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Development impact

Good jobs in rural areas, more clean energy, fighting deforestation and climate change, tax revenue and payments to developing countries. These are some examples of the various development impacts that are generated by the companies Finnfund finances.

Finnfund’s role is to promote economic and social development in developing countries by financing responsible and responsible private business operations.

Development impacts vary, depending on the investment – in some of them the main emphasis can be on job creation, while in the others the emphasis is more, for example, on the impacts of increasing energy production.

Development impacts are also examined from on different levels:

  • the direct effects of the company’s operations (e.g. good jobs, increased electricity generation, improved infrastructure)
  • indirect effects of the operations (e.g. the benefits of contract farmers, fight against deforestation and biodiversity loss, lower electricity prices and increased reliability of energy production)
  • impacts in wider society (e.g. tax revenues and payments to the government, economic growth, climate change mitigation)

Often, companies also carry out various community projects with their local communities alongside their core business. Typically, these are projects are related to education, health, and water supply or sanitation.

This is particularly typical for companies operating in remote rural areas or areas which have been otherwise left behind.

Finnfund assesses and monitors the development impacts of the companies it finances always before the investment decision and during the entire life cycle of the investment.

Some of the key results are published annually on Finnfund’s Development Results (since 2017 available also in English).

In 2017, the companies Finnfund financed, generated

6,065 GWh

of clean energy & sold 120,000 household solar systems

In 2017, the companies Finnfund financed, granted

5,930,000

micro and SME loans – 40% clients were women.

In 2017, the companies Finnfund financed, managed

867,000 ha

of sustainable forest – of which 814,900 ha FSC® certified.

In 2017, the companies Finnfund financed, reached

2 million

farmers – of which 79% were women.

In 2017, Finnfund disbursed

75.5 million €

for climate change mitigation or adaptation.

In 2017, the companies Finnfund financed, paid

411 million €

taxes and other payments to governments in target countries.

Development impact assessment

How does Finnfund assess and monitor development impacts?

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Reports and publications

Interested to know more? Read our latest reports and publications.

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