The Norwegian investment fund for developing countries (Norfund) has set up a $10 million kitty to support small businesses in Somalia.
Norfund, together with the Danish investment fund for developing countries (IFU) and Shuraako, an arm of One Earth Future (OEF), have set up the Nordic Horn of Africa Opportunities Fund to help small and medium-sized enterprises.
Dubbed Murabaha, the Sharia-compliant investment instrument can offer financing of up to $25,000.
The capital is expected to fund energy, fisheries, agriculture, light manufacturing and hospitality sectors across Somalia to help entrepreneurs to build sustainable businesses and contribute to the economy and create employment.
“The fund focuses on post-conflict and fragile states by building sustainable societies,” said Norfund chief executive officer Kjell Roland.
Norfund, being the main investor, has committed $3 million, IFU $2 million and Arsenault Family Foundation $2 million.
The Norwegian Ministry of Foreign Affairs gave $3 million for first loss component.
Other partners are the Development Fund (Utviklingsfondet) a non-governmental organisation active in Somalia and a network of Nordic Somali diaspora.
Source: The East African Online