Luxembourg, 26 June 2023 – The SANAD Fund for MSME has released its Impact Report for 2022, ‘Strengthening Resilience for MSMEs in the Middle East and North Africa’, highlighting how vital resilience is for the continued growth of micro, small, and medium enterprises (MSMEs) in this region.
The fund ended 2022 with an outstanding portfolio of debt and equity investments of over USD 404.2 million. Loans extended to partner institutions (PIs) in the target region serving the MSME sector provided much-needed liquidity for businesses to sustain and support jobs, despite the compound crises.
Since its inception in 2011, the fund, through its debt and equity investments has enabled a record USD 1.5 billion to MSMEs and households through its partner institutions, successfully addressing the persistent financing gap in the region. In addition, the fund also contributed to employment in the Middle East and North Africa (MENA) region during the past year, supporting over 48,000 jobs.
SANAD Board Chairperson Dr. Daniela Beckmann said 2022 was a challenging year for entrepreneurs in the MENA region and beyond, particularly in light of the war in Ukraine and a moderate post-pandemic economic recovery. “Micro, small, and medium enterprises, the engines of local economies, faced compounding headwinds, such as rising energy costs, food shortages, and rapidly increasing interest rates,” she commented. “Against this backdrop, we are encouraged to see that SANAD’s long-term strategy to contribute to an inclusive and robust entrepreneurial ecosystem that empowers MSMEs has led to positive outcomes.”
Most of SANAD’s loans to microfinance institutions in the region were offered in local currencies, ensuring neither they nor end-borrowers are exposed to foreign-currency fluctuations. “SANAD has further sharpened its focus on the underserved segments of the market, with a large majority of its financing channeled to micro and small clients most affected by the worsening economic environment,” said Dr. Beckmann.
One of the stand-out achievements of 2022 was the contribution made by the SANAD Technical Assistance Facility (TAF). The TAF engaged in 106 projects last year, ranging from individual capacity-building support to valuable sector initiatives, to leading market research, strengthening the impact of SANAD’s investments and further bolstering the MSME ecosystem.
The Womenpreneur Tour 2022, sponsored by TAF, celebrated leading female entrepreneurs in technology and innovation in Algeria, Egypt, and Lebanon. The TAF also completed a groundbreaking study on how microfinance institutions in the MENA region can better support small businesses to adopt more sustainable practices and adapt to climate change.
In 2022, the Equity Sub-Fund II invested in Cartona, a leading B2B platform connecting Egyptian retailers with suppliers digitally. This platform has created more equitable market access for small businesses and supported Cartona’s MSME customers in accessing innovative financial services, increasing their client base and income.
Commenting on the report, Dr. Beckmann said that resilience will continue to play an essential role in entrepreneurs' lives, especially in challenging times. “We are deeply grateful for the contribution made by our partners, investors, and local institutions in the success of SANAD’s mission,” she said. “We look forward to continuing our work together to drive positive change and create a brighter future for MSMEs in the region.”
Learn more in the SANAD Fund for MSME Report 2022: Strengthening Resilience for MSMEs in the Middle East and North Africa
About SANAD
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries in sub-Saharan Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.
An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.
For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
Media contact – SANAD
Anne Johnson
Senior Officer, Marketing & Communications
Phone: +49 (0)69 271 035-742
Email: pressnoSpam@sanadnoSpam.lu
Share: