2023 marks another year of impactful growth for SANAD, reaching USD 416 million in investments

Luxembourg February 19th, 2024 –The SANAD Fund for MSMEs (SANAD), a leading impact investment fund, advised by Finance in Motion and promoting socio-economic growth and employment creation, marks another year of achievements and sustained impact for 2023. Reaching USD 416 million in debt and equity investments, the results reinforce SANAD’s dedication to help finance micro, small and medium-sized enterprises (MSMEs) in the Middle East and North Africa (MENA) region and select countries in Sub-Saharan Africa (SSA).

Despite persistent challenges within the regions, the fund's long-term focus to female empowerment, sustainable and inclusive economic development has been unwavering throughout the year, contributing to positive change in the communities it serves. 

Key 2023 Highlights

Expanding to New Territories 
Since the fund’s inception in 2011, as of 2023, SANAD’s impactful investments contributed to nearly 378,000 jobs supported in MENA and select countries in SSA collectively. The fund has broadened its outreach, with new partners in Jordan and the Republic of Côte d’Ivoire, broadening its financing to the MSMEs in its target markets. With its core focus on micro and small enterprises, 97% of sub-loans were extended to clients in this category.  

SANAD remains one of the few impact investors in the region offering loans denominated in local currency and over the year committed 24% of its debt investments in local currencies. This approach has not only strengthened the fund's portfolio but has also contributed to the economic stability of the regions where it operates, in times of increased currency volatility.  

The expansion of outreach to new partners and the innovative approach to linkages between the MENA and SSA demonstrates the fund's commitment to fostering regional economic development.    

SANAD’s impact was further bolstered by the ongoing support from its capacity building arm through its Technical Assistance Facility (TAF). The TAF continues to implement strategies to strengthen inter-regional linkages between MENA and SSA in financial innovation and sustainable agriculture to bolster micro and small clients’ businesses.

Female Empowerment & Sustainability 
SANAD remains at the forefront of initiatives promoting female empowerment and sustainable development in its target regions.  
In 2023 the fund developed its dedicated, women-centric technical assistance program. It is designed to assist partner institutions that want to increase outreach and non-financial service support to women and will be coupled with capacity building support. The year also saw the creation and implementation of innovative tools – to help institutions monitor and measure the gender impact they generate within their institutions.  

The fund has achieved significant milestones in fostering economic opportunities for women with around 34% of female jobs supported in the MSMEs receiving financing through SANAD Partner Institutions.

In a constant effort to pursue its sustainable development objectives, SANAD places a strong priority on effectively managing potential environmental and social (E&S) risks and support its partners in strengthening their sustainable finance practices. In 2023 the TAF developed and rolled out its Sustainability Program for Partner Institutions, which aims to strengthen the ability of its partners and MSMEs to manage E&S risks and adapt to the impacts of climate change, and therefore continue to deliver sustainable economic value and growth.

SANAD Board Chairperson Dr. Daniela Beckmann said, “2023 demonstrated SANAD’s target regions’ persistent social and economic challenges, and the fund’s strong contribution to long-term development and growth. We are pleased with our accomplishments throughout the year, and as we continue our impact investment journey for 2024, we remain hopeful that our fund will continue to contribute to sustainable development and inclusive prosperity.” 

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.  

About Finance in Motion
Finance in Motion structures, manages, and advises almost €4 billion across 10 funds, all classified as Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to CEE, it has been investing in emerging markets for over 20 years. www.finance-in-motion.com