The European Bank for Reconstruction and Development (EBRD) is intensifying efforts to enhance access to finance for youth-led micro, small, and medium-sized enterprises (MSMEs) in Tunisia. Through its Youth in Business programme, the EBRD will provide a financing package of TND 15 million (€4.4 million) to Advans Tunisie, which will on-lend these funds to young entrepreneurs. This initiative targets an underserved segment of the Tunisian economy, bridging critical financing gaps across key sectors.
Swiss Support Strengthens Youth-Led MSMEs
The financing is complemented by donor support from the Swiss State Secretariat for Economic Affairs (SECO) via the Small Business Impact Fund (SBIF). The support focuses on capacity building, ensuring that youth-led businesses not only gain financial access but also develop essential skills for sustainable growth.
Focus on Digitalisation, Non-Financial Services, and Gender Inclusion
The project emphasizes digitalisation, non-financial services, and gender inclusion. Young entrepreneurs will benefit from tailored guidance provided through the EBRD’s Advice for Small Businesses programme, including workshops, mentoring, e-learning courses, and customised training. This holistic approach aims to empower MSMEs to scale operations effectively and inclusively.
Risk Mitigation and Financial Security
To enhance financial security, the financing package includes a first-loss risk cover guarantee of up to 12.5% under the EBRD SME Local Currency Programme. This mechanism reduces risk for Advans Tunisie and ensures the sustainability of loans extended to youth-led MSMEs.
Advans Tunisie: A Leading Microfinance Institution
Founded in 2013 by the international microfinance group Advans, Advans Tunisie operates in six countries across Africa and has established itself as a key player in Tunisia’s microfinance sector. Its collaboration with the EBRD will further strengthen its ability to serve young entrepreneurs and contribute to economic development.
EBRD’s Track Record in Tunisia
Since 2012, the EBRD has invested over €2.9 billion in 83 projects across Tunisia, with 65% of investments directed to the private sector. This ongoing engagement underlines the bank’s commitment to fostering sustainable private sector growth and supporting the next generation of entrepreneurs in Tunisia.
