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


Impact Report

Initiated in

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.  



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 

Strengthening Resilience for MSMEs in the Middle East and North Africa

Since its inception, the SANAD Fund for MSME has worked towards supporting entrepreneurs in the Middle East and North Africa under varying economic conditions. Our 2022 Impact Report explores how SANAD contributed to building a resilient environment for micro, small, and medium enterprises (MSMEs) in this region.



SANAD’s impact

Number of subloans facilitated to MSMEs and households (2)


Average amount of subloans (2)

USD 3,130

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

USD 1,593,057,000

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


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


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


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


Share of female participants in capacity building projects


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


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


Partners served by SANAD with individual capacity building (2)


People benefitted from technical assistance (2)


Number of active borrowers


Number of partner institutions (1)


Share of outstanding portfolio in local currencies


Share of outstanding subloans in local currencies


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


Committed capital debt sub-fund

USD 459.4 mn

Committed capital equity sub-fund I & II

USD 81.9 mn

Volume of technical assistance projects (1)

USD 25.2 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


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

Invest with us

It would be a great pleasure to meet you. Let’s talk about your future plans.

Enter the character string shown in the picture

* Fields marked with an asterisk are required