Impact

SANAD fosters 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.

The fund takes a holistic approach in building the wider ecosystem for serving the “missing middle” of underbanked target groups – for instance by building the capacity of local lenders to serve MSMEs or conducting much-required research and development with the support of the SANAD Technical Assistance Facility. SANAD thereby lays the foundation for systemic, long-lasting impact for economic growth and job creation.

In addition to its core focus on the underserved MSME sector, SANAD constantly strives to push the impact frontier by focusing on nexus topics such as increased access to financing for housing, support for agriculture, the promotion of innovations in financial technology, and the financial inclusion of youth and women.

The SANAD Impact Report is here!

Read the new SANAD Impact Report: Digitalizing the future of Entrepreneurship and discover more about the increasingly important role digitalization is playing in supporting the growth and prosperity of micro, small and medium enterprises within the Middle East and North Africa and sub-Saharan Africa regions.   

 

 

Impact Facts & Figures

Debt Sub-Fund:
263,986

Loans facilitated to micro, small, and medium enterprises and low-income households

3.721
USD

Average size of loans facilitated to micro, small, and medium enterprises and low-income households

88 %

Share of loans facilitated in local currency

Equity Sub-Funds:
2.880

Staff employed by partner institutions

1.485.977

Loans disbursed by partners institutions

Technical Assistance:
22
million USD

Total project volume approved

34.213

Technical assistance beneficiaries

311

Technical assistance projects approved

97%

Partners rated the Technical Assistance Facility as being an ‘excellent’ or ‘very good’ partner

Type of technical assistance:

Figures as of:

Q1 2022

Contributing to the Sustainable Development Goals

SANAD’s activities have been mapped towards the Sustainable Development Goals (SDGs) at an SDG target level, based on which 6 have been selected as core SDGs in 2021.

NO POVERTY

SANAD contributes to eradicating poverty by meeting the basic financing needs of MSMEs and low-income households.

Indicators

Number of subloans facilitated to MSMEs and households* 241,550
Average amount (USD) of subloans. 3,237

 

ZERO HUNGER

SANAD contributes to improving agricultural productivity and the livelihoods of small-scale food producers through secure and equal access to financial services.

Indicators

Share of subloans disbursed to rural and semi-urban end-borrowers 27%

 

DECENT WORK AND ECONOMIC GROWTH

SANAD contributes to economic development and job creation by enabling entrepreneurs to grow their businesses, especially young entrepreneurs and MSMEs in rural areas.

Indicators

Number of indirect jobs supported in MSMEs receiving financing through partner institutions1* > 229,000
Number of direct jobs supported in SANAD ESF I partner institutions* 2,885
Number of partner institutions served by SANAD with individual capacity building* 197
Number of people trained* 28,711

 

INDUSTRY, INNOVATION AND INFRASTRUCTURE

SANAD contributes to inclusive industrialization by upgrading small-scale enterprises through improved access to finance and innovative solutions.

Indicators

Volume of subloans enabled for SANAD’s target group (USD)* 781,832,840
Number of active borrowers* 19,202
Number of subloans contributed to by building up SANAD ESF partner institutions* 999,759
Number of active partner institutions 49
Share of outstanding portfolio in local currencies 16%

 

REDUCE INEQUALITIES

SANAD contributes to economic inclusion by sustaining and growing business income among marginalized entrepreneurs, such as women, youth, refugees, and rural populations

Indicators

Share of outstanding subloans in local currencies 85%
Number of women-owned enterprises reached through MSME finance1* 32,300
Share of female participants in capacity building projects* 52%

 

PARTNERSHIP FOR THE GOALS

As a blended finance fund, SANAD brings together public and private investors for sustainable development.

Indicators

Committed capital (USD) DSF 466,906,231
Committed capital (USD) ESF I & II 69,377,830
Total volume of technical assistance projects (USD)* 20,881,898

 

* Cumulative figure since inception
1 Figure draws on Partner Institutions reporting and estimations by SANAD.

Impact Stories

At its core, SANAD is dedicated to equipping small business owners and entrepreneurs with the financing and enabling environment they need to sustain or grow their activities. Ranging from manufacturing companies to hair salons and craft shops, such enterprises face limited access to financial services in the MENA region. By working with local financial intermediaries to better serve this target group and building the wider ecosystem for financial inclusion, SANAD contributes to empowering entrepreneurs to create or expand their enterprises. Read our stories to discover how SANAD creates impact.

Impact Management

It starts with a good groundwork. SANAD is guided by a clearly defined impact agenda, stipulating not only the fund’s goals but also the specific eligibility parameters for its investments. Only if an investment meets the fund’s requirements for financial return and development impact, as well as sound environmental and social (E&S) management, will it proceed.

Once invested, impact and E&S monitoring are just as important as tracking financial performance. Monitoring provides a constant feedback loop of how well the fund is progressing towards its goals and provides insights and learnings. Periodic in-depth impact studies, conducted by external parties and financed by the SANAD Technical Assistance Facility, and field visits provide complementary information on specific impact indicators. This enables SANAD to continuously fine-tune its strategy and to flexibly react to changing conditions in order to further enhance the reach and depth of its impact.


Finance in Motion, SANAD advisor, is a signatory of the Operating Principles for Impact Management (Impact Principles), also aligning SANAD’s impact management system with these recognized industry practices. 
Along with an annual disclosure statement, which provides details on the practices applied, the advisor is committed to periodic independent verifications. The first verification, conducted in 2021 by the specialized consulting firm BlueMark, affirmed strong alignment with the Operating Principles for Impact Management. 
  
Read Finance in Motion’s Operating Principles for Impact Management Disclosure Statement

Sanad's Impact Pathway

For more details on how SANAD works towards its impact targets, refer to the Theory of Change, which summarizes the fund's impact logic and builds the foundation for its impact measurement and management system. 

Read more about our Impact

Sustainability

In pursuing its sustainable investment objective, SANAD places a priority on effectively managing potential environmental and social (E&S) risks associated with the fund’s investments. In addition, the fund integrates environmental, social and governance (ESG) considerations into decision-making and investee engagement. In line with this sustainable investment objective, the Fund falls within the scope of Article 9 of the Regulation (EU) 2019/2088 on the Sustainable Finance Disclosure Regulation (SFDR).

For sustainability-related disclosures in line with the requirements of the SFDR and more information on the Fund’s approach to impact and sustainability, please refer to: