Scandinavian DFIs flood African markets

Norway and Sweden have recently shown their support for Africa by investing in various sectors via their respective development finance institutions. On 2nd February, Norway’s development finance institution, Norfund, made an investment of ZAR 80 million (USD 4.7 million) in South African food company Synercore Holdings.

The investment will be used to fund company development and create skilled jobs, while reducing the company’s dependence on imports. The investment will also see Synercore acquire two other companies, Impilo and Sizwe, which will expand their capacity and improve their supply chain sustainability.

On the other hand, Sweden’s development finance institution, Swedfund, completed a USD 26 million investment in African Infrastructure Investment Fund 4 (AIIF4) on 3rd February.

The fund, managed by Africa Infrastructure Investment Managers, focuses on various sectors such as renewable energy, technology, and infrastructure, to support job creation and energy transition away from fossil fuels. The investment marks Swedfund’s first foray outside of the pure renewable energy and climate-related infrastructure sector, into the wider infrastructure context.

These investments by Norway and Sweden show their commitment to improving infrastructure, energy transition, and food security in Africa. These investments are expected to create jobs, enhance commercial competitiveness and contribute to the transition to a greener economy in the continent.