SANAD invests in new Egyptian microfinance partner (باللغة الإنجليزية فقط)
SANAD invests in new Egyptian microfinance partner
Local currency loan to Vitas Egypt to address financing gap for entrepreneurs
Luxembourg and Cairo, March 28, 2019 – The SANAD Fund for MSME (SANAD), an impact investment fund advised by Finance in Motion, has provided a local currency loan equivalent to USD 500,000 to a new partner: Vitas Egypt. This tranche represents the first of a series of loans whose goal is to support the newly established microfinance institution in reaching out to Egypt’s underserved very small enterprise (VSE) and microfinance segment.
Vitas Egypt began operations at the end of 2018 as a joint venture between Vitas Group, a leading microfinance network in the region and longstanding SANAD partner, and Ebtikar for Financial Investment, a company dedicated to non-bank financial investments. With the new venture, the partners aim to combine the Vitas Group’s experience in microfinance in the Middle East and North Africa with Ebtikar’s nationwide reach in Egypt. The SANAD financing will be used to provide loans to Vitas Egypt’s clients – mainly VSEs and microenterprises – as well as technical assistance to the institution.
SANAD Board Chairperson Dr. Daniela Beckmann said: “Very small enterprises in Egypt can have difficulty accessing suitable financing for their businesses – they have outgrown microloans but are not yet big enough to qualify for financing from traditional banks. These VSEs are precisely the group targeted by Vitas Egypt. By providing them with both financing and business development services, Vitas Egypt is helping SANAD pursue its mission of contributing to entrepreneurs’ growth in the Middle East and North Africa.”
Vitas Egypt Managing Director Hossam Heiba said: “We are happy to join SANAD in achieving our objective to provide financial products and services to our clients, respond to their needs, and foster their long-term development. In this pursuit, this partnership will help us serve more small Egyptian businesses and help them realize their potential to become part of fostering Egypt’s social and economic development.”
About Vitas Egypt
Vitas Egypt for Microfinance is a partnership between Vitas Group and Ebtikar for Financial Investment, the non-banking services venture of BPE Partners (formerly Beltone Private Equity). Operating under the Microfinance Law of 2014, Vitas Egypt obtained its operating license from the Financial Regulatory Authority (formerly EFSA) in January 2019.
Vitas Egypt launched its operations in March 2019 and is focused on serving micro and small enterprises in need of financing for up to EGP 100,000. Its operation covers a nationwide strategy that builds upon Vitas’s longstanding regional experience, using both digital and traditional channels to rapidly expand its reach across the country.
For more information, please visit: www.vitasegypt.com
For more information, please visit: www.investbank.jo, or contact: 06 500 1515.
The SANAD Fund for MSME (SANAD) was established in 2011 to foster economic development and create jobs, particularly for youth in the Middle East and North Africa. SANAD strives to meet these goals by providing debt and equity financing to local partner institutions, such as commercial banks, microfinancers, and other financial institutions, who on-lend money to support micro, small and medium enterprises and to finance housing. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building at partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D. 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), and OeEB, the Development Bank of Austria. A public-private partnership, the fund is advised by Finance in Motion GmbH, Frankfurt am Main, Germany. For more information, please visit: www.sanad.lu.