New Financing Opportunities for Tunisian SMEs
In an industrial area of inland Tunisia, a business leader is hesitant. His investment project is ready, and so are the machines. However, he is missing one crucial element: financing.
A New Era for Tunisian SMEs
In 2024, a new door opened for thousands of Tunisian SMEs. Tunisia and the European Investment Bank (EIB) signed a €170 million credit line, a strategic agreement that sends a strong signal for economic recovery. This credit line is supported by the European Union and implemented in partnership with the French Development Agency (AFD) and Expertise France. Its objective is clear: to boost productive investment, create jobs, and support neglected regions.
Prioritizing Small and Medium-Sized Enterprises
Priority is given to small and medium-sized enterprises (SMEs) with fewer than 250 employees and that are affiliated with a partner financial institution (PFI). The Central Bank of Tunisia administers the credit line, which can provide loans of up to 10 years with competitive interest rates and advantageous conditions that must be fully passed on to SMEs.
Participating Financial Institutions
A total of six financial institutions are expected to participate in the program. Currently, Amen Bank, Banque de Tunisie (BT), and TLF have finalized the process and are operational. SMEs that meet the eligibility criteria can now approach these institutions to inquire about and submit their financing applications.
Risk Analysis and Guarantee Requirements
It is worth noting that risk analysis is the exclusive responsibility of the partner banks. The EIB does not impose specific guarantee requirements. These aspects are to be negotiated directly between the SME and the financial institution.
Eligibility Criteria for Financial Institutions
The eligibility of financial institutions is based on several criteria, including:
- A non-performing loan ratio of 17% or less for public banks and 12% or less for private financial intermediaries
- A provision coverage ratio for non-performing loans of more than 65%
- Proven ability to work with international donors, including compliance with reporting requirements and environmental and social standards
- Compliance with the EIB's Know Your Customer (KYC) procedures
- Absence of any exclusion circumstances from the EIB at the time of the agreement
Additional Support through the Rawafed+ Grant
SMEs that have obtained financing under this credit line may also be eligible for the Rawafed+ grant, a Team Europe initiative. This grant provides additional support to the EIB's "Tunisia - Economic Recovery" credit line and targets companies engaged in high-impact projects, particularly those that promote employment for women and young people or are located in priority regional areas.
Priority Regions
Projects targeting one of the 12 priority regions are particularly encouraged. These regions include:
- Béja
- El Kef
- Gafsa
- Jendouba
- Kairouan
- Kasserine
- Kébili
- Mahdia
- Sidi Bouzid
- Siliana
- Tataouine
- Zaghouan
This new credit line and the Rawafed+ grant offer a unique opportunity for Tunisian SMEs to access financing and support their growth and development, ultimately contributing to the country's economic recovery.
