Finnish development financier Finnfund is partnering with the European Union to launch the EU’s largest-ever guarantee scheme for the digital sector. Through the EU Finnfund Global Connected Guarantee initiative, the EU will provide €222 million in guarantees to support Finnfund’s investments, helping to mobilise as much as €2 billion for digitalisation projects across Africa, Asia and Latin America. The EU will also contribute €13 million to support the preparation of Finnfund’s upcoming investments.
The programme opens up fresh opportunities for Finnish companies, which may supply technology and services to businesses in developing markets where Finnfund is active. Investments may also be channelled directly into Finnish-owned companies operating in these regions.
“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 initiative aligns with EU and Finnish objectives to promote gender equality, climate action and inclusive economic growth. The World Bank estimates that a 10% increase in digital connectivity can boost GDP by around 2.5%, while countries unable to expand digital access 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 EU–African Union summit in Luanda, Angola, together with President of the European Commission Ursula von der Leyen, where the programme was formally announced.
Investment Capacity Set to Double
Finnfund is among the first implementing partners for guarantees under the European Fund for Sustainable Development Plus (EFSD+), one of the EU’s key financing tools for encouraging sustainable investment in partner countries. Within this framework, Finnfund introduced the Africa Connected programme in October 2023. The newly launched EU Finnfund Global Connected Guarantee will double the overall investment envelope and extend opportunities beyond Africa to include 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.
