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Financial Systems, Risk & InclusionMiddle East · Syria
Community Microfinance: Syria
Microfinance: the power of the social contract
The engagement
Challenge to impact
01 · Challenge
In 2013/14, amid Syria’s prolonged conflict and economic collapse, access to financial services in rural areas disappeared almost entirely. Recognizing this urgent gap, the Integrated Livestock Development Project (ILDP), an initiative funded by the International Fund for Agricultural Development (IFAD), reintroduced a community-rooted microfinance model known as Sanadiq, meaning “sandbox.” The name symbolizes a space where the village collectively pools its resources to help one another: a social-financial sandbox fostering trust, inclusion, and self-reliance. In an environment where formal banking systems were paralyzed, Sanadiq offered a lifeline, enabling microloans, enterprise support, and financial dignity to the most vulnerable. To evaluate and strengthen this village-level innovation, IFAD engaged GG International’s Finance and Risk specialist Shaan Stevens, who conducted a comprehensive analysis of the program’s governance, financial sustainability, and legal viability.
02 · Strategy
Following a field-based fact-finding mission by GG International’s partner, AlHuda Center for Islamic Banking & Economics, Shaan Stevens led a strategic review of the Sanadiq model across Syria’s Latakia, Tartous, and Homs governorates. Key focus areas included:
03 · Transformation
Underpinned by Shaan Stevens’ policy recommendations, the IFAD-ILDP program recognized Sanadiq as:
04 · Impact
1
Reinforcing the “social contract,” where mutual accountability and communal enforcement effectively replace collateral.
2
Introducing a self-funding model by adjusting interest rates and retention percentages to ensure post-donor viability.
3
Maintaining regulatory flexibility by recommending that Sanadiq remain outside the formal banking system to preserve its simplicity and community-driven nature.
4
Mapping out digital inclusion pathways for long-term financial access once Syria’s infrastructure stabilizes.
5
A globally relevant template for community-driven finance
6
A cost-effective and low-risk model in high-risk zones,
7
A vehicle for empowerment, especially among women, youth, and remote communities.
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