SANAD Fund for MSMEs

Overview

Established in 2011, the SANAD Fund for MSMEs is a Luxembourg-based impact investment fund dedicated to supporting micro, small, and medium enterprises (MSMEs) in the Middle East, North Africa, and select countries in sub-Saharan Africa. The fund provides debt and equity financing to local financial institutions, enabling them to extend credit to underserved MSMEs and low-income households, thereby fostering economic development and job creation in the region. SANAD's investors include the KfW Development Bank, the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Union, Switzerland's State Secretariat for Economic Affairs (SECO), the Development Bank of Austria (OeEB), Germany's GLS Bank, and the Dutch development bank FMO. The fund is advised by Finance in Motion, a leading impact asset manager. SANAD's investment strategy focuses on providing medium- and long-term debt and equity financing to a diverse range of financial institutions, including commercial banks, microfinance institutions, leasing companies, fintechs, and other financial intermediaries. This approach aims to strengthen the local financial sector's capacity to serve the needs of MSMEs across various industries, such as agriculture, affordable housing, technology, healthcare, education, renewable energy, infrastructure, manufacturing, retail, transportation, tourism, construction, telecommunications, media, and more. By partnering with these institutions, SANAD seeks to address the financing gap faced by MSMEs, particularly those led by young, female, and rural entrepreneurs. In addition to financial support, SANAD offers targeted technical assistance to its partners and entrepreneurs. This includes capacity-building programs, advisory services, and the development of financial infrastructures aligned with the principles of responsible finance. Through these efforts, SANAD aims to enhance the impact of its investments, promote financial inclusion, and contribute to the sustainable growth and resilience of MSMEs in the MENA region. The fund's governance framework is robust and transparent, ensuring accountability and effective management of resources to achieve its mission of fostering economic development and job creation in the region.

Investment Focus

• Eligible financial institutions must demonstrate a commitment to serving MSMEs and low-income households in the MENA region.