The EU-backed initiative will support digital infrastructure and services across emerging markets, aiming to accelerate connectivity and economic development.
Finnfund, Finland’s development finance institution, and the European Union have launched a new programme designed to mobilise up to €2bn for digital infrastructure and services for projects that advance digitalisation in Africa, Asia and Latin America.
The programme is part of the EU’s Global Gateway strategy, which aims to strengthen sustainable connectivity with partner countries and marks the EU’s largest guarantee initiative for the digital sector to date.
Under the EU Finnfund Global Connected Guarantee, the EU will provide €222m in guarantees for investments made by Finnfund.
A further €13m will support the preparation of new projects. The initiative expands Finnfund’s existing Africa-focused work to Asia and Latin America, doubling the organisation’s total investment capacity under the EU’s EFSD+ guarantee framework, which acts as a financial tool under the Global Gateway strategy by providing guarantees to lenders.
According to Finnfund, potential investments will include subsea cables, data centres, mobile payment solutions and artificial intelligence applications.
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, Finnfund said.
Digitalisation strategy
Digitalisation has become a growing pillar of Finnfund’s impact strategy. Speaking to Impact Investor, Heikki Cantell, chair of the board of directors at Finnfund and general counsel and secretary general at the Nordic Investment Bank, said the objective of the initiative is to bring essential technology and digital infrastructure to developing countries so they can fully participate in the benefits of the digital economy.
“Digital access provides people with equal opportunities to use vital services, from entrepreneurship to justice. Fluent communication and access to information are now fundamental drivers of development,” said Cantell.
Finnfund CEO Jaakko Kangasniemi said the programme creates new opportunities for both impact and commercial partnership. “Bridging the digital divide is not only a strategic growth opportunity for Finnish expertise, it is a direct way to generate impact,” he said. “Our focus is on connectivity, digital solutions and improving access to essential services.”
Furthermore, Finnfund’s due-diligence approach will remain central under the new guarantee, with every investment undergoing “rigorous analysis” by Finnfund’s experts, Cantell told Impact Investor.
“We maintain strict monitoring throughout implementation to ensure the development impact we commit to is actually delivered,” he said.
Finnish prime minister Petteri Orpo said the programme represents Finland’s most significant Global Gateway contribution to date, calling it “a tangible opportunity for Finnish companies and a shared recognition of the digital sector’s role in sustainable development”.
