Development financier Finnfund’s new investment fund to support digital inclusiveness in developing countries
The Finnish development financier Finnfund has set up a new investment fund to support the development of digital services and infrastructure in developing countries. The aim is to promote gender equality and financial inclusiveness in Africa, Asia and Latin America.
Finnfund Digital Access Impact Fund I (DAIF) marks a significant milestone in Finnfund’s aim to mobilise private capital for investments in sustainable development. The fund’s first closing raised EUR 80 million from private and public investors.
“The first closing of Finnfund Digital Access Impact Fund I shows the power of collaboration between public and private sectors. By mobilising private capital, we can enhance the efforts to finance sustainable development in partner countries,” says Minister for Foreign Trade and Development Ville Tavio.
DAIF targets investments in sectors such as telecom towers, digital infrastructure and scalable technology solutions. Investments offer high risk and return potential and positive social impact.
Private funding as part of development cooperation
Finnfund is a Finnish development financier and impact investor investing in responsible companies operating in developing countries. Finnfund is a state-owned company, and the Ministry for Foreign Affairs is responsible for its ownership steering. The new fund provides Finnish and international institutional investors the opportunity to enter emerging markets alongside Finnfund, which has over 40 years of experience of the fund’s target markets.
Public development funding alone does not suffice to deliver the Sustainable Development Goals. This is why Finland seeks to increase the private sector's participation in development cooperation and development finance. Finnfund and other similar actors are central to this work, as they can mobilise private capital for impactful investments in developing countries.
“This fund exemplifies Finland’s commitment to leveraging innovative financial solutions to address critical infrastructure needs and promote inclusive growth. We support initiatives that not only drive economic development but also improve the quality of life for many communities in emerging markets," says Minister Tavio.
Digital infrastructure plays an important role in fostering sustainable development and boosting economic activity. DAIF focuses on improving the availability of services, connecting unconnected communities and promoting affordable and reliable internet access.
“Households’ access to unlimited network connections enables e-commerce and remote work, for example. This, in turn, supports economic growth and improves the quality of life,” says Hanna Loikkanen, Finnfund´s Chief Investment Officer.
Finnfund also integrates child-related considerations in the investment process. The Child-Lens Investing approach, which was developed in collaboration with UNICEF Innovative Finance Hub, is used to assess how investments impact children.
First investments in 2025
The Ministry for Foreign Affairs and Finnfund are anchor investors of the fund. The Ministry is investing EUR 40 million in the fund. Finnfund Digital Access Impact Fund I makes its first investments during 2025, with initial investments under consideration targeting to bring unlimited high-speed internet to more low-income households in Latin America.