The Directorate for Development and Cooperation (Lux-Development), an agency of the government of Luxembourg, and the European Investment Bank (EIB), the European Union’s lending institution, recently unveiled MicroMED Tunisia, a EUR 4 million (USD 5.2 million), five-year initiative intended to aid the development of the microfinance sector in Tunisia. Appui au Developpement (ADA), a Luxembourg-based nonprofit organisation, has been chosen to implement the project. At the EIB’s10th Facility for Euro-Mediterranean Investment and Partnership (FEMIP) Conference, which is dedicated to small and medium-sized enterprises (SMEs), EIB announced that MicroMED Tunisia was conceived in response to a request from the Tunisian government for support in its efforts to revive the country’s microfinance sector after the revolution. The goals of the project are to improve the microfinance regulatory environment, build capacity among microfinance institutions, increase transparency in the sector and facilitate the emergence of inclusive financial products, especially those designed for young entrepreneurs. Robert Wagener, Chairman of ADA, restated the organization’s commitment to the project as follows “MicroMED is a new step for ADA, and we are happy to share our expertise in terms of funding, capacity building and innovation with inclusive finance players in Tunisia.”
In the last 10 years, the Luxembourg-based European Investment Bank (EIB) has committed over EUR 27 million (USD 35.2 million) to finance microfinance projects in the Southern and Eastern Mediterranean region. Lux-Development currently manages a portfolio of approximately EUR 60 million (USD 78 million).
By Chioma Okwudiafor, Research Associate
About European Investment Bank
The European Investment Bank (EIB), which was created in 1958, serves as the long-term lending bank of the European Union. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. The total subscribed capital of the Bank is EUR 232 billion as at December 2011.
About Luxembourg Directorate for Development and Cooperation (Lux-Development)
Lux-Development is the Luxembourg Agency for Development Cooperation. It is a private limited company with its head office in Luxembourg, and its shareholders are the Luxembourg Government (98%) and the Societe nationale des Credits a l’Investissement. Lux-Development focuses mainly on health, education and local development efforts that address issues such as clean water, sanitation, decentralization and microfinance.
About Appui au Developpement Autonome
Founded in 1994, Appui au Développement Autonome (ADA) is a nonprofit organization based in Luxembourg. ADA’s activities include developing new financial products, assisting in the capacity building of microfinance institutions (MFIs) and improving information on and awareness of microfinance activities. As of December 31, 2009, ADA reported total assets of EUR 3.7 million (USD 5.4 million). Newer financial data on ADA is not available as of 2012. ADA works with 25 microfinance institutions in Africa, Asia and South America.
About the Facility for Euro-Mediterranean Investment and Partnership (FEMIP)
The Facility for Euro-Mediterranean Investment and Partnership (FEMIP) was launched in October 2002 by the European Investment Bank with the goal of fostering the development of the private sector in the Mediterranean region. Its nine partner countries and territories include Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Libya, Morocco, Syria and Tunisia.
Sources and Additional Resources:
Finchannel.Com Story: The Government of Luxembourg, EIB and ADA launch microfinance initiative MicroMED Tunisia
http://finchannel.com/Main_News/Banks/117640_The_Government_of_Luxembourg,_EIB_and_ADA_launch_microfinance_initiative_MicroMED_Tunisia/
MicroCapital Universe Profile: European Investment Bank
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Investment+Bank+%28EIB%29
Microcapital Universe Profile: Appui au Developpement Autonome (ADA)
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Appui+au+D%C3%A9veloppement+Autonome+%28ADA%29
MicroCapital Story: December 22, 2009, MICROCAPITAL BRIEF: KNOW A MICROFINANCE FUND: Luxembourg Microbanking Intermediary Scheme Appui au Developpement Autonome (Luxmint ADA), Microcred Group, MicroCredit Enterprises, CRS CORDAID Microfinance Alliance Fund
https://www.microcapital.org/know-a-microfinance-fund-luxembourg-microbanking-intermediary-scheme-appui-au-developpement-autonome-luxmint-ada-microcred-group-microcredit-enterprises-crs-cordaid-microfinance-alliance-fund/
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