Sida backs African private sector development fund

The Swedish International Development Cooperation Agency has committed 130 million Swedish kronor ($18.9 million) to the Africa Enterprise Challenge Fund, a multidonor financing mechanism that seeks to encourage competition and the creation of innovative ideas among private sector companies in Africa.

Sida’s contribution will primarily be for promoting private sector-driven investments in the agriculture sectors of African countries emerging from conflict, including Somalia, Zimbabwe, South Sudan, the Democratic Republic of Congo, Sierra Lone and Liberia. The pledged amount is to be disbursed through 2017.

The contribution marks the first time Sida is supporting a private sector fund to promote agriculture development. AECF is also backed by the United Kingdom, the Netherlands, the Australian Agency for International Development, the Danish International Development Agency and the International Fund for Agricultural Development.

>> UK continues push to spur private sector development in Africa, Asia

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.