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The European Union has joined forces with Finnish impact investor Finnfund to launch the “EU Finnfund Global Connected Guarantee,” the largest EU guarantee program dedicated to the digital sector.
The initiative is set to mobilize up to €2 billion for critical digitalization projects across Africa, Asia, and Latin America.
Under the agreement, the EU will provide guarantees worth €222 million for Finnfund’s investments, supplemented by an additional €13 million for investment preparation.
This strategic finance package is aimed squarely at bridging the digital divide, supporting the EU’s Global Gateway strategy, and accelerating GDP growth – where a 10% increase in digital connectivity is linked to a 2.5% rise in GDP, according to the World Bank.
The program targets investments in core digital infrastructure, including subsea cables, data centres, mobile payment solutions, and AI innovations.
Finnish Prime Minister Petteri Orpo, who confirmed the program at the European Union-African Union summit in Luanda, stated:
“This programme represents Finland’s most significant contribution to the EU’s Global Gateway strategy. For Finnish companies, this is an excellent and tangible opportunity to enter new markets.”
The initiative offers Finnish businesses pathways to supply technology and services to developing markets, with investments also available directly to Finnish-owned companies operating in these regions.
Jaakko Kangasniemi, CEO of Finnfund, emphasized the dual benefit:
“This programme creates pathways for Finnish digital expertise to access new international markets. Bridging the digital divide is not only a significant commercial opportunity but also a way to generate impact.”
The new global focus doubles the total investment volume of Finnfund’s previous Africa Connected program.
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