Overview
Nordic Impact Funds (NIF) is an impact-focused fund manager with offices in Uganda and Denmark. NIF is raising a USD 50M evergreen fund plus a USD 5M impact-linked financing and technical assistance facility (ILF/TA) to deploy equity, equity-like capital (e.g., convertible debt) and impact-linked finance into agri-SMEs in Kenya, Uganda, Tanzania, Ethiopia, Rwanda and Malawi. NIF’s commercial fund is an evergreen vehicle capitalized by investments from private and institutional investors. At the same time, the ILF/TA facility will enhance investors’ impact with regard to adaptation, resilience, gender, and low-income populations.
Problem
Building climate resilience and adaptation capacity among East Africa’s vulnerable populations is an increasingly urgent priority. The region faces more frequent and severe climate impacts — including prolonged droughts, intense flooding, and erratic weather patterns — that threaten agricultural productivity and, consequently, the livelihoods and food security of millions.
Small and medium-sized enterprises in East Africa that play a critical role in advancing climate resilience and food security for underserved communities face persistent barriers to growth, particularly due to limited access to investment capital and tailored support. As a result, their ability to scale climate-smart solutions, boost agricultural productivity, and enhance livelihoods for vulnerable groups—particularly women, low-income households, and smallholder farmers—remains largely untapped.
Solution
To address persistent financing and capacity gaps for agri-SMEs in East Africa, NIF has developed a two-part vehicle: a USD 50 million evergreen fund and a complementary USD 5 million Impact-Linked Finance and Technical Assistance Facility.
The Fund provides equity, equity-like capital, and impact-linked finance to SMEs across Kenya, Uganda, Tanzania, Ethiopia, Malawi, and Rwanda—targeting climate-smart agribusinesses, food systems, and digital and financial inclusion. The Facility enhances the Fund’s impact thesis by linking financial incentives, such as interest rate discounts and valuation premiums, to positive gender and climate adaptation outcomes. It also provides tailored technical assistance through value chain analysis, impact measurement, business model optimization, certifications, and investor matchmaking.
By partnering with World Food Program’s IGNITE Innovation Hub, NIF combines investment capital with robust operational support to de-risk investments and help locally founded SMEs scale their reach. Together, the Fund and Facility aim to deliver strong financial returns while catalyzing inclusive, climate-resilient growth across the region.
CC Facility Support
The CC Facility will enable NIF to scale its support for locally anchored SMEs delivering climate adaptation solutions to underserved populations. The CC Facility will help structure the Impact-Linked Finance mechanism and support the vehicle in enhancing its Impact Measurement and Management framework. Additionally, the CC Facility will strengthen the climate adaptation thesis and support NIF in embedding sector-specific gender-responsive measures within its investment and portfolio management processes.
