Finnfund, a Finnish development financier and impact investor, has closed EUR 80 million to invest in digital infrastructure and solutions in a move to bridge the digital divide and promote digital, financial and gender inclusion in underserved regions in Africa, Asia and Latin America.
This is the first closing of Finnfund Digital Access Impact Fund I LP (DAIF), marking a significant milestone in mobilising private capital for impactful investments in emerging markets.
According to Hanna Loikkanen, Finnfund´s Chief Investment Officer, “The first closing of Finnfund Digital Access Impact Fund I LP (DAIF) is a pivotal step in our mission to mobilise private capital for sustainable development. This fund not only addresses critical digital infrastructure needs but also empowers communities by enhancing access to essential services. We are excited to offer professional investors a chance to partner with us in driving meaningful change in these rapidly growing markets.”
The fund provides professional investors the opportunity to enter emerging markets alongside Finnfund, an experienced impact investor with over 40 years of expertise. The fund benefits from a risk-sharing facility and technical assistance, issued under the European Commission’s European Fund for Sustainable Development. DAIF targets investments in sectors such as telecom towers, digital infrastructure, and scalable high-impact technology solutions, seeks to offer access to attractive growth, high-impact markets and sector.
Capital for a more inclusive digital future
The focus of the fund is on closing the coverage gap, connecting unconnected communities and promoting affordable and reliable internet access. By investing in digital infrastructure and solutions, Finnfund aims to create a more inclusive digital future, fostering economic growth and improving quality of life in the regions it serves.
As digital use expands from basic communication to services like e-commerce and remote work, the economic impact grows. “These applications need more bandwidth and reliable connectivity, yet most African users rely on limited mobile data. This is where the fund’s portfolio companies come into play. The rise of unlimited home Wi-Fi, especially in countries that the fund targets, presents a major opportunity to drive digital inclusion and economic growth”, says Loikkanen.
Finnfund also integrates child-related considerations in the investment process, advancing positive outcomes for children while minimising harm. The Child-Lens Investing approach was developed in collaboration with UNICEF Innovative Finance Hub.
“The first closing of Finnfund Digital Access Impact Fund I LP shows the power of collaboration between public and private sectors”, says Ville Tavio, Minister for Foreign Trade and Development. “By mobilising private capital, we can enhance the efforts to finance sustainable development in partner 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.”
The Ministry for Foreign Affairs and Finnfund are anchor investors of the fund. Finnfund Digital Access Impact Fund I LP 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.