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Dear all,
I am proud to share with you our new Annual Report 2023, which collates key information about Finnfund’s financial performance, sustainability, and impact.
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I am pleased to say that, despite the somewhat challenging investment environment, for Finnfund, 2023 was a record year in many ways. Our operations were profitable, and once again we exceeded our targets for impactful investment decisions. Importantly, aligned with dollars and euros, our impact also kept on growing. At the end of the year, Finnfund’s investments, commitments, and investment decisions totalled about EUR 1.23 billion.
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In 2023, we made 35 new investment decisions totalling EUR 256 million. Profit for the year totalled EUR 3,803,242, and all of it will be used to make new investments.
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During the year, we also took major steps forward in developing our operations. More resources were targeted at supporting Ukraine’s recovery as well as increasing cooperation with Finnish businesses. We also started preparing our first Nature and biodiversity statement, which will be ready and published later this year.
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Harnessing clean and efficient modern technologies for the benefit of our clients and the countries they operate in lies at the heart of what we do. Much of our focus today is on bringing the benefits of digital revolution to bear on the lives of the people in the developing world. Since the digital divide lies today mostly within countries, digital infrastructure and digital solutions that serve currently neglected rural areas is today both a development priority and a commercial opportunity.
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Dear partners and friends of Finnfund, I wish to emphasise your role in all this. Mastering the craft of development impact is and must be a team play. Therefore, Finnfund´s goal is to foster sustainable development not only by investing our own resources in impactful projects but also by providing investment opportunities for private investors. I wish to thank all our investees, co-investors, and other partners and friends for great collaboration.
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As you may read in this newsletter, we have also had a good start for this year, and I am glad to say that despite the global political and economic turmoil, the outlook for 2024 remains positive.
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Jaakko Kangasniemi
P.S. We wish you find this quarterly newsletter useful. Should you wish to receive this newsletter in the future but have not yet joined our subscribers, please click here. You can unsubscribe at any time.
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ANNUAL REPORT – Finnfund has published its Annual Report 2023. The report collates key information about Finnfund’s financial performance, sustainability, and impact. The Annual Report also collates the latest information (for 2022) about the impact and sustainability of Finnfund’s investment activities at the portfolio level.
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In 2022, the companies funded, in part, by Finnfund, for example:
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- supported a total of 276,000 jobs, 39% of which were women,
- generated a total of 9,100 gigawatts of energy,
- cooperated with 6.5 million smallholders, 79% of whom were women,
- granted 6 million loans (totalling EUR 10 billion) to micro, small, and medium-sized enterprises, and
- provided digital services and infrastructure to 153 million people.
Finnfund’s investments also sequestered 185,000 tCO₂, which is equivalent to 1,400 tCO₂e per outstanding million. This is the share attributed to Finnfund in accordance with its funding share. The sequestered amount is significantly higher than the similarly attributed emissions of the companies financed by Finnfund. As a result, Finnfund’s investments removed a total of 98,000 tCO₂ more than they emitted. This is also one of the Finnfund’s three strategic goals.
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Investment decisions and disbursements in Q1/2024
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Finnfund’s investment portfolio grew up to EUR 830 million – more focus on digitalisation and mobilisation of private capital
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Finnfund’s investments, commitments, and investment decisions totalled about EUR 1.23 billion at the end of the year. Read more
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OP Finnfund Global Impact Fund I invests in the insurance sector to strengthen resilience in the Philippines
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OP Finnfund Global Impact Fund I, as part of a group of investors, has invested in MAAGAP, a prominent non-life insurer in the Philippines, that provides a comprehensive range of non-life insurance products to both corporate and retail customers. Read more
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This year has started on a positive note. We successfully exited from our biggest investment, Lake Turkana Wind Power, and continued making new investment decisions, writes Olli Sinnemaa, Finnfund's Chief Financial Officer. Read more
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Minister Ville Tavio visits Kentegra’s processing plant in Kenya
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The visit underscores the strong collaboration between the Finnish government, Finnfund, and Kentegra in revitalizing Kenya’s pyrethrum industry. Read more
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Sanergy’s circular economy model helps Kenyan farmers
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Natural fertilizer and animal food with the help of larvae? Better yields and more money to save? Sanergy produces organic fertilizers and animal feed using black soldier fly larvae. The beneficiaries are farmers and animal breeders, as well as nature. Read more
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Fibertime: Bridging the digital divide in South Africa
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“Finnish technology and knowledge will make a big difference in the connectivity in Africa,” said Toni Pellegrino, Managing Director at Nokia South Africa. Read more and watch a video
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VIDEO – Salo Tech Thailand is a joint venture between Solar Finland, Finnfund, and PEA Encom of Thailand. The new facility produces sustainable, high-quality solar panels and targets Thailand and its neighbouring markets.
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In 2023, Africa continued to be Finnfund’s primary investment destination, with 46% of the decisions and 30% of the monetary value. Asia comes second, with approximately 40% in terms of both the number of decisions and monetary value. The remaining share, about 14% of the decisions worth 27% of the monetary value, was allocated to other continents or international projects. Read our Annual Report & learn more
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Would you like to know more?
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Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.23 billion euros, half of them in Africa. The company has 97 employees based in Helsinki and Nairobi. For more information, please visit www.finnfund.fi
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