Finnfund Opens Its First Africa Office In Nairobi, Kenya

The Finnish development financier and impact investor Finnfund will open its first office in Africa in Nairobi, Kenya, in May 2022.

The move to open the office in Nairobi follows its new strategy that places a strong emphasis on Africa, with half of the company’s upcoming investments in Africa. Local presence is seen as a key factor for growing the volume of investments in the region.

The company seeks to build a sustainable future and generate lasting impact by investing in businesses in developing countries that solve global development challenges. The opening of the Nairobi office will strengthen the updated strategic goals.

“Africa is the place to be for European development financiers. It is a continent where jobs and investments are very much needed, and at the same time, it is the new frontier, where opportunities are abound, and life is getting better for millions of people. Some of our best and most impactful investments are in East Africa, and we intend to make many more such investments in the coming years,” says Jaakko Kangasniemi, the CEO of Finnfund.

At the start, 2-3 investment professionals will be deployed in the Nairobi office.

“The regional office will play a central role in strengthening our position in the East African market. The location supports and streamlines the follow-up of the regional market and existing projects and collaboration with co-investors,” says the head of the Nairobi office Johanna Raehalme.

Finnfund invests 200-250 million euros in 20-30 companies throughout developing countries each year. It places special emphasis on sectors that are critical to sustainable development, namely: renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today, the investments and commitments total about 1.070 billion euros and currently has 90 employees.

Often ignored, more investors are looking to put their funds into African startups in recent years. According to Briter Bridges Report, African startups raised $4.9 billion in total estimated funding in 2021.