Development Economics Brief

In 2025 Sida increased its work on migration with an enhanced focus on strengthening synergies between development assistance and Swedish migration policy. During 2025, the level of funding towards migration increased substantially and a total of SEK 681 million was disbursed. Sida implemented the strategy for ‘Sweden’s global development cooperation on migration, returns and voluntary repatriation 2024–2028’ with a total volume of SEK 3 billion, including 350 million SEK for 2025. In addition, 10 other development strategies with migration-related goals were implemented. This has led to an increase in the total number of interventions and new partnerships. Sida mainly collaborated with multilateral partners. New partnerships with civil society and Swedish authorities were also initiated. Sida’s development programs on migration were implemented with two main aims: i) to reduce irregular migration through strengthened asylum and migration management, and ii) to enhance conditions for safe and dignified return, voluntary repatriation and sustainable reintegration.

Employment, private sector development and trade are powerful and interdependent drivers for inclusive economic development and poverty reduction. Small and medium-sized enterprises generate over half of all jobs globally and play an important role in low-income countries. Employment is the main source of income for people living in poverty. Trade is an engine for growth and can lead to more and better jobs. Businesses also provide markets and people with essential goods and services. Inclusive, equal education and lifelong learning decreases poverty and secures individuals’ income generating possibilities. However, several factors constrain people living in poverty from accessing markets, participating in the labour market and benefiting from trade and growth. Sida contributes to inclusive economic development and education where people living in poverty can participate and benefit on equal terms. In total, Sida’s interventions in this area amounted to SEK 4.2 billion in 2025, constituting nearly 19 per cent of Sida’s total disbursements.