2024 Update:

Innovative collaboration with the private sector is needed to achieve SDG 6. In line with the commitment to catalyze additional private funding in low income countries the Swiss Agency for Development and Cooperation (SDC) invested in 2024, EUR 5 million in the Water Access Acceleration Fund (W2AF). The W2AF is the first “impact first” private equity fund aiming at enhancing access to safe and affordable drinking water by investing in innovative water companies in developing countries primarily in Asia and Sub-Saharan Africa. By providing an exchange rate currency risk absorption mechanism, Switzerland supports investments in least developed countries (LDCs) where the investment gap is the biggest and fosters its role as a provider of innovative finance in support of the SDGs including in frontier markets. This investment complements two other investments in structured funds, all of them with a particular focus on least development countries. 

Commitment:

The SDC Investment Credit will invest 4.9 million CHF of catalytic funds into 1-2 ventures in 2024, as a key instrument of SDC’s strategy to scale up private sector engagement and unlock additional return-seeking capital. The Investment Credit serves as a catalyst for innovation and skill development by encouraging fresh approaches fostered by the private sector. It targets LDCs and neglected sectors, aiming to draw in private capital for achieving the SDGs, thereby supporting sustainable progress and societal benefits. This initiative is a central element of SDC's strategy to increase private sector investment in particular in local SMEs in alignment with the SDGs. Commitment to leveraging private funds and innovative projects ensures impactful results in these focus areas, guided by stringent investment criteria and rigorous impact assessments.