MSME loan programme to promote employment

completed

The project addresses one of the core problems of the Tunisian financial sector, the lack of capital resources for micro, small and medium-sized enterprises (MSMEs). As in other countries in the region, MSMEs provide a large proportion of jobs in Tunisia, which is why they are of great economic and social importance. Due to the particular relevance of MSMEs for the future development of the country, facilitating their access to financing opportunities is firmly anchored in the Tunisian government's development strategy. The FC measure includes a low-interest loan (main measure) of up to EUR 50 million to the Republic of Tunisia, represented by the Ministry of Foreign Affairs. The project sponsors are financially solid Tunisian commercial banks with a great interest in MSME financing (downscaling). In addition to the low-interest loans, personnel support (accompanying measure) of EUR 6.45 million is being provided to support the partner banks through targeted consulting assignments in the sustainable development and expansion of their MSME business and to enable MSMEs to become bankable and to introduce them to the formal banking sector through suitable workshops. The aim of the FC measure is the sustainable provision and use of a needs-based range of financial services for MSMEs in the partner banks. The project thus contributes to improving the access of Tunisian MSMEs to external capital, which will enable them to expand their business activities and ultimately generate new jobs, and thus contributes to achieving the overarching development policy goal of sustainably reducing poverty by creating and securing jobs and expanding and deepening the Tunisian financial sector. The target group are Tunisian micro, small and medium-sized enterprises (MSMEs), which have access to capital to enable them to expand their business activities and generate additional income, as well as indirectly employees and their families.