The SANAD Fund for MSME (SANAD) has provided a senior loan of USD 5 million equivalent in Jordanian dinar to the Jordan Trade Facilities Company (JoTF) for on-lending to local micro, small, and medium enterprises (MSME).

The investment aims to support the partners’ efforts to expand financial inclusion to this important segment of the Jordanian economy while simultaneously protecting MSMEs from exchange rate risk – an additional safeguard in an economic environment already made challenging by the COVID-19 outbreak.

JoTF is a specialized provider of business financing tailored to the needs of MSMEs. This focus has made it a strategic partner for SANAD since 2018 in the fund’s mission to promote economic growth and stability by channelling responsible finance to the region’s entrepreneurs. The new funding aims to provide much-needed liquidity to support these businesses in recovering from the coronavirus crisis; moreover, by offering the loans in local currency, SANAD and JoTF will ensure that borrowers’ cash flows are not additionally hampered by potentially destabilizing exchange rate fluctuations.

The SANAD Fund was established in 2011 to foster economic development and create jobs, particularly for youth, in the Middle East and North Africa by providing debt and equity funding to local financial institutions that lend money to support MSMEs and housing development. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building at partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.

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Press release

SANAD Fund – website