MICROCAPITAL BRIEF: Sanad Fund for MSME Announces $10m Loan to Moroccan Microfinance Institution Albaraka

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.

About Albaraka

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:

[1] Information provided directly to MicroCapital by the Sanad Fund and Albaraka

[2] MicroCapital Universe: Sanad Fund

[3] MicroCapital Unvierse: Albaraka

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