The Finnish development financier Finnfund has launched a new investment vehicle, the Finnfund Digital Access Impact Fund I (DAIF), to support digital services and infrastructure development in Africa, Asia, and Latin America. The fund aims to promote gender equality and financial inclusion while mobilizing private capital to drive sustainable development. At its first closing, DAIF raised €80 million from a mix of public and private investors, reflecting growing collaboration between sectors to finance impactful projects in emerging markets.
DAIF focuses on investments in telecom towers, digital infrastructure, and scalable technology solutions, offering both high social impact and potential financial returns. By providing Finnish and international institutional investors access to emerging markets alongside Finnfund, the fund leverages over 40 years of Finnfund’s experience in responsible investment in developing countries. This initiative aligns with Finland’s broader strategy to complement public development funding with private sector engagement to achieve the Sustainable Development Goals.
Digital infrastructure is central to the fund’s mission, as it fosters economic growth, expands access to essential services, and connects previously unconnected communities. Improved internet access enables opportunities like e-commerce and remote work, thereby enhancing quality of life and supporting inclusive economic activity. Finnfund also applies its Child-Lens Investing framework, developed with UNICEF, to ensure that investments consider and positively impact children.
DAIF’s first investments are scheduled for 2025, with early projects expected to provide unlimited high-speed internet to low-income households in Latin America. The Finnish Ministry for Foreign Affairs and Finnfund are anchor investors, with the Ministry contributing €40 million to the fund. This initiative exemplifies Finland’s commitment to using innovative financial solutions to promote inclusive growth and address critical infrastructure needs in developing countries.
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