Finnfund, a Finnish development financier and impact investor, announced the first closing of its Digital Access Impact Fund I LP (DAIF), raising €80 million to accelerate digital inclusion across underserved regions in Africa, Asia, and Latin America. The milestone marks a significant step in mobilizing private capital toward high-impact investments in digital infrastructure and technology solutions.
DAIF is designed to invest in sectors critical to expanding connectivity and inclusion, including:
- Telecom towers and broadband infrastructure to extend coverage to remote and underserved communities
- Scalable digital platforms that enable access to financial services, education, healthcare, and remote work
- Technology solutions that promote gender equity and economic empowerment
The fund’s mission is to close the coverage gap, enabling affordable and reliable internet access for populations currently excluded from the digital economy. As digital usage evolves from basic communication to e-commerce, telemedicine, and virtual employment, the fund aims to catalyze economic growth and improve quality of life.
DAIF offers institutional investors a unique opportunity to enter emerging markets alongside Finnfund, which brings over 40 years of experience in impact investing. The fund is supported by a risk-sharing facility and technical assistance under the European Commission’s European Fund for Sustainable Development, enhancing its ability to manage risk while delivering measurable social and economic outcomes.
Anchor investors include Finnfund and the Ministry for Foreign Affairs of Finland, underscoring strong public-private alignment in advancing sustainable development goals.
In a pioneering move, Finnfund has integrated child-related considerations into its investment process through its Child-Lens Investing framework, developed in collaboration with the UNICEF Innovative Finance Hub. This approach ensures that investments not only avoid harm to children but also actively promote their well-being, particularly in areas such as education, safety, and digital access.
DAIF is set to begin deploying capital this year, with initial investments under consideration aimed at delivering unlimited high-speed internet to low-income households in Latin America. These projects are expected to serve as blueprints for scalable, inclusive digital infrastructure across other regions.
KEY QUOTES:
“The first closing of Finnfund Digital Access Impact Fund I LP (DAIF) is a pivotal step in our mission to mobilise private capital for sustainable development. This fund not only addresses critical digital infrastructure needs but also empowers communities by enhancing access to essential services. We are excited to offer professional investors a chance to partner with us in driving meaningful change in these rapidly growing markets.”
“These applications need more bandwidth and reliable connectivity, yet most African users rely on limited mobile data. This is where the fund’s portfolio companies come into play. The rise of unlimited home Wi-Fi, especially in countries that the fund targets, presents a major opportunity to drive digital inclusion and economic growth.”
Hanna Loikkanen, Finnfund´s Chief Investment Officer
“The first closing of Finnfund Digital Access Impact Fund I LP shows the power of collaboration between public and private sectors. By mobilizing private capital, we can enhance the efforts to finance sustainable development in partner countries. This fund exemplifies Finland’s commitment to leveraging innovative financial solutions to address critical infrastructure needs and promote inclusive growth. We support initiatives that not only drive economic development but also improve the quality of life for many communities in emerging markets.”
Ville Tavio, Minister for Foreign Trade and Development
