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Writer's pictureJuliet MacDowell

Understanding Finnish Development Aid

Finnida (Finnish International Development Agency) is preparing to release its call for proposals in October, signaling an important period for international NGOs (INGOs) looking to secure funding for development projects. While many INGO professionals are familiar with the likes of Swedish aid (Sida), Danish aid (Danida), or Norwegian aid (NORAD), fewer may be aware of the significant role that Finnida plays in the global development landscape. Despite this, Finnida stands out as a substantial institutional donor, with Finland’s total Official Development Assistance (ODA) in 2023 amounting to EUR 1,452 million (approximately $1.57 billion USD), representing 0.52% of its Gross National Income (GNI). This positions Finland as the 8th largest donor among Development Assistance Committee (DAC) countries.

With a 2024 budget set at EUR 1,209 million (approximately $1.31 billion USD) for development cooperation, representing 0.42% of Finland’s GNI, Finnida’s upcoming call for proposals offers crucial opportunities for INGOs to engage with Finnish aid initiatives. This article provides a detailed overview of Finnida's priorities, strategies, geographical focus, and key partnerships, offering valuable insights for business development and fundraising professionals working within the INGO sector.


Finnida's Priorities and Strategy

Finnish development cooperation is deeply rooted in its broader foreign and security policy, emphasizing the reduction of poverty and inequality, the promotion of human rights, and the advancement of sustainable development. The following key elements define Finland’s strategic approach to development cooperation:




Priority Areas

Finland’s development policy focuses on five main priority areas:

  1. Rights of Women and Girls: Finland champions gender equality and the empowerment of women and girls in all its development initiatives. This includes programs aimed at enhancing women’s access to education, health services, and economic opportunities.

  2. Quality Education: Finnish aid supports the improvement of educational systems in partner countries, focusing on access to quality education for all, particularly in marginalized communities.

  3. Sustainable Economies and Decent Work: Finland promotes economic development through initiatives that foster sustainable livelihoods, entrepreneurship, and decent working conditions.

  4. Peaceful and Democratic Societies: Finnish development cooperation contributes to the establishment of peaceful, democratic societies by supporting governance reforms, conflict resolution, and the protection of human rights.

  5. Climate Change, Biodiversity, and Sustainable Management of Natural Resources: Finland is committed to addressing climate change and promoting environmental sustainability through projects that protect biodiversity and ensure the sustainable use of natural resources.


Private Sector Development

Finland emphasizes the crucial role of the private sector in achieving sustainable development outcomes. Initiatives such as Finnpartnership, Finnfund, and the Energy and Environment Partnership (EEP) are key components of this strategy, providing financial support, matchmaking services, and advisory services to Finnish enterprises engaged in development projects. These initiatives aim to promote responsible business practices, innovation, and local production in developing countries, ultimately contributing to poverty eradication and reduced inequalities.

Human Rights-Based Approach

A human rights-based approach is central to Finland’s development cooperation, with a strong focus on gender equality, disability inclusion, and the rights of the most vulnerable groups. Finland’s policies prioritize the protection and promotion of human rights in all areas of its development work, ensuring that aid is directed towards those most in need and that it supports inclusive development.

Domestic Resource Mobilization

Recognizing the importance of sustainable financing, Finland supports developing countries in strengthening their tax systems and expanding their tax bases. By collaborating with international organizations like the African Tax Administration Forum (ATAF), Finland helps partner countries increase national public funding, thereby reducing their dependency on external aid and promoting long-term financial independence.

Commitment to Sustainable Development Goals (SDGs)

Finland is deeply committed to the UN 2030 Agenda for Sustainable Development, integrating these goals into its development cooperation efforts. This commitment is reflected in Finland’s focus on promoting economic growth, decent work, sustainable industrialization, and the reduction of inequalities.

Bilateral and Multilateral Cooperation

Finland’s development cooperation is characterized by long-term partnerships with nine key partner countries, primarily in sub-Saharan Africa and Asia. Additionally, Finland actively participates in multilateral organizations to influence international policies and practices. Approximately half of Finland’s ODA is channeled through multilateral organizations, demonstrating Finland’s commitment to global cooperation.


Geographical Focus

Finland's development cooperation is strategically concentrated on regions where it can have the greatest influence, with a particular emphasis on sub-Saharan Africa and Asia. The following regions and countries are given priority:


Sub-Saharan Africa

Finland’s primary focus in Africa includes long-term partnerships with several least developed countries (LDCs) and fragile states, such as:

  • Ethiopia: Focused on education, water services, and rural development.

  • Kenya: Emphasizing governance, human rights, and economic development.

  • Mozambique: Supporting education, healthcare, and agriculture.

  • Somalia: Concentrating on peacebuilding, governance, and basic services.

  • Tanzania: Focusing on education, gender equality, and sustainable livelihoods.


Asia

In Asia, Finland’s aid is concentrated in countries facing significant challenges due to conflict, poverty, and political instability:

  • Afghanistan: Focused on education, women’s rights, and governance.

  • Myanmar: Supporting peacebuilding, human rights, and education.

  • Nepal: Emphasizing education, environmental sustainability, and economic development.


Middle East, North Africa, and Central Asia

In addition to its focus on Africa and Asia, Finland provides support to countries in the Middle East, North Africa, and Central Asia, addressing issues related to conflict, displacement, and economic instability.


Building Partnerships with Finland's Development Ecosystem

For INGOs, building strategic partnerships with Finnish development partners is crucial for accessing funding and achieving greater impact. Finland’s development ecosystem includes a wide range of NGOs, foundations, and other organizations working across various sectors. Collaborating with these organizations can provide INGOs with valuable resources, expertise, and access to Finnida’s funding opportunities. Key Finnish development partners include:


  • Abilis Foundation

  • CMI – Martti Ahtisaari Peace Foundation

  • Deaconess Foundation

  • Disability Partnership Finland

  • Finn Church Aid

  • Finnish Development NGOs – Fingo

  • Finnish Evangelical Lutheran Mission (FELM)

  • Finnish Foundation for Media and Development (Vikes)

  • Finnish Red Cross

  • Finnish Refugee Council

  • Family Federation of Finland

  • Fairtrade Finland

  • International Solidarity Foundation

  • KIOS Foundation

  • Operation a Day’s Work Finland (ODW Finland)

  • Plan International Finland

  • Save the Children Finland

  • Siemenpuu Foundation

  • Trade Union Solidarity Centre Finland (SASK)

  • WWF Finland

  • World Vision Finland

  • YMCA Finland


These organizations offer a wealth of experience and resources, making them valuable partners for INGOs seeking to engage with Finnish development aid.


Staying Up-to-Date on Funding Opportunities with Finnida

In conclusion, Finland is a leading nation in international development, with a strong commitment to sustainable development and poverty reduction. Organizations like Finnida and FORMIN (Ministry for Foreign Affairs of Finland) play crucial roles in implementing Finland’s development policy and providing funding for NGOs and civil society organizations. Business development professionals in NGOs can stay informed about these policies and trends by visiting the websites of Finnida and FORMIN and by exploring the work of Finland’s development partners. It is also important to keep an eye on Finnida’s social media channels, such as Twitter and Facebook, for the latest information.

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