The European Union, the EIB, AFD Group and KfW announce a major joint investment of €270.9 million to support Tunisia's entrepreneurial ecosystem.
- Two credit lines worth €170 million and €80 million, and €10.5 million for the Dhamen Express guarantee facility, will be deployed to increase access to finance for MSMEs in Tunisia.
- At least 30% of the funds from the EIB and 35% of those from AFD will go to projects promoting social inclusion, targeting women, youth employment and less-favoured areas, as well as the green economy and climate resilience.
- €10.4 million in technical assistance will also be mobilised to support banks and MSMEs.
This initiative underscores the commitment of the European Union, the European Investment Bank (EIB), Agence Française de Développement (AFD) and Kreditanstalt für Wiederaufbau (KfW) to support projects that have a high social impact and promote the economic recovery of Tunisia’s micro, small and medium-sized enterprises (MSMEs), taking a Team Europe approach.
This Team Europe Initiative includes:
- the Tunisia Economic Recovery credit line from the EIB for €170 million, signed in March 2024
- an AFD credit line for €80 million, to be signed soon
- an initial contribution of €10.5 million from KfW for the Dhamen Express guarantee facility
- a total of €10.4 million in technical assistance, financed by the European Union (€8 million), the EIB (€1.5 million) and AFD (€900 000)
- implementation of the technical interaction between the funding from the EU and AFD by Expertise France, which will create a technical and financial support scheme for MSMEs to improve their access to finance.
This package of support will help boost the resilience of Tunisia’s MSME ecosystem. It will allow credit lines to be made available to intermediaries and MSMEs, in response to an economic challenge currently facing Tunisia: the access barriers to long-term financing experienced by its MSMEs. The funds will be made available to small firms through financial intermediaries invited to participate by the Central Bank of Tunisia.
Alongside the Tunisia Economic Recovery credit line, the EIB deploys risk-sharing instruments and provides complementary technical assistance under the EU-funded Trade and Competitiveness Programme. This programme, which specifically targets MSMEs in export sectors, helps develop value chains and strengthen Tunisian small business, for sustainable and inclusive growth.
EIB Vice-President Ioannis Tsakiris stated, “We are delighted to be a part of this joint initiative under the Team Europe umbrella. MSMEs play a key role in economic growth, and this initiative will make them better equipped to thrive and create sustainable jobs. By allocating a significant share of this funding to social inclusion, we are also helping to promote development that benefits everyone, and to build a resilient, inclusive economy.
Marcus Cornaro, EU Ambassador to Tunisia, added, “This initiative is a perfect example of the strong synergies between the EIB, AFD Group and the European Union that let us go above and beyond in our support, even in complex circumstances like those currently facing Tunisia. It is a tangible manifestation of our joint commitment to economic recovery that will finance the growth of Tunisia’s entrepreneurs, the main vector for creating decent jobs.”
Cécile Couprie, AFD Regional Director for North Africa, explained, “Having mobilised more than €700 million for Tunisia’s private sector in the last 30 years, AFD Group is continuing to develop this job-creating, growth-powering sector through the Team Europe Initiative. This initiative helps us address one of the major challenges for the Tunisian economy: access to finance for its SMEs. The project will promote consolidation in the Tunisian SME ecosystem, supporting economic recovery in an environment marked by the impact of multiple crises.”
Andrea Hauser, member of the KfW Board of Directors, said, “We are convinced that access to finance and guarantees are real obstacles to business development in Tunisia. We are pleased to provide a response to this, adding to the support from its Team Europe partners. With our contribution to the Dhamen Express guarantee facility, we are providing additional leverage to bolster the country's economic recovery.”
Background information
About the European Investment Bank
In Tunisia, the EIB finances projects with high economic and social impact in strategic sectors like education, urban development, transport and energy.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
About the European Union
The European Union is an economic and political union of 27 Member States. It is based on the values of respect for human dignity, freedom, democracy, the rule of law and respect for human rights, including the rights of people belonging to minorities. It works globally to promote the sustainable development of societies, the environment and economies, so that everyone can benefit.
Team Europe Initiatives are initiatives in which the European Union, the Member States, their development agencies and financial institutions, as well as the EIB and the EBRD join forces in pursuit of common, strategic policy objectives supported by enhanced strategic policy dialogue, and in close connection with other global EU initiatives: #Global Gateway, #Digital Europe and the #Green Deal.
The aim of this coordinated and collective process is to promote initiatives under the Team Europe banner with a transformative impact in partner countries at the regional or national level, as appropriate.
About AFD Group
AFD Group finances, supports and accelerates the transitions needed for a more just and resilient world. In this way, it helps implement France's policy on sustainable development and international solidarity. Together with our partners, we are building shared solutions with and for people in more than 160 countries, and in 11 French overseas departments and territories.
Our goal? To achieve economic development while preserving our shared wealth: climate, biodiversity, peace, gender equality, education and health. We are involved in more than 3 600 projects on the ground, furthering the commitment of France and its people to the UN Sustainable Development Goals. Towards a world in common.
About KfW
KfW, the German development bank, acts on behalf of Germany’s federal government. It supports reforms, infrastructure and financial systems, and promotes investment projects in developing countries and emerging economies. Its objectives include sustainably improving economic and social conditions for all, and reducing poverty. www.kfw.de