Internationalisation funding

The Ministry for Foreign Affairs provides funding for Finnish companies for their sustainable development partnerships and business opportunities in emerging markets. The Ministry also helps companies to utilise international development funding. This page presents financial instruments provided by the Ministry for Foreign Affairs and a range of international development funding and procurements that Finnish companies can make use of at different stages of internationalisation.

Brochure: Support for different phases of sustainable business in developing countries (PDF)

Finnish financial instruments

Developing countries present vast opportunities for Finnish companies. The Ministry for Foreign Affairs provides funding for Finnish companies for sustainable partnerships and business opportunities in developing countries. Such funding is conditional on adherence to responsible business conduct and on promoting sustainable development in the target country.

Finnpartnership promotes business between Finland and developing markets, with the creation of positive development impacts in partner countries at its core. The programme provides Finnish companies and organisations with funding, advisory services and contacts. Finnpartnership’s Business partnership support is a financial grant for the early stages of business activities, for the development of existing operations, and for the further development of solutions in cooperation with a local partner. The grant amount ranges from 15 000 to 400 000 euro. 

Finnfund invests in responsible companies operating in developing countries. Its investment loans and capital investments typically range from EUR 2 million to EUR 10 million and are awarded to companies already showing strong proof of profitable business activities designed to promote sustainable development. Finnfund invests especially in the fields of renewable energy generation, infrastructure, finance, sustainable forestry, agriculture and digital solutions.

The Public Sector Investment Facility (PIF) for developing countries. The PIF can be used for funding transactions when the customer of a Finnish-based company is a public sector operator, such as a public enterprise, a government agency or a ministry. In practice the PIF means that the interest on a commercial loan taken out by the customer for procurement and a part of the customer’s other expenses will be funded out of Finland’s development cooperation appropriations. Companies will thus be better placed to secure contracts typically valued between EUR 10–30 million.

The FUIF instrument (Finland‒Ukraine Investment Facility) is designed to support public sector investments in Ukraine in line with the priorities for the country’s reconstruction and Finland’s national plan for the reconstruction of Ukraine. Such investment projects must make use of Finnish products and services and Finnish expertise and technology.

Internationalisation funding is also available from the following Team Finland organisations:

Finnvera offers companies loans, loan guarantees and export guarantees, thus complementing the commercial financial market. By providing funding arrangements to cover the risks associated with export financing, it boosts the competitiveness of Finnish companies on the export market. This is particularly important when exports will be directed at emerging markets. Finnvera’s guarantees help manage the political or commercial risks associated with export financing.

Business Finland is a public-sector operator with a focus on advancing innovation-driven and sustainable growth. It provides funding, advisory services on growth and internationalisation and facilitates networking for Finnish companies and research organisations seeking modernisation and expansion.

International procurements

Development finance institutions (DFIs), such as the UN, the World Bank, regional development banks and the EU, provide funding for private and public sector projects in the developing countries by an estimated 150 billion each year. Their grant, loan or investment decisions are based on multiannual cooperation programmes, which are implemented in sectors jointly identified by the financier and the recipient.

A major part of the funding is used for procuring various commodities, equipment and services through competitive tendering. Most of these procurements are put out to tender by the state or company that has received funding from the development bank. The emerging markets need innovative and sustainable solutions that ideally have already been tested in practice and will help developing countries reach the global Sustainable Development Goals (SDGs). There is demand for reliable contractors, equipment suppliers and providers of digital and innovative services and platforms and planning and consultancy services.

The Ministry for Foreign Affairs manages the collaboration with international organisations and shares information about their procurement processes and contact persons. Finland's missions abroad provide general information and contact details of key persons in their host-country organisations and arrange for companies to meet with public authorities.

For more information on international procurements, please contact the Department for Development Policy at keo-01(at)gov.fi.

Read more: A Guide on acquisitions by development financiers – a handbook for companies on a EUR 150 billion market (PDF, 4 MB) (in Finnish)

Development banks

Finland is a member of a number of international development finance institutions, including the World Bank, the Asian Development Bank, the African Development Bank and the Inter-American Development Bank. They are important infrastructure financiers in emerging markets.

The private-sector programmes and investment companies, such as IFC and IDB Invest, of these development banks finance private-sector investments and business activities. They also have programmes that finance innovations and early-stage companies (including IDB Lab, ADB Ventures).

Investments in emerging markets are also funded by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

The Nordic Development Fund (NDF) and the Nordic Environment Finance Corporation (NEFCO), both based in Helsinki, provide grants and credits to companies. Finnish companies have a home advantage, for the offices of Nordic and European finance institutions are located next to one another, making it easier to build connections. Finland regularly finances the activities of development finance institutions.

The Ministry for Foreign Affairs and its missions abroad can help open doors to these finance institutions. Finland often has its representatives at the offices of the boards of investment banks. The Finnish Embassy in Washington DC provides support for access to funding from the World Bank Group and the Inter-American Development Bank (IDB) Group.

Global Gateway, an EU project

Global Gateway is the European Union’s initiative, which aims to improve economic and social development in developing countries by promoting smart, sustainable and secure solutions in the fields of digitalisation, energy and transport and by strengthening the health, education and research sectors. Various funding options will be considered before publishing a call for tenders to select a party to carry out a project based on the needs of the partner country.

The funding channels available in Finland include Finnfund, Finnvera and Finnpartnership. Among the supranational finance providers are the European Investment Bank (IEB) and the European Bank for Reconstruction and Development (EBRD). Finland primarily promotes the participation of Finnish companies in Global Gateway joint projects that include digitalisation, education, climate or energy solutions.