Access to Credit Remains Limited in Tunisia Despite Microfinance Efforts
Despite the measures taken by microfinance institutions in Tunisia to establish financing systems adapted to the population's needs, credit remains restricted. High interest rates and often perceived as constraining financing conditions continue to deter many borrowers. This is the finding of a recent report published by Tunisie Valeurs, a stock exchange intermediary, titled "The Microfinance Sector in Tunisia: State of Play and Perspectives".
Limited Coverage of Rural Areas
Tunisie Valeurs highlights that in 2023, Microfinance Institutions (MFIs) constituted as Joint-Stock Companies (SA) had only 218 agencies, leaving rural areas insufficiently covered.
Difficulty in Accessing Low-Cost Financing
Moreover, due to the prohibition on collecting deposits and accessing refinancing from the Central Bank, these institutions face difficulties in accessing low-cost financing sources. This constraint limits their ability to provide credits at advantageous conditions.
Contrast with Microcredit Associations
Unlike Microcredit Associations (AMC), which benefit from preferential refinancing via the Tunisian Solidarity Bank (BTS), MFIs must turn to refinancing from local banks or international funds specialized in microfinance, often at high rates. To overcome these constraints, MFIs are intensifying their recourse to the domestic bond market.
Bond Market Emissions
Over the past two years, they have established themselves as recurrent issuers, with amounts reaching 116 million dinars in 2023 (15% of the corporate bond market) and 123 million dinars in 2024 (27% of private bond emissions).
Recommendations for a More Effective Refinancing System
In this perspective, Tunisie Valeurs estimates that the development of an effective and sustainable refinancing system for MFIs requires harmonizing financing conditions. This would guarantee a larger access to adapted and sustainable resources, conducive to sector growth.
Incentives for Local Banks and Foreign Financing
The stock exchange intermediary recommends setting up incentive mechanisms to encourage banks to refinance MFIs, for example, through guarantee funds or opening up to foreign financing, capital, good practices, and quality requirements.
Redirecting Local Savings towards Microfinance
Tunisie Valeurs also proposes redirecting local savings towards the microfinance sector through the creation of Specialized Investment Companies (SICAR) or specialized funds, and calls for a regulatory framework overhaul to allow, in the long run, direct refinancing of MFIs via collected savings, similar to banks.
