The SANAD* Fund for MSME is an impact investment fund dedicated to supporting entrepreneurs in the Middle East and North Africa.
By providing much-needed access to financial resources, SANAD helps micro, small, and medium enterprises (MSMEs) in the region fulfill their role as engines of inclusive economic growth, job creation, and prosperity.
SANAD channels funding to this vital target group by building the ability of the local financial sector to serve the needs of MSMEs. This is done by
* SANAD means “support” in Arabic
investing in local partners such as microfinance institutions, leasing companies, banks, fintechs, and other financial intermediaries that share our commitment to financial inclusion. SANAD also facilitates access to housing loans for underprivileged sections of society, in addition to promoting agricultural lending and financial technology.
SANAD’s unique offering of debt and equity financing is complemented by a Technical Assistance Facility that delivers tailored non-financial support to embed and amplify the fund’s impact.
In supporting MSME development, the SANAD Fund for MSME follows these key imperatives:
SANAD also aims to:
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.
Preserving and generating jobs in the Middle East and North Africa is quite unthinkable without micro, small, and medium enterprises (MSMEs). This sector accounts for nearly two-thirds of GDP and almost three-quarters of employment in the region. Yet the great majority have limited to no access to financial resources. In addition, small enterprises often hit a wall at a crucial stage of growth: As they graduate from the micro stage, their financial requirements start to exceed the scope of microfinance institutions (MFIs). Yet they are still too small and informally structured for commercial banks. They fall into the “missing middle.”
With targeted financing solutions and hands-on assistance, the SANAD Fund for MSME expands resources to this underserved but important sector. The fund enables commercial banks to widen their client base at the lower end of the scale, and MFIs to accompany their customers further along the growth curve. This allows entrepreneurs the means to grow, and jobs to be created and sustained. And by trailblazing financing for MSMEs in the region, SANAD helps open up opportunities for further investment.
SANAD fosters agricultural and rural development in the region. Agriculture contributes significantly to the economy of many countries in the Middle East and North Africa, employing a large share of the population. SANAD actively supports agricultural and economic development in rural areas where financing opportunities can be especially scarce.
SANAD also enables access to affordable housing for low-income individuals. Projections from studies conducted by the SANAD Technical Assistance Facility have identified a vital need to fill housing demand over the next few decades. In addition, increasing housing quality further accelerates economic development and prosperity.
Financial technologies have been developing rapidly in recent years, unlocking significant opportunities to address the needs of the financially excluded. SANAD actively supports innovative “fintech” companies that contribute to financial inclusion and further assists its partner institutions in their efforts towards digitalization.
SANAD is also actively addressing the refugee crisis in the Middle East. The fund is working to expand access to financing for both refugees and their host communities, while the SANAD Technical Assistance Facility provides refugees with significant non-financial services.
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:
STRUCTURE: Specialized Investment Fund, SICAV-SIF, under Luxembourg law involving different share classes
INITIATOR: KfW Development Bank
Equity Sub-Fund I
Equity Sub-Fund II
Committed Investment Portfolio Debt Sub-Fund
Financing facilitated to MSMEs and low-income households in 215,044 loans Debt Sub-Fund
Outstanding Investment Portfolio Equity Sub‑Fund I
Outstanding Investment Portfolio Equity Sub‑Fund II
Egypt, Jordan, Lebanon, Morocco, Palestinian Territories, Tunisia
Partner Institutions/ Investees of Debt Sub-Fund
Partner Institutions/ Investees of Equity Sub-Funds I and II
Technical Assistance Facility Project Volume
Technical Assistance Facility Number of Projects Approved
Figures as of: