|
|
|
|
|
|
Dear Finnfund Community,
Global tensions, shifting market conditions and ongoing uncertainty continue to shape the environments in which we operate. In this context, Finnfund’s long-term mandate is more important than ever.
|
In this issue of our newsletter, I am pleased to present our Annual Report 2025. During the year, we strengthened our ability to deliver impact by mobilising private capital, including the launch of the Finnfund Digital Access Impact Fund I and the EU Finnfund Global Connected Guarantee, the EU’s largest guarantee programme for the digital sector to date. Digital infrastructure is also a sector where Finnish technology tends to contribute the most. Our investments very often involve Finnish companies as technology or service providers, owners, or co-investors.
|
|
|
|
A long-term perspective remains essential. It enables us to invest in complex markets, manage risks prudently, and deliver lasting impact and sustainable financial performance. At Finnfund, investments are guided by our three strategic priorities: establishing our role as a technology-driven impact investor, ensuring that climate and nature drive investment decisions, and promoting local growth by supporting decent jobs and sustainable livelihoods.
|
We look forward to building on this momentum and appreciate the continued support and engagement of our stakeholders.
|
Jaakko Kangasniemi
|
P.S. We wish you find this quarterly newsletter useful. Should you wish to receive this newsletter in the future but have not yet joined our subscribers, please click here. You can unsubscribe at any time.
|
|
|
|
|
|
|
ANNUAL REPORT – Finnfund has published its Annual Report 2025, which presents the company’s financial performance, investments and impact during the year.
|
At the end of 2025, Finnfund’s portfolio stood at 857 million euros and comprised 146 investees. During the year, 24 new investment decisions totalling 181 million euros were made, bringing Finnfund’s investments, commitments and investment decisions to over 1.2 billion euros.
Impact highlights include:
• Our investees supported 291,000 jobs of which 38% are for women
• 7.1 million micro and SME loans – total value EUR 15.8 billion
• 153.8 million active customers using digital services
• 5,330 GWh of energy generated
* Finnfund collects and verifies investees’ development impact data during Q2 and Q3 of the subsequent year. The development impact data is therefore from 2024. Data for 2025 will be presented in the 2026 Annual Report.
Finnfund’s investments also continue to bring Finnish expertise to developing markets: 54% of new investment decisions in 2025 involved Finnish companies as technology or service providers, partners or co-investors.
|
|
|
|
|
|
|
|
Investment decisions and disbursements in Q1/2026
|
|
|
|
|
|
EU Finnfund Global Connected Guarantee initiative expands to new regions and energy investments
|
|
The European Union and Finnfund have agreed to expand the EU Finnfund Global Connected Guarantee programme, unlocking an additional 80 million euros in guarantee capacity to support investments in both digital and energy infrastructure in the EU’s Neighbourhood East and Western Balkans regions. Read more
|
|
|
|
|
|
CFO Insights into Q1 2026
|
|
“The year has begun with strong portfolio growth, reaching a record level. During the first quarter, Finnfund approved three investment decisions totalling EUR 41 million. Over the quarter, the book value of the portfolio increased by EUR 103 million (equal to new investment disbursements) from the end of 2025, reaching EUR 819 million," says Finnfund's Chief Financial Officer Olli Sinnemaa. Read more
|
|
|
|
|
|
Finnfund invests in landmark Ecobank Nature Bond to boost sustainable agriculture and biodiversity in Africa
|
|
Finnfund has invested 15 million US dollars in a Nature Bond issued by Ecobank Transnational Incorporated (ETI), marking the first issuance of its kind by a commercial bank in Africa. The bond will mobilise up to USD 450 million to finance sustainable agriculture, biodiversity and water infrastructure across sub-Saharan Africa. Read more
|
|
|
|
|
|
Finnfund’s portfolio totals 857 million euros – more focus on advancing digitalisation and mobilising private capital through EU guarantees
|
|
Global tensions, shifting market conditions and growing geopolitical challenges shaped Finnfund’s operating context in 2025. Finnfund’s Annual Report 2025 illustrates how long-term investments in developing markets deliver development impact while maintaining a resilient and sustainable portfolio. Read more
|
|
|
|
|
|
BLOG - “Africa’s digital transformation is often described through its immense potential. A young and growing population, increasing data usage, and rapid urbanisation all point to a future where digital services play a central role in economic development.
|
|
At the same time, from an investor’s perspective, potential alone is not enough. At Finnfund, we see first-hand that closing the digital gap requires not just ambition, but investable business models. As I said in a recent podcast discussion with the Digital for Development Hub: hope is not a business model,” says Finnfund’s Associate Director, Head of Digital Infrastructure and Solutions portfolio, Kuutti Kilpeläinen.
|
|
|
|
|
|
|
Would you like to know more?
|
|
|
|
|
|
|
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 1.2 billion euros. The company has about 100 employees based in Helsinki and Nairobi. For more information, please visit www.finnfund.fi
|
|
   
|
|
|
|
|
|
