MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $7m to Enda Inter-Arabe for On-Lending to Micro-, Small Enterprises (MSEs) in Tunisia

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, is lending TND 11 million (USD 7 million) to Enda Inter-Arabe, a Tunisian financial services provider and arm of Senegal-based non-governmental organization Enda Third-World. Enda Inter-Arabe plans to use the proceeds of this loan for on-lending to Tunisian micro- and small enterprises (MSEs) in an effort to create new job opportunities and further Tunisia’s economic development.

The loan also includes a technical assistance program for the development of new financial products tailored to the needs of rural borrowers. This will be funded with EUR 230,000 (USD 317,000) from the Southern and Eastern Mediterranean (SEMED) Multi-donor Account, an EBRD facility account that includes donations from countries such as Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Sweden and the United Kingdom.

As of December 2013, Enda Inter-Arabe reported a gross loan portfolio of USD 106 million and approximately 231,000 active clients. As of 2012, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) Market total assets of USD 95.3 million. Enda Inter-Arabe does not take deposits. Enda Third World is active in 14 countries in Africa, Eurasia and Latin America. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries in Central Asia, Eastern Europe and North Africa.

By Tejas Jain, Research Associate

About Enda Inter-Arabe

Enda Inter-Arabe was founded in Tunisia in 1990. It is a non-governmental organization and a member of Senegal-based Enda Third-World, an international organization that is active in various development efforts in 14 countries in Africa, Eurasia and Latin America. It offers financial services such as loans and loan-insurance as well as non-financial services such as training in simple accountancy and marketing, excursions, exhibitions, networking events and counseling (in areas including legal, health, social security and public services). As of December 2013, Enda Inter-Arabe reported a gross loan portfolio of USD 106 million and approximately 231,000 active clients. As of 2012, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) Market total assets of USD 95.3 million. Enda Inter-Arabe does not take deposits.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in Central Asia, Eastern Europe and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources:

European Bank for Reconstruction and Development Website, “EBRD supports microfinance in Tunisia,”
http://www.ebrd.com/pages/news/press/2014/140318b.shtml

MicroCapital Story, March 17, 2014, “European Bank for Reconstruction and Development (EBRD) Considers $21m Loan to Compagnie Internationale de Leasing (CIL) for Micro-, Small and Medium-sized Enterprises (MSMEs) in Tunisia,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-21m-loan-to-compagnie-internationale-de-leasing-cil-for-micro-small-and-medium-sized-enterprises-msmes-in-t/

MicroCapital Story, February 13, 2014, “responsAbility Loans $20m to Microlender Enda Inter-Arabe of Tunisia,”
https://www.microcapital.org/microcapital-brief-responsability-loans-20m-to-microlender-enda-inter-arabe-of-tunisia/

MicroCapital Story, July 24, 2013, “Sanad Fund for MSME Loans $6m to Enda Inter-Arabe of Tunisia for Young Entrepreneurs, Micro, Small, Medium-sized Enterprises in Rural Areas,”
https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-loans-6m-to-enda-inter-arabe-of-tunisia-for-young-entrepreneurs-micro-small-medium-sized-enterprises-in-rural-areas/

MicroCapital Universe Profile: Enda Inter-Arabe
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Enda+Inter-Arabe

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more athttp://www.microcapital.org/products-page/

Similar Posts: