The state-owned development finance institution Swedfund International AB (Swedfund) has announced an investment of SEK126 million (US$11 million) in the Evolution II fund.

Swedfund's investments are directed towards the development, construction and operation of power plants producing renewable energy, and will also lead to the creation of indirect jobs through improved access to energy. The African Development Bank (AfDB) and European development finance institutions, in addition to Swedfund, are investing in Evolution II. The aim of Evolution II is to reach SEK2 billion (US$189 million) of capital by the end of 2018.

The Evolution II is a 10-year closed-ended fund with a mandate for equity and equity-related investments into two principle investment streams: development and project finance infrastructure-type investments in clean and sustainable energy; and growth equity investments in energy and resource efficiency companies, and the value chains that support them. The Evolution II Fund will invest an estimated US$250 million in various renewable energy and resource-efficiency assets across sub-Saharan Africa.