Finnish investment firm Finnfund successfully secures €80 million for the initial phase of its Digital Access Impact Fund focused on enhancing digital infrastructure and services in developing countries.

In a significant move towards promoting economic development and improving the quality of life in emerging markets, Finland's Minister for Foreign Trade and Development, Ville Tavio, has expressed support for initiatives that drive sustainable growth. One such initiative is the Digital Access Impact Fund (DAIF), a new fund raised by Finnfund, the development finance institution of Finland.

DAIF has recently secured €80m at its first close, with Finnfund acting as an anchor investor alongside the Finnish Ministry for Foreign Affairs. The fund aims to enhance efforts to finance sustainable development in partner countries by mobilizing private capital.

The European Commission's European Fund for Sustainable Development provides a risk-sharing facility for DAIF, benefiting the fund with technical assistance and a risk-sharing facility.

DAIF focuses on critical digital infrastructure needs and helping local communities gain better access to key services. In Africa, where most residents rely on limited mobile data, the rise of e-commerce and remote working has led to increased demand for more bandwidth and improved connectivity across the continent. In response, DAIF is considering an investment to bring unlimited high-speed internet to more low-income households in Latin America.

Heikki Cantell, the chair of Finnfund's board of directors, has expressed a goal to double Finnfund's investments in digital technology. This ambition was announced in May, aligning with Finland's commitment to leveraging innovative financial solutions to address critical infrastructure needs and promote inclusive growth.

Each year, Finnfund makes 20-30 new investments worth between €200-€250m in portfolio companies in emerging markets. With these investments, Finnfund's current total stands at approximately €1.3bn.

The Digital Access Impact Fund (DAIF) exemplifies Finland's dedication to fostering digital, financial, and gender inclusion in underserved regions in Africa, Asia, and Latin America. As the world continues to digitize, the need for initiatives like DAIF becomes increasingly important in bridging the digital divide and ensuring equitable access to the benefits of technology.

Finnish investment firm Finnfund successfully secures €80 million for the initial phase of its Digital Access Impact Fund focused on enhancing digital infrastructure and services in developing countries.