The SANAD Fund for MSME

Investing in financial inclusion in the Middle East and North Africa

Impact contribution
>360,000 indirect jobs supported by MSMEs receiving finance through partner institutions

Impact strategy
Social impact

Investment strategy
Private debt and private equity

Assets under management
Debt Sub-Fund
USD 448.2 mn
Equity Sub-Fund I
USD 22.7 mn
Equity Sub-Fund II
USD 59.2 mn

Website
www.sanad.lu

Impact Report

Initiated in
2010

Initiated by
KfW Development Bank, with Finance in Motion as fund advisor and risk capital from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission

Target regions
Middle East, North and sub-Saharan Africa

SFDR classification
Article 9 fund 

The SANAD Fund for MSME (SANAD) provides private debt and private equity financing to eligible partner institutions in the Middle East, North and sub-Saharan Africa to support growth and employment creation in the region’s micro, small, and medium enterprise (MSME) sector. In addition, SANAD’s Equity Sub-Funds also actively support the formation of greenfield ventures for addressing underserved segments and geographic areas. Its unique financing offer is complemented by a Technical Assistance Facility that delivers tailored non-financial support to embed and amplify the fund’s impact.  

Funding is provided by private and public investors and can be channeled into either the debt or equity sub-funds, depending on investor’s preferences and risk profiles. Both financial vehicles aim to increase employment and income generation through broader access to finance. Financing is extended to qualified and eligible financial institutions which then on-lend to MSMEs. SANAD’s two equity sub-funds acquire minority stakes in impact-driven financial intermediaries in the region.  

 

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SANAD improves financial access to the “missing middle”

Contributing to economic growth and job creation by financing micro, small and medium enterprises

SANAD aims to foster economic development and employment creation in the Middle East and North Africa (MENA), especially among youth, by financing micro, small, and medium enterprises (MSMEs) and low-income households via qualified local lenders. 

By improving financial access to the underbanked “missing middle”, the fund aims to lay the foundation for systemic, long-lasting economic growth and job creation in these regions. 

The financing efforts contribute to the following Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), and Partnership for the Goals (SDG 17). 

Invest in economic development 

Addressing the Gender Finance gap

Since its inception, the SANAD Fund for MSME has been dedicated to addressing the challenges MSMEs face in the Middle East and North Africa region and select countries in sub-Sahara Africa, regarding economic engagement and access to finance. Our 2023 Impact Report highlights how SANAD has over the years worked to empower women by providing them with the keys to access finance. This not only enables them to build successful businesses but also contributes to economic growth and job creation. Learn more in the SANAD Fund for MSME Impact Report 2023:

DISCOVER THE FULL REPORT HERE

 

SANAD’s impact

Number of subloans facilitated to MSMEs and households (2)

560,000

Average amount of subloans (2)

USD 3,410

Volume of subloans enabled for SANAD’s target group (2)

USD 1.9 bn

Share of subloans disbursed to rural and semi-urban end-borrowers

41%

Share of female clients in SANAD partner institutions’ portfolio (4,5)

41%

Share of indirect female jobs supported in MSMEs receiving financing through partner institutions (1,2)

34%

Share of direct female jobs contributed to within SANAD Equity Sub-Funds’ partner institutions

44%

Share of female participants in capacity building projects

49%

Indirect jobs supported in MSMEs receiving financing through partner institutions (1,2)

383,000

Direct jobs supported in investee companies receiving equity financing (2,3)

613

Partners served by SANAD with individual capacity building (2)

205

People benefitted from technical assistance (2)

42,000

Number of active borrowers

95,900

Number of partner institutions (1)

59

Share of outstanding portfolio in local currencies

16%

Share of outstanding subloans in local currencies

93%

Share of young clients in SANAD partner institutions portfolio (4,5)

20%

Committed capital debt sub-fund

USD 462.0 mn

Committed capital equity sub-fund I & II

USD 82.0 mn

Volume of technical assistance projects (1)

USD 27.0 mn

 

1 Figures are modeled by SANAD based on primary reporting and third-party data.
2 Cumulative figure since SANAD‘s inception.
3 Figures have been pro rated according to SANAD‘s respective ownership share.
4 Figures are based on the reporting of a sample of SANAD PIs on clients with individual subloans in their portfolio.
5 Results reflect performance of SANAD Debt Sub-Fund only
* Figures as of: Q2 2023

About SANAD

Fostering economic development and employment creation in MENA

SANAD combines market-based returns with the opportunity to foster employment creation and extend financial inclusion in the MENA region and sub-Saharan Africa.

The fund, advised by Finance in Motion’s highly experienced investment team with regional expertise, has a successful track record and a measurable impact in its efforts to support job creation, enhance youth employment, develop agricultural production, and expand access to affordable housing. 

Investors in the fund can manage their risk exposure through its tranched capital structure, which offers a risk cushion for noteholders provided by subordinated share classes. Private investors have many opportunities to invest, including in notes.

Participate in Middle Eastern and African investment opportunities

Fund details  

How the fund invests

How to invest

Donors and investors

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