Access to finance remains a major challenge for small and medium-sized enterprises (SMEs) in Somalia, where perceived risk limits private investment.
Nordic Horn of Africa Opportunities Fund (NHAOF) is an impact fund focusing on small and medium-sized enterprises (SMEs) in Somaliland, Puntland and South Central.
The fund was established by Impact Fund Denmark together with Norfund, Swedfund and Arsenault Family Foundation in 2018, and is managed by Shuraako Capital. The fund provides Sharia-compliant loans to SMEs across Somaliland, Puntland and South Central Somalia, using a blended finance structure to unlock investment in fragile markets.
Public partners, including Impact Fund Denmark, the European Union and the Danish Ministry of Foreign Affairs, provide first-loss capital that absorbs risk and protects commercial investors. This layered approach helps crowd in private capital that would otherwise not reach Somali businesses.
Through this structure, NHAOF has disbursed more than 100 loans, strengthening local enterprises and demonstrating how blended finance can catalyse private investment in high-risk contexts.
This investment was made possible with funding from the European Union.
