AfDB Supports Tunisia’s SMEs With USD 50 Million Line of Credit
| AfDB Supports Tunisia’s SMEs with USD 50 Million Line of Credit | AfDB Supports Tunisia’s SMEs with USD 50 Million Line of Credit (Arabic Version) |
The Board of Directors of the African Development Bank (AfDB) on 13 July approved a USD 50-million line of credit in support of Tunisia’s Small and Medium Enterprises (SMEs), to help mitigate the funding challenges facing the country under difficult economic circumstances.
The joint funding with the World Bank, which is also contributing USD 50 million, brings the total amount to USD 100 million (about 137 million Tunisian dinars) for Tunisian SMEs. The Tunisian Central Bank will finance the SMEs through financial institutions based on pre-established criteria. This approach will help facilitate access to credit for the small and medium enterprises in all of the country’s regions.
To ensure that the support reaches economic operators who need it most, the loans will vary between 50,000 and 1,500,000 Tunisian dinars. This financing is in line with the transitional government’s economic strategy, which aims at revitalizing the economy by supporting the private sector and SMEs.
The line of credit will help maintain existing jobs and create new ones, especially among the youth and women, improve household incomes and government revenue. Entrepreneurs in viable economic sectors that require additional financing will be eligible to benefit from this line of credit.
The mobilization of substantial resources for SMEs will help alleviate the financial constraints caused by the country’s economic slow-down.
The African Development Bank will undertake regular supervision missions to ensure adequate disbursement of the funds as well as follow-up on related social and economic development issues. This joint-AfDB-World Bank support will ensure that the required environmental and social management
systems are in place, while promoting financial institutions best practices on credit and governance.
As an investor, I highly welcome such decision: it brings a glimmer of hope while the economic downturn-established since several years- is steadily escalating joblessness to a historic high. The AFBD can hardly meet the assigned goals unless to engineer an elaborated process ensuring rational and democratic access to this "bridging finance".
Hopefully, local bankers should never be entitled with the exclusive power to grant SME access to international credit lines. Past experience teaches how and for whom the benefit of such financial instruments is oriented and how limited the results were on the real economic sphere. I strongly believe that adequate information has to be channeled to all active SME mainly through internet, detailing how to apply for this credit. A qualified board has to be informed about each application and directly follow its progress to ensure that local bankers do not restrict this facility to a minority of privileged people.
Thanks again for supporting Tunisia.