In the race to connect the unconnected, Africa has often been left at the margins of global capital flows. But that narrative is starting to shift. Finnish impact investor Finnfund has announced the first close of its Digital Access Impact Fund I LP (DAIF), raising €80 million to invest in digital infrastructure across Africa, Asia, and Latin America.
The fund is designed to close the digital divide while promoting financial and gender inclusion — and for emerging markets like South Africa, Nigeria, and Kenya, this capital could help power a new wave of affordable internet access.
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Capital for Connectivity
At its core, the fund targets the stubborn “coverage gap” — the millions of people in low-income communities who remain offline due to limited infrastructure and prohibitive costs. From telecom towers and broadband expansion to scalable digital solutions, DAIF will focus on the infrastructure needed to unlock digital economies.
“These applications need more bandwidth and reliable connectivity, yet most African users rely on limited mobile data,” said Hanna Loikkanen, Finnfund’s Chief Investment Officer. “The rise of unlimited home Wi-Fi, especially in countries the fund targets, presents a major opportunity to drive digital inclusion and economic growth.”
Why It Matters
In Africa, where internet penetration still lags behind global averages, better connectivity directly translates into opportunity. Digital access powers everything from remote work and e-commerce to education, fintech, and healthcare services.
The fund also integrates child-lens investing, developed with UNICEF’s Innovative Finance Hub, to ensure investments deliver positive outcomes for children while minimising harm. This signals a shift from infrastructure-only plays toward a more holistic view of inclusion.
Public-Private Momentum
Finnfund’s approach is strengthened by blended finance mechanisms, with risk-sharing facilities and technical assistance supported by the European Commission’s European Fund for Sustainable Development. The Finnish government, through the Ministry for Foreign Affairs, is also backing the fund as an anchor investor.
“The first closing of DAIF shows the power of collaboration between public and private sectors,” said Ville Tavio, Finland’s Minister for Foreign Trade and Development. “By mobilising private capital, we can enhance efforts to finance sustainable development in partner countries.”
The Bigger Picture
Finnfund has built credibility through four decades of investments in clean energy, forestry, agriculture, and financial institutions. Its €1.3 billion active portfolio already stretches across more than 20 countries. With DAIF, the focus sharpens on connectivity as a core driver of inclusion.
Initial investments, expected later in 2025, will target projects bringing unlimited high-speed internet to low-income households in Latin America, before expanding further across Africa and Asia.
As the Global South continues to urbanise and digitise, funds like DAIF may well become a template for how development capital converges with commercial opportunity — bridging gaps while shaping a more inclusive digital economy.
