Finnfund is Finland’s development finance institution, established to mobilize private capital for sustainable development across emerging markets. Headquartered in Helsinki, Finnfund invests in businesses and funds that deliver measurable impact alongside financial returns, with a focus on digital infrastructure, renewable energy, sustainable forestry, agriculture, and small- and medium-sized enterprises. The institution currently manages investments, commitments, and decisions totaling about €1.3 billion.
Finnfund concentrates on emerging markets in Africa, Asia, and Latin America, backing companies that improve access to critical services while driving inclusive economic growth. The Digital Access Impact Fund (DAIF) reflects its strategic emphasis on digital, financial, and gender inclusion, specifically targeting underserved communities.
Finnfund prioritizes scalable solutions that combine strong commercial potential with positive social and environmental outcomes.
In September 2025, Finnfund announced the first close of its Digital Access Impact Fund I LP at €80 million. The fund is anchored by Finnfund itself and Finland’s Ministry for Foreign Affairs, with additional support from the European Commission through its European Fund for Sustainable Development. DAIF is designed to mobilize private capital into underserved markets by addressing critical digital infrastructure needs such as telecom towers, broadband expansion, and scalable high-impact technology solutions.
A key feature of the fund is its dual structure, which includes technical assistance and a risk-sharing facility to de-risk investments and enhance their development impact.
The fund’s mandate goes beyond infrastructure to improve digital and financial inclusion, especially for women and low-income households.
DAIF is positioned to benefit from rising demand for connectivity driven by e-commerce, digital payments, and remote working, particularly across Africa where data access remains limited. By blending public anchor capital with private investors, the fund aims to catalyze large-scale impact while delivering sustainable financial performance.
Leadership
The initiative is overseen by Finnfund’s leadership team, including Chief Investment Officer Hanna Loikkanen and Board Chair Heikki Cantell. Loikkanen has emphasized the importance of DAIF in providing underserved regions with improved access to key digital services, while Cantell has framed the fund as part of a broader strategy to double Finnfund’s investments in digital technology. Political backing comes from Finland’s Minister for Foreign Trade and Development, Ville Tavio, who has highlighted the fund as a flagship example of Finland’s commitment to innovative financing for inclusive growth.
Investment Strategy
Finnfund’s strategy combines blended finance with impact-driven investing. Through DAIF, it seeks to channel private capital into high-impact sectors while mitigating risk via guarantees and technical support.
The investment approach emphasizes early identification of scalable, commercially viable digital infrastructure projects that also enhance access, affordability, and gender equity. By leveraging Finnfund’s network, sector expertise, and policy connections, the fund aims to provide long-term support to portfolio companies while aligning with the UN Sustainable Development Goals.
Notable Investments
DAIF is newly launched, and its portfolio is still under development. Finnfund as an institution, however, has a track record of making 20–30 investments annually worth €200–€250 million, with notable activity in clean energy, forestry, agriculture, and financial services across Africa and Asia.
The new fund builds on this track record, extending Finnfund’s role into the digital infrastructure and inclusion space.
Notable Exits
As DAIF is a first-time vehicle, there are no notable exits yet. Finnfund’s broader portfolio includes multiple long-standing investments with realized development impact across renewable energy, agriculture, and sustainable forestry, but exits specific to DAIF are not yet available.
Other
DAIF is structured as a blended-finance vehicle, making it well suited for early infrastructure and technology projects that require de-risking to attract private investors. The presence of public anchor investors and an EU-backed risk-sharing facility signals strong institutional support and stability.
This can make the fund a particularly attractive partner for companies tackling connectivity and inclusion challenges in frontier markets.
For entrepreneurs, alignment with measurable impact metrics, particularly those tied to digital inclusion and gender equality, will be critical in securing investment.
