Investing in Employment in the Middle East and North Africa Region

SANAD Entrepreneurship Academy

Press Releases

Luxembourg and Cairo, 2019-03-28

SANAD invests in new Egyptian microfinance partner

Local currency loan to Vitas Egypt to address financing gap for entrepreneurs


Luxembourg and Cairo, March 28, 2019 – The SANAD Fund for MSME (SANAD), an impact investment fund advised by Finance in Motion, has provided a local currency loan equivalent to USD 500,000 to a new partner: Vitas Egypt. This tranche represents the first of a series of loans whose goal is to support the newly established microfinance institution in reaching out to Egypt’s underserved very small enterprise (VSE) and microfinance segment.

Vitas Egypt began operations at the end of 2018 as a joint venture between Vitas Group, a leading microfinance network in the region and longstanding SANAD partner, and Ebtikar for Financial Investment, a company dedicated to non-bank financial investments. With the new venture, the partners aim to combine the Vitas Group’s experience in microfinance in the Middle East and North Africa with Ebtikar’s nationwide reach in Egypt. The SANAD financing will be used to provide loans to Vitas Egypt’s clients – mainly VSEs and microenterprises – as well as technical assistance to the institution.

SANAD Board Chairperson Dr. Daniela Beckmann said: “Very small enterprises in Egypt can have difficulty accessing suitable financing for their businesses – they have outgrown microloans but are not yet big enough to qualify for financing from traditional banks. These VSEs are precisely the group targeted by Vitas Egypt. By providing them with both financing and business development services, Vitas Egypt is helping SANAD pursue its mission of contributing to entrepreneurs’ growth in the Middle East and North Africa.”

Vitas Egypt Managing Director Hossam Heiba said: “We are happy to join SANAD in achieving our objective to provide financial products and services to our clients, respond to their needs, and foster their long-term development. In this pursuit, this partnership will help us serve more small Egyptian businesses and help them realize their potential to become part of fostering Egypt’s social and economic development.”

Download Press Release

About SANAD
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 with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much-required research and development.

An impact investment fund advised by Finance in Motion, 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 GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.

For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com

About Vitas Egypt
Vitas Egypt for Microfinance is a partnership between Vitas Group and Ebtikar for Financial Investment, the non-banking services venture of BPE Partners (formerly Beltone Private Equity). Operating under the Microfinance Law of 2014, Vitas Egypt obtained its operating license from the Financial Regulatory Authority (formerly EFSA) in January 2019.

Vitas Egypt launched its operations in March 2019 and is focused on serving micro and small enterprises in need of financing for up to EGP 100,000. Its operation covers a nationwide strategy that builds upon Vitas’s longstanding regional experience, using both digital and traditional channels to rapidly expand its reach across the country.

For more information, please visit: www.vitasegypt.com


Media contact – SANAD
Nikki Eggers
Senior Officer, Marketing & Communications
Phone: +49 (0)69 271 035-470
Email: press@sanad.lu


Media contact – Vitas Egypt
Assem Kamel
Deputy Marketing Manager
Phone: +202 2389 3483
Email: akamel@vitasegypt.com

 
Initiated
|
Advised by
 
  • http://www.kfw-entwicklungsbank.de/
  • http://www.finance-in-motion.de/
 
 
Funded by
 
  • http://www.bmz.de/
  • http://ec.europa.eu/
  • http://www.kfw-entwicklungsbank.de/