Switzerland supports sustainable infrastructure in developing countries with USD 75 million

Bern, 26.10.2022 - Switzerland supports the Private Infrastructure Development Group (PIDG) with USD 75 million. This decision was taken by the Federal Council on 26 October. PIDG mobilises private sector capital for the construction of sustainable basic infrastructure in sub-Saharan Africa and South and Southeast Asia.

The UN estimates that over USD 2.5 trillion are needed annually to achieve the 17 Sustainable Development Goals (SDGs) by 2030. Public funds alone cannot meet these needs. However, they can be used to mobilise additional funds from the private sector that would otherwise not flow into developing countries.

The aim of PIDG is to improve the living conditions of people in sub-Saharan Africa and South and Southeast Asia through sustainable basic infrastructure, thus contributing to economic development and poverty reduction. PIDG uses public funds to reduce the risk of infrastructure projects so that the private sector can co-invest. Switzerland has been supporting PIDG since its inception in 2002. PIDG is overseen on the Swiss side by the State Secretariat for Economic Affairs (SECO).

The commitment to PIDG is in line with SDG number 17, which calls for partnerships to mobilise finance and investment from multiple parties to fight poverty in developing countries. PIDG contributes directly to the goals of clean water (SDG 6) and clean energy (SDG 7), as well as to climate change mitigation (SDG 13).

PIDG has since 2002

  • mobilised USD 37.6 billion, of which 23 billion from the private sector;
  • provided access to 220 million people to new or improved infrastructure;
  • put 120 infrastructures into operation;
  • created 322,000 jobs.

Supporting PIDG is in line with the engagement with the private sector called for in the International Cooperation Strategy 2021-2024 to achieve the SDGs. Furthermore, it meets the three criteria set out in the Switzerland's International Cooperation Strategy 2021-2024. These call for creating access to basic utility services for people in developing countries; taking into account Switzerland's long-term interests in climate protection and opportunities for Swiss companies in the field of green technologies; and using Switzerland's added value as a recognised hub for sustainable and innovative financing for the SDGs in developing countries.

Switzerland's support allows it to provide a coordinated, powerful response with other like-minded donors to the challenges of sustainable infrastructure in developing countries. Switzerland's contribution comes from the Development Cooperation framework credit in accordance with the Federal Decree of 21 September 2020.

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Last modification 30.01.2024

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