Jobs and growth

Fostering local growth and promoting decent work by creating good jobs, sustainable livelihoods and well-being lies at the heart of Finnfund’s mission as a development financier and impact investor. This work also contributes to Sustainable Development Goal 8: Decent work and economic growth.

A significant share of the world’s future economic growth is expected to be generated in developing countries. To achieve broad-based economic development, it is vital that these countries have sufficient capital to finance private sector investments.

Many projects that have a significant development impact would never take off without long-term financing provided by Finnfund and other development financiers. Finnfund supports the development of a sustainable and profitable private sector through patient financing, especially in situations where market-based financing is difficult or unavailable. Finnfund’s funding is often catalytic because it helps projects to raise additional commercial financing.

This approach helps create jobs and livelihoods, strengthens national tax bases, and supports a just transition to environmentally sustainable development.

We spur local economic growth

Finnfund drives local growth by investing in sustainable and impactful businesses that promote economic development and improve living standards. By providing long-term financing and expertise, Finnfund supports businesses that create jobs, foster innovation, and enhance local infrastructure. The focus on sustainable and inclusive development ensures that the benefits of growth are widely shared, improving the quality of life in local communities.

In addition, Finnfund’s commitment to environmental, social, and governance (ESG) standards ensures that the investments not only generate financial returns but also contribute positively to the communities they serve. This holistic approach helps build resilient economies and promotes inclusive growth.

Finnfund particularly seeks investments in sectors that can significantly boost local growth in developing markets by creating numerous jobs, reducing unemployment, and strengthening local economies. These investments also help diversify economies, making them more resilient to economic shocks, and often lead to the development of essential infrastructure – such as roads and processing plants – that benefit other sectors as well.

We foster the creation of decent jobs and livelihoods

In addition to promoting sustainable economic development, Finnfund’s operations support decent work by creating quality jobs, sustainable livelihoods, and well-being. The number of jobs alone does not reflect their quality, target demographics, or impact on people’s lives. Therefore, Finnfund emphasises qualitative aspects such as gender equality and human rights in the workplace and develops tools and reporting mechanisms to support these goals.

At the same time, constructive relationships and negotiations between workers and management – along with fair, healthy, and safe working conditions – enhance business efficiency and profitability.

Finnfund’s Sustainability Policy outlines its approach to decent jobs, ensuring compliance with the ILO Core Labour Standards, which include the elimination of child and forced labour, non-discrimination, and the right to a safe and healthy work environment. These standards are aligned with IFC Performance Standard 2 (PS2), which applies to direct employees, third-party workers, and supply chain workers.

Where gaps in decent work practices are identified, Finnfund collaborates with its investees to develop corrective measures that improve working conditions for the employees of the financed companies as well as other stakeholders. Initial steps include implementing formal employment contracts, regulating working hours, ensuring regular wage payments, and establishing anonymous grievance mechanisms.

You can read more about our human rights approach at Human rights – Finnfund.

You can read more about our approach on gender equality at Gender equality – Finnfund