EU-funded SANAD to support United Bank of Egypt in developing its Micro, Small and Medium Enterprise funding strategy
March 8, 2019
The SANAD Fund for MSME (SANAD), an impact investment fund advised by Finance in Motion, and the United Bank of Egypt (UBEG), a fully owned subsidiary of the Central Bank of Egypt, have announced their cooperation to support micro, small, and medium enterprise (MSME) funding in Egypt. Through SANAD’s international expertise in MSME financing and UBEG’s nationwide branch network, the partners aim to improve access to financial services for this important yet underserved sector of the Egyptian economy.
To address the challenges of this fundamental transformation, the SANAD Technical Assistance Facility (TAF) is providing UBEG with technical support in the form of specialist consulting, strategy workshops, and business planning. The approach includes a comprehensive review of the bank’s operating environment and its existing microfunding activities, while leveraging UBEG’s in-house expertise and local knowledge. By April 2019, the project team aims to deliver a refined five-year business plan covering strategic goals; key customer segments and geographic areas; a strategy for sustained outreach and profitability; an operational road map; and immediate next steps.
Established in 2011, the SANAD Fund for MSMEs finances micro, small and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD’s investors include the KfW Development Bank and the European Union.