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

The Sanad Fund for MSME (micro-, small and medium-sized enterprises), an initiative that invests in financial institutions in the Middle East and North Africa, recently loaned the local-currency equivalent of USD 6 million to Enda Inter-Arabe (Enda), a financial services provider and Tunisia-based arm of non-governmental organization Enda Third-World, to support Enda’s expansion into poor rural areas of Tunisia; increase product offerings to young entrepreneurs; provide financial services to micro, small and medium-sized enterprises; and promote the empowerment of women. The loan is Sanad’s first debt investment in the country [1]. Further details of the loan are unavailable.

As of 2012, Enda Inter-Arabe reported to the US-based nonprofit Microfinance Information Exchange (MIX) Market total assets of USD 95.3 million, a gross loan portfolio of USD 86.8 million and approximately 210,000 active clients. Enda Inter-Arabe does not take deposits.

For the same year, Sanad had raised total investor commitments of USD 61 million, with USD 38 million in approved investments. Sanad was founded in 2011 by German development bank, Kreditanstalt fur Wiederaufbau (KfW) Entwicklungsbank, with funding from the German government and the European Union.

By Jennifer Young, Research Associate

About to Enda Inter-Arabe
Enda Inter-Arabe was founded in Tunisia in 1990. It is an international non-governmental organization and a member of Senegal-based Enda Third-World. It offers financial services such as loans and loan-insurance and non-financial services, like training in simple accountancy and marketing, excursions, exhibitions, networking events and counseling (legal, health, social security, public services). As of 2012, Enda Inter-Arabe reported to the US-based nonprofit Microfinance Information Exchange (MIX) Market total assets of USD 95.3 million, a gross loan portfolio of USD 86.8 million and approximately 210,000 active clients. Enda Inter-Arabe does not take deposits.

About Sanad Fund for MSME (Sanad)
Founded in August 2011, Sanad Fund for MSME 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 micro-, small and medium-sized enterprise (MSME) sector. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW) Entwicklungsbank, and it is funded by the German Federal Ministry of Economic Cooperation and the European Union. It is headquartered in Luxembourg. Sanad plans to focus on 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 Expands into Tunisia with USD 6 million Local Currency Loan to Enda Inter-Arabe,” http://www.sanad.lu/Press-Releases—2013-07-10-SANAD-expands-into-Tunisia-with-USD-6-million-local-currency-loan-to-Enda-inter-arabe——_site.index..html_dir._siteid.67_nav._entryid.80_likecms.html

MicroCapital Story, June 26, 2013, “MICROCAPITAL BRIEF: Advans SA to Create Tunisian Microfinance Institution Advans Tunisie,” https://www.microcapital.org/microcapital-brief-advans-sa-to-create-tunisian-microfinance-institution-advans-tunisie/

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, February 5, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME to Loan $20m to Lebanon’s Bank Audi for Small and Medium-sized Enterprises in Middle East, North Africa,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-20m-to-lebanons-bank-audi-for-small-and-medium-sized-enterprises-in-middle-east-north-africa/

MicroCapital Universe Profile: Enda Inter-Arabe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Enda+Inter-Arabe

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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