Government ownership steering
The Ministry for Foreign Affairs is charged with steering Finnfund on the shareholders’ behalf.
Each year, the Foreign Ministry issues a Government Ownership Steering Memorandum, in which it sets Finnfund’s development policy and operational goals.
Finnfund’s Board of Directors holds a discussion on meeting Finnfund’s objectives. Also the Supervisory Boards takes note of the Memorandum.
Government’s ownership steering is based on the Government’s White Paper on Development Policy, approved in February 2016. Finnfund is one the instruments of Finland’s development policy.
On that basis the Ministry expects Finnfund to:
- Focus its activities in countries of low and lower middle income, or countries in fragile context in which risk capital is scarce and the added-value of development financing the greatest;
- Emphasize certain sectors (among others renewable energy, sustainable forestry, food security, manufacturing, innovative growth sectors) due to their economic and social impact;
- Operate responsibly and take sufficiently into consideration environmental and social responsibility as well as human rights;
- Be financially profitable.
There is a set of indicators for assessing progress towards the goals.
Besides the annual memorandum, Finnfund’s special role in Finland’s development policy is stipulated by the law.