The time to invest in Somalia is now, said the Prime Minister of Somalia, Mr Khaire, at the launch of the "Nordic Horn of Africa Opportunities fund". Norfund, Shuraako and IFU have launched a new - and first in its kind - fund for investing in small and medium sized companies in Somalia.
Norfund has, together with Shuraako and the Danish DFI, IFU, established a USD 10 million fund for supporting small and medium sized companies in Somalia. The Nordic Horn of Africa Opportunities Fund is among the first commercial investment funds for Somalia.
Somalia has a lot of opportunities, and investments like this Fund are important for building peace and prosperity in Somalia.
Prime Minister, Mr. Khaire
Norfund is the initiator and anchor investor of the Fund. Norfund has committed an investment of up to USD 5 million, whereof the Norwegian Ministry of Foreign Affairs has supported a first loss component of USD 3 million.
The business environment in Somalia is one of the most challenging in the world. Access to capital is constrained, electricity is not generally available, minority protection of investors is problematic and parts of the country have major security and terrorist challenges. In this context, the Fund will fill a gap by funding SMEs that have no other sources of capital. The fund is the first of its kind and will demonstrate the potential to catalyze further capital into Somalia.
This is an important investment and proofs the entrepreneural spirit of Norfund. With Shuraako as a partner, we have a local team on the ground that works already. I believe that fund will have significant development impact in Somalia and also receive as small, yet positive financial return.
Kjell Roland, Norfund CEO
Now is the time to invest in Somalia, said Prime Minister Khaire. He said that in three to five years it will already be late. He explained that the Somali people are business minded and that the government wants to support the private sector as this is the backbone of the society.
Norfund has managed to be bold in many areas and it pays off, said Minister Astrup at the launch of the New Fund. Any country need a profitable private sector and in order to achieve this, you need investors. This fund is therefore a very important start for Somalia, said Astrup.