Photo credit EBRD
The European Bank for Reconstruction and Development (EBRD) and the European Union are injecting up to 15 million Tunisian dinars (TND) into Enda Tamweel, the nation’s premier microfinance institution. The funding is specifically designed to support micro, small, and medium-sized enterprises (MSMEs) led by entrepreneurs under the age of 35.
The loan, extended under the EBRD’s Youth in Business (YiB) programme, addresses a critical financing gap. While MSMEs form the backbone of Tunisia’s economy—contributing an estimated 90 per cent of the country’s GDP—only about 40 per cent of them currently have access to formal debt financing.
“This partnership is more than just a loan; it’s a vote of confidence in Tunisia’s next generation of business leaders,” an EBRD representative stated. The initiative aims to prove that youth-led MSMEs are not only viable investments but also a powerful catalyst for broader financial inclusion.
The capital is bolstered by a comprehensive support package, including technical assistance and concessional financing. This additional backing is funded by the EU through its European Fund for Sustainable Development Plus (EFSD+) and the EBRD’s SEMED Multi-Donor Account. Young borrowers will also gain access to training opportunities via the EBRD’s Advice for Small Businesses programme.
The recipient, Enda Tamweel, is a cornerstone of Tunisia’s social economy. In partnership with Enda Inter-Arabe, it has a long-standing mission to provide financial and non-financial services to underserved communities.
The EFSD+, the EU’s main financial arm for sustainable development investments, has a global guarantee capacity of €39.8 billion for 2021-2027, with a significant portion earmarked for neighbourhood regions like Tunisia.
Since commencing operations in Tunisia in 2012, the EBRD has become a key investor, channeling close to €2.6 billion into 82 projects, with the majority (67 per cent) directed toward strengthening the private sector. This new collaboration marks a continued commitment to fostering sustainable economic growth and opportunity in the country.
TunisianMonitorOnline (NejiMed – EBRD)
