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Investing for Impact in a Volatile Global Environment
In a world increasingly shaped by geopolitical tensions, climate risks, and economic volatility, Swedfund has reaffirmed the value of long-term development finance as a driver of inclusive growth.
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According to its Annual and Sustainability Report 2025, Swedfund’s investments continue to generate strong development outcomes—creating jobs, expanding access to essential services, and strengthening local economies—while maintaining a stable and resilient portfolio.
Strong Capital Deployment and Portfolio Growth
In 2025, Swedfund received SEK 1.8 billion in capital injections and invested approximately SEK 3.7 billion, supported by reflows from its existing portfolio. The institution also successfully mobilised an additional SEK 1 billion in third-party capital alongside its own investments.
By the end of the year, Swedfund’s total portfolio value stood at approximately SEK 14 billion, underscoring its growing role in financing sustainable development across emerging and developing markets.
“Our investments enable companies to grow, create jobs, and increase access to essential goods and services such as electricity, food, and digital connectivity. They also help build sustainable and resilient local businesses,” said Maria Hammarskjöld Håkansson, CEO of Swedfund.
Driving Employment, Energy Access, and Gender Inclusion
Swedfund’s development impact in 2025 was reflected across key social and economic indicators:
- 488,000 people employed by portfolio companies
- 50% of portfolio companies increased their workforce during the year
- 14 terawatt-hours (TWh) of annual energy production across the portfolio
- 58% of investments contributing to women’s economic empowerment
- 36% of investments directed to least developed countries
These outcomes highlight Swedfund’s dual focus on financial sustainability and measurable development impact.
A Proven Model for Sustainable Investment
As global uncertainty intensifies, Swedfund emphasised the importance of experience in complex markets, regional presence, and robust risk management.
“Global uncertainty is increasing rapidly. Our business model shows that sustainable investments with solid returns are achievable—even in challenging environments,” Hammarskjöld Håkansson noted.
Swedfund’s approach centres on private-sector investments, complemented by public-sector feasibility studies through its Project Accelerator, which supports the development of sustainable and critical infrastructure in emerging economies.
Expanding Support for Ukraine’s Economic Resilience
During 2025, Swedfund significantly scaled up its investments and projects in Ukraine, focusing on energy and other critical infrastructure. These efforts are aimed at strengthening economic resilience and laying the groundwork for long-term reconstruction amid ongoing challenges.
Long-Term Commitment to Sustainable Development
As Sweden’s development finance institution, Swedfund remains committed to poverty reduction through responsible investment. Its 2025 results demonstrate how patient capital, strategic partnerships, and sustainability-driven investment can deliver tangible impact—even in an increasingly uncertain global landscape.
