Government proposes act on development policy investments

The proposal implements the objectives set out in the Government Programme to strengthen the role of the private sector in development policy and attract more private capital for investments that advance sustainable development in developing countries. The proposal is one of the measures set out in the Report on International Economic Relations and Development Cooperation (2024) to achieve these objectives. “The financing required to achieve sustainable development substantially exceeds the public funds available. For this reason, we need a range of instruments to attract private capital to finance investments, business activity and job creation in developing countries,” says Minister for Foreign Trade and Development Ville Tavio. The proposed act aims to promote the use of development policy investments as an instrument of Finland's foreign and development policy, increase the transparency and predictability of activities and prevent distortions of competition. The act would also clarify the powers of the Ministry for Foreign Affairs and promote the efficient use of central government funds. “While development policy investments have formed part of Finland's development coopera...