Finland, together with the European Union, launched a bold financial instrument with the aim of fast-tracking the digital transition of developing areas. The innovative European Union Finnfund Global Connected Guarantee is the largest guarantee scheme undertaken by the EU within the digital industry, with the purpose of unleashing unprecedented investment opportunities. This partnership will ensure filling the digital divide, as well as opening vast investment opportunities for European technology firms.
Expertise from Finland provides keys that unlock opportunities in new markets
Finnfund, the Finnish impact investor, launched a guaranteed investment program worth €222 million in collaboration with the European Union. This will ensure the facilitation of €2 billion investments in digitalization projects in Africa, Asia, as well as Latin America, with €13 million devoted to investment preparation. Finnish firms will provide technology or services directly to developing countries that Finnfund investments will be targeting.
This program will offer channels through which Finnish digital expertise will be in a position to enter new markets globally, as well as offer solutions for some of the basic infrastructure deficiencies. Such investments may emerge through sub-sea cables, cloud-based infrastructure, payment solutions for mobile operators, AI solutions, and other digital solutions. Prime Minister Petteri Orpo confirmed this program in the European Union-African Union Summit, which was ongoing in Luanda, Angola, together with the European Commission’s Ursula von der Leyen.
An increase in digital connectivity of 10% corresponds with a GDP outcome increase of 2.5% as shown in a finding of a World Bank study. Countries that do not connect properly will be left behind. This project is more valuable within the developing world. This project relates to the relevant interests of the European Union, as well as those of Finland, such as the promotion of female equality, environmental benefits, and economic integration.
It doubles existing investment capacity and geographical extent
Finnfund is one of the first Implementing Partners of the European Fund for Sustainable Development Plus (EFSD+), which is a key financial instrument of the European Union in promoting sustainable investments in partner countries. Finnfund now has a new guarantee, namely the EU Finnfund Global Connected Guarantee, that will double the cumulative investment level, with investment opportunities not only in Africa but also in Asia, as well as Latin America. Finnfund’s Africa Connected program was launched in October 2023.
“The strengthened programme remains the most crucial Finnish input within the framework of the Global Gateway strategy of the European Union, taking into consideration that the digital industry plays a fundamental role in the promotion of sustainable development. Finnish companies come with valuable contributions through their technological solutions that enhance the use of services for the masses without affecting speed. “It’s a digital divide, which translates into economic opportunities with a real impact,” explains its CEO, Jaakko Kangasniemi.
This project provides channels through which the digital expertise of Finns can venture into new markets abroad. “Closing the digital divide not only presents a huge economic opportunity, but it’s also a mechanism through which we can deliver impact,” explained Jaakko Kangasniemi, Finnfund’s CEO.
Emphasis on Sustainable Technology Solutions
The project essentially deals with the installation of broadband infrastructure, the development of digital solutions, and improved accessibility of basic products/services in the new markets. Finnfund, being a technology-driven impact investor, specifically focuses on solutions that offer low-priced services with high speeds. Emphasis is given to the principles of sustainable development, as well as creating a realistic entry point for technology-based Finnish companies.
The EU Finnfund Global Connected Guarantee initiative represents a transformative approach to digital infrastructure development in emerging markets. By combining substantial financial guarantees with Finnish technological expertise, the programme addresses critical connectivity gaps while creating sustainable commercial opportunities. This strategic partnership demonstrates how targeted investment mechanisms can accelerate digital transformation while generating meaningful economic and social impact across developing regions.
