Sunfunder (Gigaton Empowerment Fund)
Introduction
Mirova SunFunder targets companies that develop and invest in solar energy solutions outside the regular grid, so-called off-grid solutions, primarily in countries in sub-Saharan Africa, Southeast Asia and a smaller share in Latin America.
Swedfund's investment enables loans to companies to increase access to complementary off-grid solutions in countries where the electricity grid is not fully developed or is unreliable. The investment also contributes to sustainable economic development in the regions.
Swedfund qualified the investment in Mirova SunFunder Gigaton for the 2X Challenge in 2023.
Read more in our press release: Swedfund invests in solar energy
Facts
SDG in Focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Energy & Climate
Access to renewable energy is a crucial factor for economic growth and poverty reduction. Today, around 750 million people lack access to electricity, three quarters of whom live in sub-Saharan Africa and the least developed regions of Asia.
Value creation
Our Impact
The investment contributes to increased production and access to electricity, reduced carbon emissions and the implementation of international sustainability standards in the sector. The investment is expected to contribute to women’s economic empowerment by supporting female leaders, workers and entrepreneurs. Furthermore, the investment is expected to contribute to jobs and other income-generating opportunities locally.
ESG
We are working closely with the fund manager to, among other things, develop and implement an environmental and social management system that has the capacity to manage and mitigate environmental and social risks associated with the sector. Other prioritised sustainability issues include developing work on gender equality and women's economic empowerment.
Additionality
Our investment is financially additional as it is made in a difficult context where access to capital is limited, poverty rates are high and the business climate is challenging, and as it is expected to contribute to mobilising capital. The investment is value additional through a strong focus on active value creation during the investment phase, where, for example, the environment, sustainability, women's economic empowerment and human rights are prioritised.