The Technical Assistance Facility of the SANAD Fund for MSME has received a EUR 200,000 contribution from FMO, the Dutch Development Bank. The grant comes from the MASSIF Fund, which FMO manages on behalf of the Dutch Ministry of Foreign Affairs. This grant will serve to deploy effective, targeted and innovative projects to maximise the impact and outreach of SANAD's development finance mandate in the MENA region.
SANAD is one of a limited number of impact investing funds that offers in-house technical assistance along with financing for micro, small and medium enterprises, housing, and a range of other economy-building sectors. In early 2017, FMO also provided financing via the MASSIF Fund to SANAD through an investment of USD 15 million in the senior tranche of the SANAD Debt Sub-fund.
SANAD Technical Assistance Facility Committee Chairman Ines Ebrecht said: “FMO’s contribution to the SANAD TAF represents an important donation that will enable us to continue our work to increase employment and expand financial inclusion across the MENA region in close support of the SANAD Fund and its many partners.”
Martin Steindl, Capacity Development Manager at FMO stated: “The MENA region has undergone fundamental changes since early 2011. The political landscape highlights the need for economic development and the creation of employment, especially among the youth. FMO is very proud to support SANAD’s partner institutions through the Technical Assistance Facility that will deliver hands-on support to optimize product offerings, access new customer segments, adopt alternative lending technologies, and develop new initiatives. By targeting MSMEs in a fragile region of the world, the SANAD Fund and Technical Assistance Facility are directly supporting the poorest in the region, promoting financial inclusion, stimulating job creation, and encouraging economic growth.”
Established in 2011, 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 at partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D. 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 the Dutch development bank FMO. A public-private partnership, the fund is advised by Finance in Motion GmbH, Frankfurt am Main, Germany. For more information, please visit: www.sanad.lu.
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