- EBRD providing €24 million loan to Tunisie Leasing and Factoring
- Funds to support local small businesses
- Leasing provides an alternative to address funding gaps
The EBRD has broadened access to finance for small and medium-sized enterprises (SMEs) in Tunisia by providing a €24 million loan to Tunisie Leasing and Factoring, the country’s largest leasing company. This will mark the EBRD’s second engagement with Tunisie Leasing and Factoring after an earlier loan in 2014.
Tunisie Leasing and Factoring was the first company to establish leasing operations in Tunisia and has a strategic focus on supporting small businesses. The company is particularly well-placed to use the EBRD’s funding and so encourage access to finance for an important sector of the Tunisian economy.
There are over 80,000 SMEs in Tunisia; they are responsible for 40 per cent of GDP and employ more than half the population. The success of the country’s economy largely relies on the success of its small businesses, but access to funding and liquidity remains a serious constraint on their growth.
The EBRD loan will allow Tunisie Leasing and Factoring to continue growing its network across the country and reaching SMEs in regions less well-covered by competitors. Supporting access to finance for SMEs has been identified as a strategic priority by both the government of Tunisia and the EBRD.
Since it began operations in Tunisia in 2012, the EBRD has invested €840 million across 38 projects in the country and provided technical assistance to nearly 800 SMEs, two thirds of which are in the regions. The Bank’s investments aim to support Tunisia’s competitiveness by opening markets and strengthening governance, promote economic inclusion for women, young people and those living in remote areas, strengthen the financial sector’s resilience, and support Tunisia’s green economy transition.