Impact contribution
>360,000 indirect jobs supported by MSMEs receiving finance through partner institutions
Impact strategy
Social impact
Investment strategy
Private debt and private equity
Assets under management
Debt Sub-Fund
USD 448.2 mn
Equity Sub-Fund I
USD 22.7 mn
Equity Sub-Fund II
USD 59.2 mn
Website
www.sanad.lu
Initiated in
2010
Initiated by
KfW Development Bank, with Finance in Motion as fund advisor and risk capital from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission
Target regions
Middle East, North and sub-Saharan Africa
SFDR classification
Article 9 fund
The SANAD Fund for MSME (SANAD) provides private debt and private equity financing to eligible partner institutions in the Middle East, North and sub-Saharan Africa to support growth and employment creation in the region’s micro, small, and medium enterprise (MSME) sector. In addition, SANAD’s Equity Sub-Funds also actively support the formation of greenfield ventures for addressing underserved segments and geographic areas. Its unique financing offer is complemented by a Technical Assistance Facility that delivers tailored non-financial support to embed and amplify the fund’s impact.
Funding is provided by private and public investors and can be channeled into either the debt or equity sub-funds, depending on investor’s preferences and risk profiles. Both financial vehicles aim to increase employment and income generation through broader access to finance. Financing is extended to qualified and eligible financial institutions which then on-lend to MSMEs. SANAD’s two equity sub-funds acquire minority stakes in impact-driven financial intermediaries in the region.
SANAD improves financial access to the “missing middle”
Contributing to economic growth and job creation by financing micro, small and medium enterprises
SANAD aims to foster economic development and employment creation in the Middle East and North Africa (MENA), especially among youth, by financing micro, small, and medium enterprises (MSMEs) and low-income households via qualified local lenders.
By improving financial access to the underbanked “missing middle”, the fund aims to lay the foundation for systemic, long-lasting economic growth and job creation in these regions.
The financing efforts contribute to the following Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), and Partnership for the Goals (SDG 17).
Recent stories
SANAD’s impact
Number of subloans facilitated to MSMEs and households (2)
510,000
Average amount of subloans (2)
USD 3,130
Volume of subloans enabled for SANAD’s target group (2)
USD 1,593,057,000
Share of subloans disbursed to rural and semi-urban end-borrowers
49%
Share of female clients in SANAD partner institutions’ portfolio (4,5)
49%
Share of indirect female jobs supported in MSMEs receiving financing through partner institutions (1,2)
34%
Share of direct female jobs contributed to within SANAD Equity Sub-Funds’ partner institutions
45%
Share of female participants in capacity building projects
48%
Indirect jobs supported in MSMEs receiving financing through partner institutions (1,2)
351,400
Direct jobs supported in investee companies receiving equity financing (2,3)
600
Partners served by SANAD with individual capacity building (2)
201
People benefitted from technical assistance (2)
36,500
Number of active borrowers
89,300
Number of partner institutions (1)
57
Share of outstanding portfolio in local currencies
16%
Share of outstanding subloans in local currencies
96%
Share of young clients in SANAD partner institutions portfolio (4,5)
37%
Committed capital debt sub-fund
USD 459.4 mn
Committed capital equity sub-fund I & II
USD 81.9 mn
Volume of technical assistance projects (1)
USD 25.2 mn
1 Figures are modeled by SANAD based on primary reporting and third-party data.
2 Cumulative figure since SANAD‘s inception.
3 Figures have been pro rated according to SANAD‘s respective ownership share.
4 Figures are based on the reporting of a sample of SANAD PIs on clients with individual subloans in their portfolio.
5 Results reflect performance of SANAD Debt Sub-Fund only
* Figures as of: Q2 2023
About SANAD
Fund details
How the fund invests
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