“No country has been lifted out of poverty through development assistance alone; rather, what is needed is growth and investment. The Government is now making it easier for Swedish companies to contribute to development in low- and lower and middle-income countries with a new financing model. By making it possible to combine development assistance funding with export credits and export credit guarantees, we’re bringing development assistance closer to trade and thereby supporting countries that want to make a prosperity journey,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

There is an urgent need to implement socially beneficial projects in low- and lower middle-income countries, which can be difficult to implement on commercial grounds. These may include major infrastructure projects, or projects in the transport, health care or telecommunications sectors.

The new ordinance will enter into force on 1 August 2025. The initiative is a five-year pilot project that runs until the end of 2029. The Government previously set aside development assistance funding to be able in 2025 to commit to future payments of up to SEK 1.2 billion during the period 2026–2041 within the framework of this ordinance. Funding applications will be administered by the Swedish Export Credit Agency.