Investing in Employment in the Middle East and North Africa Region

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Press Releases

Frankfurt am Main and Amman, 2013-08-28

SANAD tops up last year’s investment with Middle East Micro Credit Company in Jordan by USD 1 million to 4 million

Frankfurt am Main and Amman, 28 August 2013 – The SANAD Fund for MSME (SANAD) signed a further synthetic local currency loan in Jordanian dinars equivalent to USD 1 million with Middle East Micro Credit Company (MEMCC). The first loan of Jordanian dinar equivalent USD 3 million is just over a year old. This expansion shows how successful the last months have been for MEMCC.

With this supplementary loan MEMCC will further expand its lending services to micro-entrepreneurs and very small enterprises, thereby spurring economic growth and job creation. SANAD’s partnership with MEMCC also extends to several technical assistance projects. Middle management staff members are receiving tailor-made training to develop and enhance their managerial skills. In addition, MEMCC staff members are being trained on client protection principles as defined and promoted by the SMART campaign.

MEMCC has a market share of 20 per cent of gross loans in Jordan and approximately 23,800 clients, 65 per cent of whom are women. Approximately 700 additional clients, in particular very small enterprises, will benefit from the new credit facility. MEMCC has unique expertise in lending to this segment, which is particularly prone to having difficulty in accessing finance, since it is often too large for other microfinance institutions and too small for the conventional banking system. Furthermore, the synthetic local currency loan will provide MEMCC with scarce longer term local currency funding, thereby improving the maturity profile of its liabilities and allowing the institution to protect itself against foreign exchange risk.

Wolfgang Reuss, Chairman of the SANAD Board of Directors, says: “We look back on a thriving year in the partnership of MEMCC and SANAD. We are very pleased with this development. During the last year a lot of Jordanian people could start or expand their businesses with the help of MEMCC and thus increase their incomes and improve their living conditions. Thanks to the top-up credit this success story can continue.”

“We are very happy to be strengthening our relationship with the SANAD fund”, says Naser Darwish, General Manager of MEMCC. “The new loan will enable us to continue reaching out to our broad clientele ranging from micro- to small enterprises and entrepreneurs."

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About the SANAD Fund for MSME

Initiated and funded by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union in August 2011, the SANAD Fund for MSME (SANAD) provides medium- and long-term debt, guarantees, stand-by facilities and equity financing to commercial banks, microfinance institutions and other financial institutions in the Middle East and North Africa (MENA) region. The purpose of SANAD is to strengthen the local micro-, small and medium enterprise (MSME) sector and financial markets in line with the principles of responsible finance. Eligible countries are currently Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen. The Fund’s activities are supported by a technical assistance facility, which provides capacity-building support to partner institutions. SANAD is a public-private partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors, including the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ) and KFW Development Bank. SANAD is privately managed by a consortium of Finance in Motion GmbH, Frankfurt/Main and Oppenheim Asset Management Services S.à r.l., Luxembourg.


About Middle East Micro Credit Company

Established in 2003 in Jordan, MEMCC is a not for-profit development finance institution. It provides business loans to micro- and small enterprises, as well as home improvement loans to low-income families. In 1998, the company was initially established as the Southern Jordan Access to Credit Project with funding provided by USAID and later evolved into the Jordan Access to Credit Program as it expanded. It is a member of the Microfinance Association of Jordan and the Sanabel Microfinance Network of Arab Countries and it is perceived as an industry expert on operations in southern Jordan and on lending to small enterprises.


Media Contact SANAD

 

Media contact MEMCC

Merle Römer
Phone: +49 (0)69/977 876 50-171
E-mail: press@sanad.lu
  Sandy Salkham
CFO
Phone: +962 6 5831188
E-mail: ssalkham@chf.org.jo
 

 
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/