Tunis, Tunisia, August 6, 2012—IFC,
a member of the World Bank Group, is making a local currency loan worth
$7 million to Tunisian microfinance institution Enda Inter-Arabe to help
the organization increase its lending to micro-enterprises, especially
those owned by women, spurring economic development.
The dinar-denominated loan will contribute
to Enda Inter-Arabe’s plans to reach out to 400,000 clients by end-2015,
and to double its current loan portfolio to over $140 million. IFC will
also help build Enda Inter-Arabe’s institutional capacity through a package
of advisory services that include training in corporate governance and
in risk management. Enda Inter-Arabe is presently Tunisia’s sole private
microfinance institution and the majority of its clients are women.
"Our long partnership with IFC
has helped us greatly in financing micro-projects all over the country,
70 percent of which are owned by low income women,” said Essma Ben Hamida,
Enda Inter-Arabe Executive Director and Co-Founder. “Now, IFC’s advisory
services package will help us transform from a non-government organization
into a microfinance company, allowing us to reach even more people."
Since 2007, IFC has worked with Enda
Inter-Arabe to provide small loans to entrepreneurs and micro-enterprises
in Tunisia. Enda has 220,000 clients, up from 63,000 in 2007, and
it has 67 branches across Tunisia.
"Micro and small businesses are
a key driver of economic growth and sustainable development,” said Antoine
Courcelle-Labrousse, IFC Country Manager in Tunisia. ”Our support to Enda
Inter-Arabe will help generate jobs and provide more economic opportunities
IFC will provide Enda Inter-Arabe, whose
portfolio stands at $80.6 million, with financing over five years. Such
long-term financing has become difficult to mobilize in Tunisia, especially
for NGOs. This investment is part of IFC’s efforts in Tunisia to create
jobs, support women in business, help smaller companies and make the country’s
economy more competitive.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
About Enda Inter-Arabe
Enda Inter-Arabe is the first MFI that
introduced best practice microfinance to Tunisia in 1995. Since then it
has disbursed over a million micro loans ($600 millions) reaching out to
350,000 low income micro-entrepreneurs in urban and rural Tunisia.