managed by Nairobi-based sector specialist SunFunder Inc.
Swedfund’s capital will be used to provide loans to corporate borrowers active in the off-grid solar space – primarily in Sub-Saharan Africa.
The investment will support increased access to electricity as well as increased generation of renewable energy”, the statement read.
According to the financial institution, solar investment fund manager SunFunder has already provided more than $100 million in debt financing to over 50 off-grid solar companies.
These investments have improved access to energy for more than 7 million people and reduced emissions by more than 700,000 tonnes of CO2 per year.
Recall that in February 2020, Daystar Power received $4 million from SunFunder to supply 3 MWp of electricity to Nigerian companies.