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- Loan of up to TND 15 million to Enda Tamweel
- Facility will benefit underserved youth-led private businesses in Tunisia
- Financing is completed by a comprehensive package of technical assistance and blended concessional finance funded by the EU
The European Bank for Reconstruction and Development is joining forces with the European Union (EU) to support the development of the private sector in Tunisia through a loan of up to TND 15 million to Enda Tamweel, the country’s oldest and largest microfinance institution.
This financing, provided under EBRD’s Youth in Business programme (YiB), will be on-lent to local micro, medium and small enterprises (MSMEs) owned or led by entrepreneurs under the age of 35. Although MSMEs contribute approximately 90 per cent of Tunisia’s GDP, they face a significant financing gap, with only ca. 40 per cent having access to debt financing.
The loan is accompanied by a comprehensive package of technical assistance and blended concessional finance, funded by the EU through its European Fund for Sustainable Development Plus (EFSD+) and the EBRD’s Southern and Eastern Mediteranean Multi Donor Account (SEMED MDA). Additionally, Enda Tamweel’s sub-borrowers will benefit from training opportunities under the EBRD’s Advice for Small Businesses programme (ASB). These interlinked components aim to demonstrate that Tunisian MSMEs are a viable investment opportunity for the country’s financial sector and a unique vehicle to advance financial inclusion.
Enda Tamweel is a Tunisian microfinance institution providing financial services and ancillary non-financial services in partnership with Enda Inter-Arabe to empower underserved communities and advance its strong social mission.
EFSD+ was established in June 2021 and offers EU partner countries assistance with key investments through grants or financial guarantees. In this way, the EU mobilises additional financial resources for sustainable development from the public and private sectors. EFSD+ has a total global guarantee capacity of €39.8 billion for the period from 2021 to 2027, of which €22.5 billion will be used in the EU’s enlargement and neighbourhood regions.
Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €2.6 billion in 82 projects across the country and 67 per cent of which are in the private sector.