The Sanad Fund for MSME (Micro Small and Medium Enterprises), a provider of loans and equity to financial institutions in the Middle East and North Africa, recently announced a partnership with Albaraka, a Moroccan microfinance institution (MFI), through which Sanad will loan Albaraka USD 10 million with the goal of supporting micro- and small enterprises.
As of 2015, Albaraka reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 141 million, a gross loan portfolio of USD 114 million, approximately 144,000 active borrowers and a return on assets of 1.2 percent. It does not offer deposits. As of March 2016, Sanad has raised total investor commitments of USD 186 million.
By Petra Barbu, Research Associate
About Sanad Fund for Micro Small and Medium-Sized Enterprises (MSME)
The Sanad Fund for Micro Small and Medium- Sized Enterprises (MSME) is a private-public partnership that provides “medium- and long-term” loans and equity to financial institutions in the Middle East and North Africa with the intent of strengthening MSMEs as well as local financial markets. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW), and it is funded by the European Union (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 on investing in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of March 2016, Sanad has raised total investor commitments of USD 186 million.
Albaraka, founded in 1996 under the name Fondation pour le Développement Local et le Partenariat (FONDEP), is a Moroccan microfinance institution (MFI) that obtained authorization to provide microcredit services in 2000. It provides loans and technical assistance to low-income individuals with the aim of promoting job creation and financial inclusion. As of 2015, Albaraka reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 141 million, a gross loan portfolio of USD 114 million, approximately 144,000 active borrowers and return on assets of 1.2 percent. It does not offer deposits.
Sources and Additional Resources:
 Information provided directly to MicroCapital by the Sanad Fund and Albaraka
 MicroCapital Universe: Sanad Fund
 MicroCapital Unvierse: Albaraka
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
- MICROCAPITAL BRIEF: Sanad Fund for MSME Announces $10m Loan to Egyptian AlexBank
- MICROCAPITAL BRIEF: FMO Investing $15m in Equity in Sanad Fund for MSME for On-lending in the Middle East, North Africa
- MICROCAPITAL BRIEF: Sanad Fund for MSME Lends $1.5m for Women’s Enterprises in Palestine via Microfinance Institution Asala
- MICROCAPITAL BRIEF: Sanad Fund for MSME Lends $20m to Lebanon’s Byblos Bank
- MICROCAPITAL BRIEF: AgroCenta of Ghana Wins $20k Fincluders Startup Challenge for Online Agricultural Marketplace