Press release -
Swedish investment to support financial inclusion
Micro, small and medium-sized companies (MSME’s) create 4 out of 5 jobs in emerging economies. Yet, in developing countries, around 200 million MSME’s lack access to finance, especially companies owned by women. Today Swedfund announces an investment up to 15 MUSD in Accion Digital Transformation Fund, focusing on the digital transformation of financial institutions in developing countries.
An estimated 1.7 billion adults worldwide lack a basic account with a financial service provider and most of them are in developing countries. At the same time, two thirds of the unbanked adults have a mobile phone. Hence, digitalization can play an important role in making financial products and services more accessible and adapted to the needs of the target population. Also, digital solutions facilitate further improvement of responsible lending and collection practices, as well as more efficient business models.
- Cost, distance, and lack of documentation are some of the main reasons for not having a bank account in developing countries. Digitalisation is a tool to increase outreach and create impact. Accion is also an impact investor with significant experience from working with other DFIs, says Jane Niedra, Head of Financial Inclusion at Swedfund.
Accion have a long history of supporting both micro-entrepreneurs and unbanked individuals by supporting the digital transformation through capital, strategic and technical advice and governance support. Supporting the un- and underbanked segments of the population is a core theme for development finance institutions such as Swedfund.
The fund meets 2X Challenge criteria with 20% females in senior management.
About Accion
Accion is a global nonprofit organization and has a long history within microfinance and fintech impact investing. Accion works to facilitate financial inclusion in the world and targets the three billion people who are left out of — or poorly served by — the traditional financial sector. For 60 years, Accion has helped tens of millions of people through their work with more than 170 partners in 55 countries.
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About Swedfund
Swedfund is Sweden's development finance institution with the mission to contribute to poverty reduction through sustainable investments in developing countries. Our investments in the private sector contribute to a growing number of jobs offering decent working conditions and increases access to essential products and services like electricity and healthcare. Climate and gender are themes that permeates our investment process.
Swedfund invests in energy & climate, financial inclusion and increased access to capital for micro, small and medium-sized companies as well as healthcare and digitalization.
We are part of Swedish development corporation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Enterprise and Innovation. We are financed through reflows from the portfolio and capital injections from the development assistance budget. The return from the portfolio finances our operations and we reinvest reflows from our portfolio in new projects, i.e. we recycle our capital injections.
For more information: please visit www.swedfund.se/en| www.edfi.eu
