MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $1m to Middle East Micro Credit Company (MEMCC) of Jordan to Expand Lending Services

The Sanad Fund for MSME (micro-, small, and medium-enterprises), a Luxembourg-based initiative that invests in financial institutions in the Middle East and North Africa, recently provided a local-currency loan of JOD 709,000 (USD 1 million) to the Middle East Micro Credit Company (MEMCC), a Jordan-based for-profit development institution that operates under Global Communities, provides loans to micro-, small, and medium-sized enterprises, to further expand its lending services [1]. The transaction is an expansion of a previous loan of JOD 2.12 million (USD 3 million) made by Sanad to MEMCC in 2012. As part of the deal, Sanad is also providing technical assistance to MEMMC in the form of management and customer service training [1].

As of 2013, MEMCC has a 20-percent market share of loans in Jordan with a 65 percent female client base [1]. As of 2012, MEMCC reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, a gross loan portfolio of USD 26.1 million and approximately 19,300 active borrowers. As of the same year, Sanad had raised total investor commitments of USD 61 million, with USD 38 million in approved investments.

By Megan McGowan, Research Associate

About Middle East Micro Credit Company (MEMCC)

Established in 2003 in Jordan, the Middle East Micro Credit Company (MEMCC) is a for-profit development finance institution that operates under the US-based nonprofit Global Communities. MEMCC provides business loans to micro-, small, and medium-sized enterprises, as well as home improvement loans to low-income families. As of 2011, MEMCC reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, a gross loan portfolio of USD 22.7 million and approximately 15,800 active borrowers.

About Sanad Fund for MSME (Sanad)

Founded in August 2011, the Sanad Fund for MSME (micro-, small, and medium enterprises) provides medium- and long-term debt and equity financing to financial institutions in the Middle East and North Africa with the intent of strengthening local financial markets and the MSME sector. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW) Entwicklungsbank and is funded by the German Federal Ministry of Economic Cooperation and the European Union. It is headquartered in Luxembourg. Sanad operates in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territory, Syria, Tunisia and Yemen. As of 2012, Sanad had raised total investor commitments of USD 61 million, with USD 38 million in approved investments.

Sources and Additional Resources

[1] Sanad Press Release: “Sanad Tops Up Last Year’s Investment with Middle East Micro Credit Company in Jordan by USD 1 million to 4 million”, http://www.Sanad.lu/Home—Press-Releases—2013-08-28-Sanad-tops-up-last-year—s-investment-with-Middle-East-Micro-Credit-Company-in-Jordan-by-USD-1-million-to-4-milli—_site.index..html_dir._siteid.67_nav.33_entryid.107_likecms.html

[2] MIX Market website report on Middle East Micro Credit Company (MEMCC), http://www.mixmarket.org/mfi/memcc

MicroCapital Story, July 24, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $6m to Enda Inter-Arabe of Tunisia for Young Entrepreneurs, Micro, Small, Medium-sized Enterprises in Rural Areas,” https://www.microcapital.org/microcapital-brief-Sanad-fund-for-msme-loans-6m-to-enda-inter-arabe-of-tunisia-for-young-entrepreneurs-micro-small-medium-sized-enterprises-in-rural-areas/

MicroCapital Story, June 13, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME to Loan $2m to Al Majmoua of Lebanon for Microenterprises,” https://www.microcapital.org/microcapital-brief-Sanad-fund-for-msme-to-loan-2m-to-al-majmoua-of-lebanon-for-microenterprises/

MicroCapital Story, February 16, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $2m to Microfinance Institution Palestine for Credit and Development,” https://www.microcapital.org/microcapital-brief-Sanad-fund-for-msme-loans-2m-to-microfinance-institution-palestine-for-credit-and-development/

MicroCapital Story, July 18, 2012, “MICROCAPITAL BRIEF: “Sanad Fund for MSME” Loans $3m to Middle East Micro-Credit Company of Jordan,” https://www.microcapital.org/microcapital-brief-Sanad-fund-for-msme-loans-3m-to-middle-east-micro-credit-company-of-jordan/

MicroCapital Universe Profile: Middle East Micro Credit Company (MEMCC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Middle+East+Micro+Credit+Company+%28MEMCC%29

MicroCapital Universe Profile: Sanad Fund for MSME, http://microcapital.org/microfinanceuniverse/tiki-index.php?%20page=Sanad+Fund+for+MSME+%28Sanad%29

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