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Finnish impact investor Finnfund has partnered with the European Union to create the EU’s largest-ever guarantee programme dedicated to the digital sector. The initiative, named the EU Finnfund Global Connected Guarantee, will see the EU provide 222 million euros in guarantees to back Finnfund’s investments, a move projected to mobilize up to 2 billion euros for digitalization projects across Africa, Asia, and Latin America.
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Furthermore, the EU is bolstering this effort with an additional 13 million euros in funding to support the preparation and development of Finnfund’s new investments.
Finnish companies will have opportunities to supply technology or services to businesses in the developing countries where Finnfund invests. Investments may also be made directly in Finnish-owned companies operating in these markets.
Programme supports EU and Finnish priorities in beneficiary-countries
“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 digital 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. It will also 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.
