Investing in Employment in the Middle East and North Africa Region

How SANAD Works

Donors and investors can provide funding for the investment fund of the SANAD Fund for MSME as well as SANAD's Technical Assistance Facility. This enables SANAD to offer both financial instruments and capacity building assistance to partner institutions in the region. Building on the capacities and network of its partner institutions, SANAD funds are channeled to the ultimate target group –micro, small and medium enterprises. This lean structure with few layers and straightforward pathways not only ensures transparency – it keeps the Fund agile and flexible in addressing market changes.



Financial solutions and allocation

Although its focus is on the ‘missing middle’ of small enterprises, the SANAD aims to support the entire spectrum of MSMEs by providing partner institutions with financial instruments adapted to their respective refinancing needs:

  • Short, medium and long-term senior debt
  • Subordinated loans, including mezzanine loans
  • Term deposits
  • Certificates of deposit
  • Term enhancement instruments, e.g. stand-by facilities
  • Co-investments (syndicated loans or (sub-)participations)
  • Stand-by letters of credit
  • Guarantees
  • Equity participations

Micro enterprises are primarily served by microfinance institutions, while commercial banks cater for small and medium enterprises. However, other institutions that are just as important to the financial sector also address the financing needs of MSMEs. That is why SANAD covers the spectrum of financial actors active in MSME financing:

  • Microfinance institutions
  • Commercial banks
  • Leasing and factoring companies
  • Financial service providers
  • Other financial intermediaries

Technical Assistance

SANAD has also established a dedicated Technical Assistance Facility (TAF) to provide hands-on and pragmatic support to partner institutions, so they may more effectively serve the Fund’s target group, implement Responsible Finance, and realize their own growth potential.

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