MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $2.5m to Microfinance Institution Vitas Palestine


The Sanad Fund for MSME (Micro, Small and Medium-Sized Enterprises), an investment vehicle that provides medium- and long-term debt and equity financing to microfinance institutions in the Middle East and North Africa (MENA) region, has agreed to disburse USD 2.5 million to Vitas Palestine, a microfinance provider in the West Bank and Gaza, Palestine. The loan agreement will allow Vitas Palestine issue approximately 850 loans.

”The partnership is critical… to make a lasting investment in the cities and villages we call home,” said Alaa Sisalem, General Manger of Vitas Palestine.

As of 2014, Sanad has raised investor commitments of USD 123 million, with USD 90 million in approved outgoing investments. Its funders include the European Union and the German government. As of 2013, Vitas Palestine reported total assets of USD 16.5 million and a gross loan portfolio of USD 15.6 million outstanding to 5390 active borrowers. It does not accept deposits.

By Victor Mugo, 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 Vitas Palestine

Vitas Palestine, which was formally known as Ryada began as a program of US-Based NGO Global Communities in 1995, providing loans for home improvement in the Gaza Strip. The institution now operates seven branches across the West Bank and Gaza from which it offers microfinance loans for home improvement, small business or household needs to individuals who do not have access to the traditional banking sector. As of 2013, Vitas Palestine reported total assets of USD 16.5 million and a gross loan portfolio of USD 15.6 million outstanding to 5390 active borrowers. It does not accept deposits.

Sources and additional Resources

[1] Sanad Fund for MSME Press release “Sanad Fund for MSME Loans $2.5M to Vitas Palestine”

[2] Vitas Palestine https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=vitas+palestine

[3] MicroCapital Universe, Sanad fund for MSME (SANAD)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SANAD+Fund+for+MSME+%28SANAD%29

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