SANAD Fund for MSME / Phase III

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SANAD - Arabic for support - was founded in 2011 with funds from the BMZ and the EU. It is a regional fund that provides various financial products to local partner institutions (PI) to improve access to finance for micro, small and medium-sized enterprises (MSMEs) in countries in North Africa, the Middle East and selected countries in sub-Saharan Africa. The aim of SANAD is to improve economic and social living conditions in the region through more income, employment and growth and to contribute to poverty reduction. Possible target countries for the fund are Egypt, Algeria, Côte d'Ivoire, Ghana, Iraq, Yemen, Jordan, Kenya, Lebanon, Morocco, Palestinian territories, Rwanda, Senegal, Syria, Tunisia and Uganda. The German government supports SANAD as part of Germany's response to the Arab Spring. The original commitment was underpinned by numerous increases from 2011 to 2021. Since 2013, KfW has also been financing the fund through subsidies. The EU has also continuously expanded its involvement over the years. In addition to the European Commission, SECO (Switzerland), the Austrian Development Bank (OeEB) and, since January 2017, the Dutch FMO have also participated in SANAD. In addition, GLS Bank was the first private commercial investor for the fund. The private US investor Calvert Impact Capital has also invested in the fund. The fund's resources are used on a revolving basis. The fund has a separately managed Technical Assistance Facility (TAF). This finances tailor-made individual projects for the PIs as well as sector-supporting, partly regional measures to strengthen the (micro)finance sector in the fund's target countries.