MICROCAPITAL BRIEF: Switzerland’s State Secretariat for Economic Affairs (SECO) Commits $9m to Sanad Fund to Support Micro-, Small and Medium-Enterprises (MSMEs) in the Middle East and North Africa (MENA)

The State Secretariat for Economic Affairs, a Swiss government agency that works in developing countries and is known by the acronym SECO, reportedly has invested EUR 5.5 million (USD 7.4 million) in the Sanad Fund for Micro-, Small and Medium-Enterprise (MSME), a Luxembourg-based entity that funds financial institutions in the Middle East and North Africa (MENA). SECO has also donated EUR 1.5 million (USD 2 million) to Technical Assistance Facility (TAF), which provides business consulting services to Sanad’s partner institutions. Sanad intends to use SECO’s investment capital to fund investments in microbanks and other institutions that will issue retail financing to approximately 1,500 MSMEs.

The Sanad Fund for MSME provides financial services in Algeria, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria and Yemen with an emphasis on Egypt and Tunisia. As of 2012, Sanad has raised total investor commitments of USD 61 million, with USD 38 million in approved investments.

By Meraj Husain, Research Associate

About Sanad Fund for Micro-, Small and Medium-Enterprise (MSME)

The Sanad Fund for Micro-, Small and Medium Enterprise (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), and it is funded by the German Federal Ministry of Economic Cooperation and Development (known by its German acronym BMZ) and the European Union. It was founded in 2011 and is domiciled in Luxembourg. Sanad focuses in Algeria, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria and Yemen with an emphasis on Egypt and Tunisia. As of 2012, Sanad has raised total investor commitments of USD 61 million, with USD 38 million in approved investments.

About State Secretariat for Economic Affairs (SECO)

The State Secretariat for Economic Affairs is a government agency of Switzerland that is known by the acronym SECO. SECO is responsible for the planning and implementation of economic and trade policy measures with developing countries. SECO aims to integrate partner countries into the global economy and to promote the sustainable economic growth of these countries, thus contributing to poverty reduction. SECO’s priorities include stable economic conditions, competitiveness, trade diversification, domestic and foreign investment, and basic infrastructure. Particular emphasis is placed on energy, environmental and climate issues.

Sources and Additional Resources

[1] Sanad Fund for MSME: “Switzerland invests EUR 5.5 million in SANAD and donates EUR 1.5 million to the Fund’s Technical Assistance Facility,” http://www.sanad.lu/Press-Releases—Press-Releases—2014-02-03-Switzerland-invests-EUR-5-5-million-in-SANAD-and-donates-EUR-1-5-million-to-the-Fund—s-Technical-Assi—_site.index..html_dir._siteid.67_nav.134_entryid.162_likecms.html

MicroCapital, February 7, 2014, “Sanad Fund for MSE Loans $500k to Reef Finance in Palestinian Territories for On-Lending to Rural Clients,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-loans-500k-to-reef-finance-in-palestinian-territories-for-on-lending-to-rural-clients/

MicroCapital, July 24, 2013, “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, June 13, 2013, “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, February 1, 2011, “responsAbility Social Investments AG of Switzerland Launches responsAbility Ventures I, a Venture Capital Fund that Invests in Companies Aiming for Development Impact,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-ag-of-switzerland-launches-responsability-ventures-i-a-venture-capital-fund-that-invests-in-companies-aiming-for-development-impact/

MicroCapital Universe Profile: State Secretariat of Economic Affairs (SECO) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Swiss+State+Secretariat+of+Economic+Affairs+%28SECO%29

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

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