MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $5m to Enda Inter-Arabe to Serve More Low-income Microentrepreneurs in Tunisia

The Sanad Fund for MSME (micro-, small and medium-sized enterprise), a Germany-based provider of “medium- and long-term” and equity financing in the Middle East and North Africa, recently agreed to loan the equivalent of USD 5 million in local currency to Enda Inter-Arabe, to help it expand its lending into additional underserved areas of Tunisia.

Enda Inter-Arabe, which first partnered with Sanad in 2013, is a member of Senegal-based nonprofit Enda Third-World, which engages in a range of development efforts in 14 countries.  The Sanad loan is projected to fund approximately 18,000 sub-loans over the next five years.

Enda Inter-Arabe CEO Essma Ben Hamica said that, “this second loan from Sanad is crucial to help Enda respond to the growing needs of micro-entrepreneurs all over Tunisia.”  Additionally, as local banks continue to face a liquidity shortage resulting from the revolution in 2011, the loan answers Enda Inter-Arabe’s call for foreign capital, being “crucial” to helping Enda Inter-Arabe “respond to the growing needs of micro-entrepreneurs all over Tunisia.”

As of 2013, Enda Inter-Arabe reported a gross loan portfolio of USD 106 million and approximately 231,000 active clients.  Enda Third-World operates programs such as loans and loan insurance, as well as non-financial services such as training in accounting and marketing, and counseling on legal issues, health and public services. As of 2014, Sanad has raised investor commitments of USD 123 million, with USD 90 million in approved investments. Its funders include the European Union and the German government.

By Mathew Cerf, Research Associate

About Sanad

The Sanad Fund for MSME (micro-, small and medium-sized enterprise) provides “medium- and long-term” loan and equity to financial institutions in the Middle East and North Africa with the intent of strengthening MSMEs as well as local financial markets in general. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW), and it is funded by the EU and the German Federal Ministry of Economic Cooperation and Development, which is known by its German acronym BMZ. Sanad was founded in 2011 and is domiciled in Luxembourg. It focuses in Algeria, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria and Yemen with an emphasis on Egypt and Tunisia. As of 2014, Sanad has raised total investor commitments of USD 123 million, with USD 90 million in approved investments.

About Enda Inter-Arabe

Enda Inter-Arabe was founded in Tunisia in 1990. It is a non-governmental organization and a member of Senegal-based Enda Third-World, a non-governmental organization that is active in various development efforts in 14 countries in Africa, Eurasia and Latin America. Enda Inter-Arabe offers financial services such as loans and loan-insurance as well as non-financial services such as training in accounting and marketing; excursions; exhibitions; networking events and counseling in areas including legal issues, health and public services. As of December 2013, Enda Inter-Arabe reported a gross loan portfolio of USD 106 million and approximately 231,000 active clients. Enda Inter-Arabe does not take deposits.

Sources and Additional Resources:

[1] Sanad Fund for MSME Press Release: “SANAD extends partnership with Enda inter-arabe to serve more low-income micro-entrepreneurs in Tunisia”

[2] Enda Inter-Arabe: “About us: History

[3] Enda Third World: “Born in the south to build alternatives

[4] MicroCapital Story, March 23, 2014: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $7m to Enda Inter-Arabe for On-Lending to Micro-, Small Enterprises (MSEs) in Tunisia

[5] MicroCapital Universe Profile: “Enda Inter-Arabe

[6] MicroCapital Universe Profile: “Sanad Fund for MSME (Sanad)

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