Annual Report 2023

Finnfund’s Annual Report 2023 collates key information about our financial performance, sustainability, and impact.

Read about Finnfund’s year in our Annual Report.

Portfolio 831 million euros

New investment decisons 256 million euros

Of new investment decisions 95% targeted countries in three lowest income categories (€, OECD, DAC)

Finnfund's portfolio removed 98,000 t CO2-ekv. more than emitted (2022)

Finnfund investees generated 108,000 direct jobs (2022)

Finnfund investees generated 9,100 GWH of clean energy (2022)

Chief Executive Officer’s review: Turning the corner

“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,” says Jaakko Kangasniemi, Finnfund’s Managing Director and CEO.

“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,” Kangasniemi concludes.

Our investments in 2023

Finnfund’s investment portfolio grew from 810 million euros to 830 million euros. At the end of the year, the company’s investments, commitments and investment decisions totalled about 1.23 billion euros.

Finnfund continued active investing in developing countries. In 2023, Finnfund made a total of 35 investment decisions, totalling 256 million euros.

As in the preceding year, the majority of Finnfund’s new investment decisions were allocated to projects with excellent development impact, for example, in terms of reducing poverty, combating climate change, and improving the position of women and girls.

Africa remained Finnfund’s primary investment destination, accounting for 46 per cent of volume and 30 per cent of decisions.

Profit for the year totalled 3,803,242 euros, and all of it will be used to make new investments.

Finnish technology and knowledge will make a big difference to connectivity in Africa

Finnfund has invested 2 million euros in the Fibertime Group, a company offering world-class internet and connectivity to people in poor communities in South Africa. At the heart of the innovation are both the affordable pricing model, pay-as-you-go, and the technology used.

The Finnish company Nokia is providing both fibre access nodes for the fibre exchange and fibre modems to create a WiFi network across entire townships. Digital inclusion is a shared value for Nokia, Finnfund, and Fibertime.  The journey has been a valuable learning process for all partners.

“It is crucial to learn how people act and spend money, to make sure that our product will adapt to the local environment,” says Toni Pellegrino, Managing Director of Nokia South Africa.

Examples of our investments in 2023

Salo Tech Thailandin työntekijöitä töissä

Solar panel production with Finnish know-how in Thailand

Solar Finland, from Salo in Finland, is a pioneer in solar energy. The first solar energy systems supplied by the company were commissioned more than 40 years ago, and many of these systems are still operational. These sustainable, high-quality solar panels are now being produced at Salo Tech Thailand. The new facility targets Thailand and its neighbouring markets, which is why the panels are being designed with the local conditions as a starting point. The production capacity is set to 100 MW per year in the first phase.

This is the moment when Ukrainians need the rest of the world’s help the most

In April 2023, Finnfund committed USD 15 million to Horizon Capital Growth Fund IV, the latest fund managed by Horizon Capital. The fund invests in Ukrainian companies, particularly in the technology and export industries “The role of Finnfund and other development financiers is very important now that commercial investors hesitate,” says Jaakko Kangasniemi, Finnfund’s managing director and CEO.

Making formal finance more accessible to women in India

In June 2023, Finnfund invested USD 10 million in SATYA MicroCapital Ltd, a Delhi-based company that provides affordable microcredit to women from low-income households across rural areas of India. Many women in India lack access to formal finance. According to the World Bank, only 10 per cent have borrowed from a formal financial institution. SATYA reaches out to rural women in their home villages and helps them access small finance. Clients have been able to increase their annual income by 11 per cent after taking a loan from SATYA.

Hewatele brings affordable medical liquid oxygen to healthcare facilities in East Africa

In Kenya, demand for medical oxygen has increased significantly. Kenyan hospitals frequently experience unpredictable deliveries, higher prices, and expensive transportation costs for medical oxygen. Due to the high production costs, fragmented delivery, and storage options, medicinal oxygen is typically eight to ten times more expensive in Sub-Saharan Africa than in Europe and North America. Improving access to oxygen and administering oxygen can reduce child mortality from pneumonia by 35% and lessen foetal distress when given to pregnant women, thus saving lives.

Annual Report 2023

Download the Annual Report in pdf format.