MICROCAPITAL BRIEF: Sanadcom Launches to Serve SMEs in Jordan, Backed by Microfund for Women, GMS Ventures and Investments

Sanadcom for Business Finance, a lender to small and medium-sized enterprises (SMEs) in Jordan, recently launched with two “anchor” investors: Microfund for Women, a Jordanian microfinance institution, and GMS Ventures and Investments, a subsidiary of Jordan’s GMS Holdings. Sanadcom has enjoyed “additional equity funding and support” from the Sanad Fund for MSME (micro-, small and medium-sized enterprises), a European investor in North Africa and the Middle East, and Women’s World Banking (WWB) Capital Partners, an affiliate of the US-based NGO WWB.

Sanadcom has 400 clients, whose loans range from JOD 10,000 (USD 15,000) to JOD 75,000 (USD 100,000). A fifth of the institution’s borrowers are women, as are half of its loan officers and a quarter of its senior managers.

Ghiath Sukhtian, the Chairman of Sanadcom, explained that “we aspire to uphold our strong social mission, empower entrepreneurs with a focus on women, and create job opportunities in Jordan whilst generating sustainable returns.”

Dr Daniela Beckmann, the Board Chairperson of Sanad, said Sanadcom will serve “entrepreneurs that have graduated from microfinance programs and require larger financing lines and backing to grow and develop their businesses.” Referring to Sanad, she added, “this speaks to the heart of our mission.” 

Microfund for Women offers lending, insurance, business development and social services but does not take deposits. It has total assets of USD 104 million, 138,000 customers and 58 branches as of 2017.

GMS Holdings has investments on four continents. Financial data on the firm are not available.

Sanad was founded in 2011 and is domiciled in Luxembourg. An initiative of German development bank Kreditanstalt für Wiederaufbau (KfW), it is funded by KfW, Germany’s GLS Bank and the EU, as well as development finance institutions of the Austrian, German and Swiss governments. Sanad invests in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of 2016, the fund has raised total investor commitments of USD 186 million. It is advised by Germany’s Finance in Motion, which manages assets valued at EUR 1.6 billion (USD 1.7 billion) as of 2017.

Also as of 2017, WWB Capital Partners has USD 50 million under management, with which it takes stakes in “women-focused financial institutions.” The entity, which has 27 investors, is managed by WWB Asset Management, another affiliate of WWB, in partnership with Triodos Investment Advisory and Services, an affiliate of the Netherlands’ Triodos Bank.

Sources and Additional Resources

Information provided directly to MicroCapital by Finance in Motion

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