Finnfund impact invests for women empowerment

Finnfund, a government-owned development financier, has invested recently in companies in developing countries where half of the management are women.

The key aim is not only profitability but also to promote equality, said the Ministry for Foreign Affairs in a press release on Wednesday.

Impact investment has become an increasingly important form of investment in the world and is growing at a quick pace. Finnfund’s impact investments are one channel for Finland’s development cooperation appropriations.

Improving the position of girls and women is a priority in Finland’s development policy and also one of the key goals of Finnfund’s investments.

In 2019, the Ministry for Foreign Affairs granted Finnfund a EUR 105 million loan as a development policy investment to be invested in projects that promote equality in 2019–2021.

During one and a half years, Finnfund has already tied more than EUR 120 million to targets that strengthen the financial independence of women in developing countries or provide important services for girls and women.

Minister for Development Cooperation and Foreign Trade Ville Skinnari considers investment in equality and companies in the developing countries important.

“Investing in girls and women is always wise and useful, because gender equality is the precondition for sustainable development in the society. It is especially important now as the coronavirus pandemic especially hits women-dominated sectors in the developing countries. Promoting gender equality through business investments is also an internationally growing phenomenon, and Finland is strongly involved in it,” Skinnari said.

”Finnfund assesses each of its investments before making a decision, taking into account whether the investment can be expected to promote gender equality,” said Finnfund’s Development Impact Team Head. Kaisa Alavuotunki.