[DIGITAL Business Africa] – A major new financial mechanism has just been launched to support digital transformation in developing countries, particularly in Africa. Finland and the European Union have officially launched a strategic programme aimed at mobilising up to 2 billion euros – equivalent to nearly 1.311 trillion CFA francs – to accelerate digitalisation in Africa, Asia and Latin America. This initiative, known as the EU Finnfund Global Connected Guarantee, is the EU’s largest guarantee programme ever dedicated to the digital sector.
As highlighted on Finnfund’s LinkedIn page, this initiative comes at a time when the EU is seeking to strengthen its presence in global digital infrastructure, in response to the rising influence of Chinese investments (via the Belt and Road Initiative) and American investments (driven by major cloud and tech companies).
According to Finnish Prime Minister Petteri Orpo, “for Finnish companies, this is an excellent and tangible opportunity to enter new markets”, stressing that this financial mechanism is not only an economic instrument but also a strategic lever designed to position Europe as a key partner in Africa’s digital transformation. He made the announcement this week during the EU–AU summit held in Angola.
Launched in partnership with the Finnish impact-investment institution Finnfund, the programme provides 222 million euros in EU guarantees to secure Finnfund’s investments in innovative digital projects. In addition, the EU will allocate 13 million euros to support the preparation and structuring of future investments. The objective is clear: to deploy robust digital infrastructure, support technological innovation, and strengthen access to digital services in regions still facing structural gaps.
This financial tool opens major opportunities for the African continent, where demand for broadband connectivity, data centres, mobile payment infrastructure and artificial intelligence solutions is rapidly growing. For international development partners, it is also a strategic instrument to reduce the global digital divide.
A programme focused on Africa and critical digital infrastructure
According to Finnfund, the mechanism will support major infrastructure projects such as subsea cables, data centres, mobile payment platforms, artificial intelligence solutions, and other high-value digital innovations for public services and enterprises.
“This programme creates pathways for Finnish digital expertise to access new international markets. Bridging the digital divide is not only a significant commercial opportunity but also a way to generate impact. Investments may include subsea cables, data centres, mobile payment solutions, artificial intelligence and other digital innovations,” explains Jaakko Kangasniemi, CEO of Finnfund.
For Africa, this direction is a strong signal, as it targets sectors where infrastructure gaps still slow digital adoption: international backbone, high-speed networks, cloud computing, cybersecurity, digital financial inclusion, and connected public services.
Full alignment with the European Union’s Global Gateway strategy
The EU Finnfund Global Connected Guarantee initiative represents one of Finland’s most significant contributions to the EU’s Global Gateway strategy, which aims to mobilise 300 billion euros to upgrade critical infrastructure in partner countries, with Africa as a priority region.
For Finland, it is a strategic commitment, as underlined by Prime Minister Petteri Orpo:
“Finnfund’s new programme represents Finland’s most significant contribution to the EU’s Global Gateway strategy. It is also a shared recognition of the digital sector’s essential role in sustainable development. For Finnish companies, this is a tangible opportunity to enter new markets.”
The announcement was made during the EU–AU summit in Luanda, Angola, in the presence of Ursula von der Leyen, President of the European Commission.
African companies directly involved
In practice, the programme opens the way for three major dynamics in Africa:
- Broader access to international financing for telecom operators, digital infrastructure providers, tech startups and digital platforms.
- Opportunities for co-development between African and Finnish companies in key sectors: fibre optics, data centres, payment solutions, AI, cybersecurity.
- Acceleration of connectivity and digital transformation, particularly in underserved areas.
Reaction from ICT Media STRATEGIES
Beaugas-Orain DJOYUM, CEO of the strategic intelligence and e-reputation firm ICT Media STRATEGIES, believes this programme is a major strategic lever for the continent:
“This initiative launched by the European Union and Finland represents a major step forward for financing digital transformation across the African continent. By mobilising up to 2 billion euros (around 1.312 trillion CFA francs), the programme opens new prospects for modernising our infrastructure, supporting innovation, and strengthening our digital sovereignty.”
The CEO of the Yaoundé-based firm also outlines key prerequisites:
“It is essential that the access mechanisms, eligibility criteria and participation conditions be presented clearly, accessibly, and in a manner adapted to the realities of African States and our technology companies. Only under these conditions will stakeholders fully seize these opportunities and contribute to building a strong and competitive African digital ecosystem, in collaboration with European partners,” says Beaugas-Orain DJOYUM.
A massive economic impact
According to the World Bank, a 10% increase in digital connectivity can generate up to 2.5% GDP growth. For African countries—often hindered by high internet costs and limited infrastructure—access to new financial instruments is a decisive lever.
The programme doubles the investment volume already mobilised through Africa Connected, launched in 2023 under the EFSD+ framework. Extending the initiative to Asia and Latin America does not diminish Africa’s central position in Finnfund’s and the EU’s priorities.
Towards a new era of EU–Africa digital cooperation
The initiative positions the European Union as one of the key actors in financing Africa’s digital transformation. It comes at a critical moment marked by the rise of AI, growing demand for data centres, increasing cybersecurity challenges, the need for stronger international connectivity, and demographic pressure on digital infrastructure.
With this programme, Africa gains a strong and ambitious mechanism to accelerate its digital shift, attract strategic investments, and strengthen its role in the global digital economy. The initiative will undoubtedly be discussed in greater detail during E-Gov’A (e-Gov Africa Summit, Expo & Awards) 2026, the flagship event on e-government and digital innovation in Africa organised by Smart Click Africa and Digital Business Africa, to be held from 14 to 16 May 2026 in Yaoundé, Cameroon, under the high patronage of the Ministry of Posts and Telecommunications.
By Digital Business Africa
