Finnfund Pioneers Digital Inclusion in Emerging Markets Through Fibre Networks
Finland’s development financier, Finnfund, is championing a targeted strategy to bridge the digital divide in emerging economies, with fibre-optic networks at the core of its innovative approach. According to Kuutti Kilpeläinen, Senior Investment Manager and Head of Digital Infrastructure at Finnfund, fibre represents the most effective pathway to connect underserved populations, combining impactful development with sound investment.
“In emerging markets, we see the fastest economic growth, the fastest population growth, and also the fastest growth in data. The need to build new networks is enormous,” states Kilpeläinen. Finnfund’s mission for 2026 is explicitly to narrow the digital gap by investing in connections for people, businesses, and governments. This focus is part of a broader impact investing strategy, where generating positive social outcomes is as crucial as financial returns, embedding the firm firmly within the deep end of ESG (Environmental, Social, and Governance) principles.
The tangible impact of this strategy is evident in specific investments. In 2025, Finnfund invested in the Mexican company Netwey, which builds regional fibre networks in areas with poor fixed-line connectivity. By offering affordable, fast, and unlimited internet via a simple weekly or monthly subscription—eliminating costly connection fees and long-term contracts—Netwey replaces expensive and limited mobile data, directly increasing economic and digital inclusion.
Beyond physical infrastructure, Finnfund’s innovative approach spans the entire digital value chain, including data centres, mobile towers, and fintech solutions. Recognising that data must be close to users for speed, the firm highlights the coming need for gigawatt-scale data centres in regions like Africa to support growing AI adoption. In digital finance, an investment in Africa’s Wave Mobile Money provides a service used daily by over half the populations in Senegal and Côte d’Ivoire, at a cost 70% cheaper than traditional alternatives, thereby enhancing financial security and participation.
To amplify its reach, Finnfund is strategically catalysing private capital. Its recently launched Finnfund Digital Access Impact Fund I, targeting €150 million, operates like a traditional private equity fund and is the first fund managed directly by Finnfund. This vehicle allows institutional investors to participate in impactful digital infrastructure projects in emerging markets, leveraging Finnfund’s expertise as a minority growth-stage investor that typically commits €5-20 million per company.
Annually investing €200-250 million, with a goal to allocate 40% to digital businesses, Finnfund has made digital infrastructure its most strategically significant sector since launching the strategy in 2021. By partnering with local funds and development banks, Finnfund ensures deep market understanding and shared risk, meticulously selecting companies it follows for one to two years before investment.
Through this multifaceted model—prioritising fibre as critical infrastructure, investing across the digital ecosystem, and mobilising private capital—Finnfund demonstrates an innovative, scalable blueprint for using finance to build a more inclusive and connected global digital future.
