Finnish development financier and impact investor Finnfund says it has closed a US$5million equity investment with Netwey, a Mexican internet service provider (ISP), to expand its fibre optic network and improve internet accessibility.
This investment, says Finnfund, aims to bring unlimited high-speed internet to more low-income households, bridging the digital divide. The digital infrastructure and solutions sector is one of Finnfund’s key strategic priorities and its most rapidly growing sector, although this is the group’s first digital sector investment in Latin America.
The investment is part of a US$10 million equity round in collaboration with IDB Invest, a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector.
As Finnfund explains, more than 21 million Mexican households in underserved areas lack adequate internet access, with many in lower socioeconomic tiers. It agrees that significant investments have been made in fibre optic infrastructure but says that these investments have been largely concentrated in high-income urban centres, leaving a significant part of the country underserved.
The aim, therefore, is to broaden Netwey’s fibre optic network, enabling more low-income households to access high-speed internet. Increasing digital connectivity, Finnfund says, supports economic growth, facilitates inclusive access to critical services, and provides possibilities for small businesses to connect with global value chains.
