Nairobi, 31 March 2023 – The Eastern and Southern African Trade and Development Bank Group (TDB Group) has signed a Memorandum of Understanding (MoU) with Finnfund, a Finnish development financier and impact investor, to promote investments that contribute to the UN sustainable Development Goals (SDGs) in key projects in TDB member states.
The MoU, signed by TDB Group President Emeritus and Managing Director Admassu Tadesse and Finnfund Chief Executive Officer Jaakko Kangasniemi, aims to establish and promote a framework for cooperation between TDB Group and Finnfund relating to pursing potential eligible transactions.
The collaboration will focus on projects in key sectors such as agriculture, digital infrastructure and solutions, healthcare, education, SME financing, renewable energy, and other sustainable sector financing, as well as TDB’s various initiatives under the Trade and Development Fund (TDF). The Bank, through this agreement, will endeavor to promote the partnership, sharing opportunities for investment and financing in line with Finnfund’s mission.
Admassu Tadesse, TDB Group President Emeritus and Managing Director said that “TDB Group welcomes this partnership with Finnfund to collaborate in advancing our Member States’ participation in the SDGs. With mutual interests with regards to financing of triple bottom-line impact, we look forward to expanding our work relationship and joint ventures focused on tackling the region’s biggest development challenges. TDB Group continues to place high priority on forming alliances to promote trade between our Member States and Nordic and Baltic nations, expanding our partnerships in the region.”
“This partnership is yet another step for Finnfund in strengthening our presence in Africa through on-ground presence and networks. Last year, we opened a local office in Nairobi and look forward to building strong partnerships with investors, companies and changemakers.” said Jaakko Kangasniemi, Finnfund Chief Executive Officer.
Mary Kamari, TDB Group Corporate Affairs & Investor Relations Executive added “To make a significant and long-lasting impact in the region, TDB frequently engages through MoUs with partners who share our values and core mission. By signing this MoU with Finnfund, we intend to explore alternative financial strategies and collaborate on impact projects to promote business development, creating a sustainable future for the advancement of our region.”
About TDB Group
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a regional development finance institution, with investment grade ratings and assets of USD 8bn. TDB serves 25 member states in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development, through trade finance, project and infrastructure finance and asset management.
TDB is part of TDB Group, which also comprises the Trade and Development Fund (TDF), Eastern and Southern African Trade Advisers Limited (ESATAL), TDB Captive Insurance Company (TCI), and the TDB Academy.
Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.12 billion euros, half of them in Africa. The company has 100 employees based in Helsinki and Nairobi.
Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Unna Lehtipuu, Communications Director