SANAD celebrates record investments supporting entrepreneurs in the Middle East and Africa
Through 32 partner financial institutions, SANAD has disbursed over USD 110 million in loans to support employment and resilience
Luxembourg, February 10, 2022– The SANAD Fund for MSME (SANAD) is proud to have disbursed a record USD 111 million in loans to financial institutions that specialize in serving micro, small and medium enterprises (MSMEs) in the Middle East and North Africa (MENA) region and selected countries in sub-Saharan Africa (SSA). The financing was supplemented by more than 38 new business support initiatives, led by the SANAD Technical Assistance Facility (TAF). SANAD has continued to mitigate the economic consequences of the coronavirus pandemic by providing uninterrupted access to finance and well-targeted Technical Assistance support.
The SANAD’s Debt Sub-Fund expanded its outreach in MENA region ending the year with 32 partner institutions with a strong focus on serving small businesses. True to its mission to provide responsible finance, SANAD continued to offer local currency loans, leveraging on its internal hedging capabilities extending around 25% of its loans in local currency. The fund also accelerated lending to agri-businesses and accompanied this with high-impact TA projects to support the development of credit scoring tools in Egypt.
This was also the year in which SANAD continued to support MSMEs in selected countries of sub-Saharan Africa. By leveraging on the links between SSA and the fund’s core region, MENA, the fund aims to transfer valuable knowledge and innovations that can help strengthen SSA’s entrepreneurship environment.
In 2021, the debt Sub-Fund added one new regional partner in SSA with strong development impact and fit with the fund’s mission.
Despite the challenging environment, the Equity Sub-Fund I reached an agreement for its first equity divestment to a like-minded investor and the closing is expected in the next few months.
The SANAD’S Equity Sub-Fund II made its third investment in SkyGarden – a fintech startup with regional focus, based in Nairobi. Furthermore, the Equity Sub-Fund II also accomplished its first exit by selling its minority stake in POS Rocket to the biggest regional competitor. Despite the short company holding period, SANAD was able to contribute significantly to the impact achievements of the company. More than 2,000 small and medium enterprises were served by POS Rocket at the time of the exit and SANAD, together with the TAF, led a company which was once a participant of SANAD’s Amman Fincluders Challenge in 2017 through its funding rounds, established an E&S framework and contributed to a formal setup in terms of Corporate Governance.
In addition to this, the fund continued to deliver on its impact priorities with the implementation of its innovative COVID-19 digitalization grants.
Last but foremost, in 2021 SANAD celebrated its ten-year anniversary, with the “A Decade of Supporting Entrepreneurship and Employment” event. The occasion was also an opportunity to present the SANAD Impact Investment Report, highlighting the achievements of the fund as one of the leading impact investors in the MENA region. If you did not have the chance to join the event or would like to re-watch the presentations, you can (re-)experience it here.
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.
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