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.
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: ADDRESSING THE GENDER FINANCE GAP - THE SANAD 2023 IMPACT REPORT
Share of female clients in SANAD Partner Institutions’ portfolio1,2
Share of sub-loans disbursed to rural and semi-urban end-borrowers
Share of loans facilitated in local currency
Indirect jobs supported in MSMEs receiving financing through partner institutions
People benefitted from Technical Assistance
Share of female participants in capacity building projects
*Figures as of: Q4 2023
1 Figure is based on the reporting of a sample of SANAD DSF PIs in the MENA region that provided data on female/young clients receiving individual sub-loans in their portfolio.
2 In response to the consequences of the COVID-19 crisis and macroeconomic conditions, some PIs in SANAD portfolio adopted a more conservative underwriting approach. This led to the decreasing exposure to young clients, which are typically perceived as a riskier segment by financial institutions. In response to this trend, SANAD aims to encourage its PIs to finance young clients through impact-related KPIs introduced in 2024.
SANAD’s activities have been mapped towards the Sustainable Development Goals (SDGs) at an SDG target level, based on which 7 have been selected as core SDGs in 2021.
SANAD contributes to eradicating poverty by meeting the basic financing needs of MSMEs and low-income households.
Indicators
| Subloans facilitated to MSMEs and households (2) | 530,000 |
| Average amount of subloans (2) | USD 3,400 |
| Volume of subloans enabled for SANAD’s target group (2) | USD 1,798,449,000 |
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(5) | 52% |
SANAD contributes to improving gender equality and empower all women and girls.
Indicators
| 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 | 48% |
SANAD contributes to economic development and job creation by enabling entrepreneurs to grow their businesses, especially young entrepreneurs and MSMEs in rural areas.
Indicators
| Indirect jobs supported in MSMEs receiving financing through partner institutions (1, 2) | 364,000 |
| Direct jobs supported in investee companies receiving equity financing (2,3) | 610 |
| Partners served by SANAD with individual capacity building (2) | 204 |
| People benefitted from technical assistance (2) | 36,900 |
SANAD contributes to inclusive industrialization by upgrading small-scale enterprises through improved access to finance and innovative solutions.
Indicators
| Number of active borrowers | 91,800 |
| Number of partner institutions (2) | 58 |
| Share of outstanding portfolio in local currencies | 16% |
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(5) | 95% |
| Share of young clients in SANAD partner institutions portfolio (4,5) | 20% |
As a blended finance fund, SANAD brings together public and private investors for sustainable development.
Indicators
| Committed capital (USD) DSF | USD 456,000,000 |
| Committed capital (USD) ESF I & II | USD 82,000,000 |
| Total volume of technical assistance projects | USD 26,000,000 |
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: Q4 2023
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.
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’s 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 latest verification, conducted in 2023 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.
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.
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:
Statement on consideration of principal adverse impacts on sustainability factors for a description of relevant principal adverse impacts and the policies and actions to identify, prioritise, and address such impacts as well as a summary of the fund’s engagement policies.
Statement on sustainable investment objective for a description of the sustainable investment objective of the fund, and its (investment) strategy to attain that objective, along with the approach to measuring, monitoring, and managing impact.
