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 agreed to grant a senior loan facility of USD 2 million to Al Majmoua, a Lebanese nongovernmental organization (NGO) that lends to microenterprises. Further details of the loan have not yet been released.
Al Majmoua, also known as the Lebanese Association for Development, reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 27.5 million in assets, return on assets (ROA) of 7.69 percent and return on equity (ROE) of 13.2 percent as of 2011. As of March 2013, Al Majmoua reports an outstanding loan portfolio of USD 33 million and 39,000 active borrowers. The institution does not accept deposits.
As of 2012, 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 Entwicklungsbank, with funding from the German government and the European Union.
By Jennifer Young, Research Associate
About Al Majmoua
Al Majmoua, also known as the Lebanese Association for Development, is a nongovernmental organization (NGO) that was launched as a microcredit program in 1994 by Save the Children, an organization that was founded in the United Kingdom in 1919 with the goal of aiding children affected by World War I. Save the Children remains partners with the organization. Al Majmoua aims to contribute to the well-being of low-income Lebanese people by offering them tools to become financially independent. As of year-end 2011, Al Majmoua reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 27.5 million in assets, return on assets (ROA) of 7.69 percent and return on equity (ROE) of 13.2 percent. As of March 2013, Al Majmoua reports an outstanding loan portfolio of USD 33 million and 39,000 active borrowers. The institution does not accept 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 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
Sanad Press Release, “SANAD and Al Majmoua Sign USD 2 million Loan Agreement to Support Lebanese Micro-entrepreneurs,” http://www.sanad.lu/Press-Releases—2013-06-05-SANAD-and-Al-Majmoua-sign-USD-2-million-loan-agreement-to-support-Lebanese-micro-entrepreneurs——_site.index..html_dir._siteid.67_nav._entryid.76_likecms.html
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 Story, January 15, 2013, “MICROCAPITAL BRIEF: responsAbility Social Investments Loans $1.5m to Al Majmoua (Lebanese Association for Development), $10m to Araratbank of Armenia,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-1-5m-to-al-majmoua-lebanese-association-for-development-10m-to-araratbank-of-armenia/
MicroCapital Universe Profile: Al Majmoua
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Al+Majmoua
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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