European investor backs Somalia’s private sector

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Despite decades of conflict and being one of the world’s toughest business environments, Somalia has managed to maintain a growing private sector that generates an estimated more than 90% of the country’s GDP. In many cases, the private sector has filled roles typically held by public institutions, such as the provision of financial services, security and education.

Swedfund, a Swedish government-supported organisation that invests in businesses and projects in developing countries, recently announced its plan to back SMEs in Somalia. Swedfund has committed $5 million to the Nordic Horn of Africa Opportunities Fund, an investment vehicle targeting Somali SMEs, managed by fund manager Shuraako. The fund is among the first commercial investment funds in Somalia, with $25 million in capital under management. This Somali fund seeks to provide loans to businesses with revenues of around or less than $1 million.

Despite decades of conflict and being one of the world’s toughest business environments, Somalia has managed to maintain a growing private sector that generates an estimated more than 90% of the country’s GDP. In many cases, the private sector has filled roles typically held by public institutions, such as the provision of financial services, security and education.

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Qaranimo Online

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