Enda Tamweel, a Tunisian microfinance institution, and the Netherlands Development Finance Company, which is also known by its Dutch acronym FMO, recently finalized a syndicated loan agreement denominated in Tunisian dinars equivalent to EUR 60 million (USD 65 million). Two thirds of the funding will flow to Enda via The Currency Exchange Fund (TCX) of the Netherlands from the following funds: The Africa Agriculture and Trade Investment Fund, which was initiated by the German government; ASN Microkreietpool, which is advised by Triple Jump of the Netherlands; the Microbuild I fund of US-based NGO Habitat for Humanity; and two funds managed by BlueOrchard of Switzerland, the BlueOrchard Microfinance Fund and the Regional Education Finance Fund for Africa.
Enda will use the loan to increase its lending for education, enterprise and housing. The target borrowers fall into one or more of the following categories: women, farmers, young people and those living in areas deemed “disadvantaged.” FMO will also deliver capacity-development support to Enda as it builds a digital payment system.
The Director of Financial Institutions at FMO, Huib-Jan de Ruijter, stated that FMO “fully supports Enda’s deeply rooted social mission, the main driver behind its impact and large outreach to Tunisian microentrepreneurs in rural and urban areas. Through this financing, Enda Tamweel and FMO are emphasizing their commitment towards financial and social inclusion in Tunisia.”
Enda was established in 1995 and offers financial services as well as vocational training, social clubs, financial education and business management support. As of 2018, Enda has 362,000 active clients and a loan portfolio of TND 600 million (USD 207 million). Of this portfolio, 59 percent is outstanding to women, and 27 percent has been lent to farmers. Young entrepreneurs make up 27 percent of the organization’s client base. Enda does not accept deposits.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private-sector institutions. The bank works toward the UN’s Sustainable Development Goals by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of 2019, the bank reported a portfolio of EUR 9.7 billion (USD 10.5 billion).
By Madigan Ruch, Research Associate
Sources and Additional Resources
Enda Tamweel homepage
http://www.endatamweel.tn
MicroCapital on FMO’s work in India
https://www.microcapital.org/microcapital-brief-fmo-considering-5m-investment-in-innoviti-payment-solutions-provider-of-loans-cashless-payments-to-msmes-consumers-in-india/
Africa Agriculture and Trade Investment Fund homepage
https://www.aatif.lu/
ASN Microkreietpool profile from Triple Jump
https://triplejump.eu/fund/asn-novib-microcredit-fund/
BlueOrchard Microfinance Fund homepage
https://www.blueorchard.com
TCX homepage
https://www.tcxfund.com/
Habitat for Humanity MicroBuild I webpage
https://www.habitat.org/impact/our-work/terwilliger-center-innovation-in-shelter/microbuild
Regional Education Finance Fund for Africa homepage
https://www.reffa.org
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
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