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May 14, 2024

Finnfund’s investment portfolio grew up to EUR 830 million – more focus on digitalisation and mobilisation of private capital

Finnfund’s Annual Report 2023 has been published.

Finnfund, a Finnish development financier and impact investor, has published its Annual Report 2023. The report collates key information about Finnfund’s financial performance, sustainability, and impact.

Last year, the company’s investment portfolio grew from EUR 810 million to EUR 830 million. Finnfund’s investments, commitments, and investment decisions totalled about EUR 1.23 billion at the end of the year. Africa remained Finnfund’s primary investment destination, accounting for 46% of volume and 30% of decisions.

“I am pleased to say that, despite the somewhat challenging investment environment, for Finnfund, 2023 was a record year in many ways. Our operations were profitable, and once again we exceeded our targets for impactful investment decisions. Importantly, aligned with dollars and euros, our impact also kept on growing,” said Jaakko Kangasniemi, Finnfund’s CEO and Managing Director.

In 2023, Finnfund exceeded its target for new investments, making 35 new investment decisions totalling EUR 256 million. 95% of these new investment decisions took place in lower middle-income and poorer countries.

Profit for the year totalled EUR 3,803,242, and all of it will be used to make new investments.

During the year, Finnfund also took major steps forward in developing its operations. More resources were targeted at supporting Ukraine’s recovery as well as increasing cooperation with Finnish businesses. Finnfund also started preparing its first Nature and biodiversity statement, which will be ready and published later this year.

Jaakko Kangasniemi, CEO and Managing Director at Finnfund.

“Mastering the craft of development impact is and must be a team play. Therefore, Finnfund´s goal is to foster sustainable development not only by investing our own resources in impactful projects but also by providing investment opportunities for private investors. I wish to thank all our investees, co-investors, and other partners and friends for great collaboration,” Kangasniemi concludes.

In 2023, Finnfund issued a EUR 100 million green bond under its Sustainability Bond Framework. Mobilising private capital is key to achieving the UN Sustainable Development Goals (SDGs) in developing countries. The bond also supports Finnfund’s strategic objective of promoting sustainable development by increasing the proportion of private capital in its financing to at least 50 per cent.

In addition, Finnfund signed an agreement with the European Commission under the European Fund for Sustainable Development Plus (EFSD+), providing Finnfund an opportunity to grow its investment portfolio of digital solutions and infrastructure in Sub-Saharan Africa by up to 166 million euros over three years. The Africa Connected programme is a landmark agreement aimed at mobilising more than one billion euros in sustainable investments for digital infrastructure and digital service platforms in Sub-Saharan Africa.

The Annual Report also collates the latest information (for 2022) about the impact and sustainability of Finnfund’s investment activities at the portfolio level.

In 2022, the companies funded, in part, by Finnfund, for example:

  • supported a total of 276,000 jobs, 39% of which were women,
  • generated a total of 9,100 gigawatts of energy,
  • cooperated with 6.5 million smallholders, 79% of whom were women,
  • granted 6 million loans (totalling EUR 10 billion) to micro, small, and medium-sized enterprises, and
  • provided digital services and infrastructure to 153 million people.

Finnfund’s investments also sequestered 185,000 tCO₂, which is equivalent to 1,400 tCO₂e per outstanding million. This is the share attributed to Finnfund in accordance with its funding share. The sequestered amount is significantly higher than the similarly attributed emissions of the companies financed by Finnfund. As a result, Finnfund’s investments removed a total of 98,000 tCO₂ more than they emitted. This is also one of the Finnfund’s three strategic goals.

Read more in Finnfund’s Annual Report: Annual Report 2023 – Finnfund

More information:
Jaakko Kangasniemi, CEO, tel. +358 (0)40 577 7676,
Kirsi Pere, Communications Manager, tel. +358 (0)40 620 9767, (media contacts)

Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.23 billion euros, half of them in Africa. The company has 97 employees based in Helsinki and Nairobi. For more information, please visit

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