SANAD Fund for MSME receives approval from Central Bank of Egypt to provide Tier II capital

Luxembourg, July 2, 2020 – The SANAD Fund for MSME (SANAD) announced today that it has been granted the approval of the Central Bank of Egypt to provide Tier II capital to banks in Egypt. The approval will enable SANAD to commit supplementary capital to help banks in the country increase their support for Egypt’s ongoing economic development, especially within the current difficult environment brought about by the COVID-19 pandemic. By strengthening banks’ capital base, the impact fund aims to further promote a solid financial infrastructure to serve micro, small, and medium enterprises (MSMEs) in the region.

SANAD has been fostering business development and job growth in the Middle East and North Africa since 2011. It accomplishes this primarily by investing in on-the-ground financial intermediaries that are committed to serving MSMEs, which form the backbone of the region’s economy. In addition to equity investments through the SANAD Equity Sub-Funds I & II, SANAD uses its Debt Sub-Fund to provide its partners with liquidity – often in local currency – for on-lending to local entrepreneurs. SANAD is currently in discussions with a number of banks with a view to providing Tier II capital that will support their loan book expansion, bringing new products to MSME clients. 

SANAD Board Chairperson Dr. Daniela Beckmann said, “This good news is especially welcome in challenging days like these, when it is more important than ever for entrepreneurs to be able to rely on a stable financial infrastructure to see them through difficult times. Thanks to the new approval from the Central Bank of Egypt, SANAD’s ability to offer our partners Tier II capital will ultimately help them operate with increased confidence and agility, meeting the needs of MSMEs while systemically bolstering the availability of tailored financing for an important but often underfunded pillar of the economy.”

About SANAD 

The SANAD Fund for MSME finances micro, small and medium enterprises and low-income households in the Middle East and North 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. 

For more information on the SANAD Fund for MSME, please visit: www.sanad.lu  
For more information on Finance in Motion, please visit: www.finance-in-motion.com  

Media contact – SANAD
Nikki Eggers
Senior Officer, Marketing & Communications
Phone: +49 (0)69 / 271 035-470 
Email: press@sanad.lu