Sweden

Two key agencies are responsible for looking after Sweden’s official development assistance. The Ministry for Foreign Affairs manages 50% of the country’s development aid, while the Swedish International Development Cooperation Agency (Sida) administers the other half.

Sida’s engagement in the region is guided by the Strategy for Sweden’s Regional Development Cooperation with Asia and the Pacific Region in 2022–2026. Sweden’s work with ADB covers the themes of democracy and human rights, conflict prevention and support for migration, gender equality, regional cooperation and integration, climate and the environment, and inclusive growth. In 2016, ADB and Sida entered into a risk transfer arrangement where Sida guarantees a repayment of the principal of ADB’s sovereign portfolio of ongoing loans to support priority areas in ADB’s operations. It is expected to increase ADB’s lending capacity by about $50 million per year from 2016 to 2026 for about $500 million.

Sweden, through Sida, provided a $200 million guarantee commitment to the International Finance Facility for Education (IFFEd). IFFEd is a nonprofit foundation and a new financing engine for global education. It collaborates with governments, nongovernment, and philanthropic partners to scale up more affordable financing for quality education and skills development in lower middle–income countries. The establishment of the IFFEd Financing Partnership Facility was approved by ADB in April 2023. IFFEd is expected to help ADB expand its education sector operations to help reach its target for the sector.

The Swedish Energy Agency also works with ADB through cofinancing. It is Sweden’s largest public funder and facilitator of Swedish “sustaintech” companies. It is responsible for the country’s program for International Climate Initiatives, which aims to reduce greenhouse gas emissions globally through international cooperation.

Highlights of ADB–Sweden Engagement in 2023:

Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported 14 transactions valued at $77.7 million with banks domiciled in Sweden from inception to December 2023. During the same period, the TSCFP supported 69 Swedish exports and/or imports valued at $112 million. Exports and/or imports were mainly to or from Sri Lanka, Viet Nam, and Bangladesh. Underlying goods involved mostly medical and pharmaceuticals, raw and non-energy commodities, as well as food and agriculture-related goods.

Trust Funds. In November 2023, Sweden committed SKr15 million ($1.4 million) as a contribution to the Clean Energy Fund. The fund aims to improve energy security in developing member countries and decrease the rate of climate change through increased use of clean energy.

In December 2023, the agreement for the Swedish Energy Agency’s contribution of SKr300 million ($28.7 million) to the Climate Action Catalyst Fund (CACF) was signed. The CACF will provide carbon finance to support mitigation actions in the region while enabling the financing partners to benefit from long-term transactions for purchasing post-2020 mitigation outcomes.

Special Funds. Sweden is a founding member of ADB and has, since 1966, committed $535.7 million to ADB special funds. Of this commitment, $507.5 million has gone to the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve quality of life.

Knowledge. In November 2023, ADB hosted the financing donors for the annual consultation meetings of the Clean Energy, Urban, and Water Financing Partnership Facilities (FPFs) in India. ADB thanked the donors, including Sweden, while highlighting the FPFs’ role in developing innovative solutions. Donors expressed their support for the FPFs, underscoring the importance of scaling up knowledge and innovation, ensuring greater visibility for donor contributions, and diversifying the funding base for the FPFs.