Finland and the EU launch major programme targeting to mobilise up to 2 billion euros for projects that advance digitalisation in Africa, Asia and Latin America

Finnfund, a Finnish impact investor, is joining forces with the European Union to launch the EU’s largest guarantee programme for the digital sector. Under the EU Finnfund Global Connected Guarantee initiative, the EU will provide guarantees worth 222 million euros for Finnfund’s investments, helping to mobilise up to 2 billion euros for projects that advance digitalisation in Africa, Asia and Latin America. In addition, the EU will support the preparation of Finnfund’s new investments with 13 million euros.

Finnish companies will have opportunities to supply technology or services to businesses in developing countries where Finnfund invests. Investments may also be made directly in Finnish-owned companies operating in these markets.

“This programme creates pathways for Finnish digital expertise to access new international markets. Bridging the digital divide is not only a significant commercial opportunity but also a way to generate impact. The programme focuses on building broadband connectivity, developing digital solutions, and improving access to products and services. Investments may include subsea cables, data centres, mobile payment solutions, artificial intelligence and other digital innovations,” explains Jaakko Kangasniemi, CEO of Finnfund.

The programme supports EU and Finnish priorities such as promoting gender equality, positive climate impacts and economic inclusion. According to the World Bank, a 10% increase in digital connectivity can lead to a 2.5% rise in GDP. Countries that fail to connect effectively risk falling further behind in global development.

“Finnfund’s new programme represents Finland’s most significant contribution to the EU’s Global Gateway strategy. It is also a shared recognition of the digital sector’s role in advancing sustainable development. For Finnish companies, this is an excellent and tangible opportunity to enter new markets,” says Prime Minister Petteri Orpo.

Orpo attended the European Union – African Union summit in Luanda, Angola, alongside President of the European Commission Ursula von der Leyen, where the programme was confirmed.

Investment volume doubles

Finnfund is among the first implementing partners of guarantees under the European Fund for Sustainable Development Plus (EFSD+). EFSD+ is one of the EU’s financing instruments for promoting sustainable investments in partner countries. Within this framework, Finnfund launched the Africa Connected programme in October 2023. The newly announced EU Finnfund Global Connected Guarantee will double the total investment volume and expand opportunities beyond Africa to Asia and Latin America.

“This programme marks a major step forward in advancing Finnfund’s and the EU’s shared objectives. As a technology-driven impact investor, we focus on solutions that make services affordable for consumers without compromising speed or quality. Finnish companies can add significant value here,” Kangasniemi adds.

More information:
Patrik Bredbacka, Senior Partnerships and Business Development Adviser, Finnfund
+358 40 545 8447
patrik.bredbacka@finnfund.fi

Media enquiries:
Valpuri Mäkinen, Senior Communications and Marketing Manager, Finnfund
+358 50 384 2105
valpuri.makinen@finnfund.fi

Finnfund is a Finnish development financier and impact investor. Finnfund builds a sustainable future and generates lasting impact by investing in businesses that solve global development challenges with Finnish added value. Each year, we invest 200–250 million euros in 20–30 companies in developing countries. Our focus is particularly on digital infrastructure and solutions, clean energy, forestry, agriculture, and on providing funding for small and medium-sized enterprises through financial institutions. Today, Finnfund’s investments, commitments, and investment decisions total about 1.3 billion euros. The company has about 100 employees based in Helsinki and Nairobi.