The firm aims to promote digital inclusion and reduce the gap between emerging and developed markets through strategic investments in connectivity.
Finnfund is setting its sights on fibre networks as a major investment theme for 2026, emphasizing their potential to bridge the digital divide in emerging markets. Kuutti Kilpeläinen, Senior Investment Manager and Head of the Digital Infrastructure and Solutions portfolio at Finnfund, highlighted the rapid growth in population, data consumption, and economic activity in these regions, underscoring the pressing need for new digital networks. The firm aims to promote digital inclusion and reduce the gap between emerging and developed markets through strategic investments in connectivity.
Alongside fibre networks, AI and data centres are emerging as key trends in Finnfund’s investment strategy. While countries like Malaysia and Thailand see hundreds of megawatts of data centre construction annually, Africa currently has only 300 MW. Kilpeläinen noted that as AI adoption increases, the demand for local, high-performance data centres will multiply, requiring gigawatts of capacity to meet user needs.
Finnfund manages a total of €1.3 billion in investments, with approximately €200 million allocated to companies advancing digitalisation. Its strategy centers on impact investing, which seeks not only financial returns but also positive social outcomes. This approach aligns with ESG principles, combining profitability with societal benefits. Impact investing enables faster, more affordable, and widely available digital services, improving both economic and digital inclusion across communities.
The organisation invests €200–250 million annually, aiming to dedicate 40% of that to digital businesses. Since launching its digital strategy in 2021, the portfolio has grown to include 15 companies, with the investment team expanding from two to eight members. Finnfund typically acts as a minority investor, providing €5–20 million per company, focusing on growth-stage businesses rather than startups, with the goal of enabling further scale.
Notable investments include Mexican company Netwey, which delivers fibre networks in underserved regions, providing residents and businesses with fast, affordable internet without long-term contracts. In Africa, Finnfund has backed Wave Mobile Money, a leading mobile payments provider in Senegal and Côte d’Ivoire, offering services that are up to 70% cheaper than traditional methods and widely used across the population.
Finnfund’s investment process involves extensive market screening, due diligence, and partnership with local private equity firms, development funds, and multilateral banks. Investments are made alongside these partners, who bring critical local market knowledge. The organisation also runs the Finnfund Digital Access Impact Fund I, its first self-managed fund, currently at €80 million with a target of €150 million. The fund is designed to attract private institutional investors such as pension funds and family offices.
Through these initiatives, Finnfund seeks to generate both strong financial returns and measurable societal impact, expanding digital access, supporting economic growth, and enabling inclusive development across emerging markets.
