The Nordic Horn of Africa Opportunities Fund
The $8.0 million (at first close) Nordic Horn of Africa Opportunities Fund (“Nordic Fund”), is an impact fund targeting Somali small and medium sized enterprises (“SMEs”). The Fund will deploy risk capital to finance SMEs with Sharia compliant loans and other self-liquidating structures with a focus on job creation and empowerment of female entrepreneurs.
The Nordic Fund seeks to attain development effects while generating a positive return on capital. The Nordic Fund will add risk capital to the Somali region, foster entrepreneurship, and create jobs. By supporting a responsible private sector and creating a sustainable business environment, the Nordic Fund will foster prosperity and stability in the region.
The Nordic Fund will consider SMEs located in the Somali region (including Somaliland, Puntland and South Central Somalia). Companies must have at least a three (3) year operating track record and be involved in a business sector that is not under embargo as published and amended from time to time by the United Nations or European Union.
Projects ranging from USD $50,000 to $750,000. Owners must contribute a minimum of 30% of the total project value.
Applicants approved for financing will be issued funds under a sharia compliant debt finance agreement.
Successful applicants will receive a financing term for up to five years (60 months).
Applicants are required to pledge collateral. Pledged collateral will be at a minimum of 1.5-2.5x extended capital (depending on the applicant).