The Fund

SANAD's mission is to...

finance micro, small and medium enterprises and low-income household in the Middle East and North Africa via qualified lenders. SANAD thereby fosters economic development and job creation - including youth employment, agriculture, affordable housing, and innovations in finance and financial technologies.

In supporting MSME development, the SANAD Fund for MSME follows these key imperatives:

  • Maintain and create employment, especially for youth and women entrepreneurship
  • Reduce poverty by facilitating self-employment
  • Address the shortage of medium, long-term, and local currency financing

SANAD also aims to:

  • Strengthen financial intermediaries and encourage them to enhance their MSME lending
  • Build inclusive financial systems by cooperating with banks, microfinance providers, and other institutions to open access to financial services and to foster responsible finance principles
  • Promote financial innovation and technology as tools to enhance efficiency, extend outreach, and expand financial inclusion

Environmental, Social, and Governance (ESG) Compliance

  • Promotion of good governance, integrity, and transparency standards
  • Adoption of local and international environmental and social standards
  • Adherence to principles of responsible finance

Target Group Orientation

  • Strategic orientation toward micro, small, and medium enterprises (MSMEs) and segments of society with limited access to affordable housing or agricultural finance
  • Shared commitment to outreach, regional diversification, social impact, and financial innovation

Financial Strength

  • Solid financial track record and strong performance against KPIs and key ratios
  • Qualified management and sound internal systems and processes, e.g., risk management policies, management information systems, and internal controls

SANAD’s Strengths

  • Creation of employment and economic development by financing MSMEs in target countries alleviates migration pressure and generates high impact
  • Unique combination of variety of financing instruments under one umbrella: debt and equity supported by multi-faceted technical assistance facility (support for partner institutions, sector and regulatory bodies)
  • Excellent track record in risk assessment and on-the-ground experience in volatile operating environment
  • Financing through local currency facilities contributes to responsible finance
  • Development of entrepreneurship ecosystem and adding to innovation agenda
  • Attraction of private capital through public funding and risk/return balanced share class structure

“As an impact fund dedicated to its mission, SANAD aims to serve as a reliable partner for its partners in turbulent times. Over the past few months, the fund and its TA Facility have moved swiftly to support them with tailored financing and technical assistance to boost the ability of local financial institutions and MSMEs to tackle the economic effects of this unprecedented crisis.”

Dr. Daniela Beckmann
Chairperson of the SANAD Board of Directors

Our Target Region

Fund Imperatives & Rationale

In supporting MSME development, the SANAD Fund for MSME follows these key imperatives:

  • Maintain and create employment, especially for youth and women entrepreneurship
  • Reduce poverty by facilitating self-employment
  • Address the shortage of medium, long-term, and local currency financing

SANAD also aims to:

  • Strengthen financial intermediaries and encourage them to enhance their MSME lending
  • Build inclusive financial systems by cooperating with banks, microfinance providers, and other institutions to open access to financial services and to foster responsible finance principles
  • Promote financial innovation and technology as tools to enhance efficiency, extend outreach, and expand financial inclusion

In addition, because SANAD is dedicated to impactful, long-term engagement with the market, the fund plays an instrumental role in forming leading greenfield ventures that address the needs of the underserved “missing middle” and help build inclusive systems throughout the region.

How SANAD Works

Eligibility Criteria for Partner Institutions

SANAD partners with a broad spectrum of financial intermediaries that provide our target groups with access to finance. These include microfinance institutions (MFIs), commercial banks, leasing companies, and other financial service providers that meet these key criteria:

Target Group Orientation

  • Strategic orientation toward micro, small, and medium enterprises (MSMEs) and segments of society with limited access to affordable housing or agricultural finance
  • Shared commitment to outreach, regional diversification, social impact, and financial innovation

Financial Strength

  • Solid financial track record and strong performance against KPIs and key ratios
  • Qualified management and sound internal systems and processes, e.g., risk management policies, management information systems, and internal controls

Environmental, Social, and Governance (ESG) Compliance

  • Promotion of good governance, integrity, and transparency standards
  • Adoption of local and international environmental and social standards
  • Adherence to principles of responsible finance

Institutional Structure

SANAD in Brief

August
2011

INCEPTION

STRUCTURE: Specialized Investment Fund, SICAV-SIF, under Luxembourg law involving different share classes

INITIATOR

KfW Development Bank

SANAD in Numbers

452,3
MILLION USD

Committed Capital:
Debt Sub-Fund

22,7
million USD

Committed Capital:
Equity Sub-Fund I

59,2
million USD

Committed Capital:
Equity Sub-Fund II

378,7
million USD

Committed Investment Portfolio Debt Sub-Fund

>1,330.6
million USD

Cumulative Financing to MSMEs

18,0
MILLION USD

Invested Assets Equity Sub-Fund

7,1
MILLION USD

Invested Assets Equity Sub-Fund II

Investment Portfolio Committed per Country

Investment Portfolio Outstanding per Type of Partner Institution

Figures as of:

Q2 2024