Client presentation
The Financial Center for Entrepreneurs (CFE) Tunisia is a microfinance institution that offers loans ranging between TND 3,000 and TND 40,000 (between EUR 900 and EUR 12,000). CFE has a significant impact on improving the living conditions of its clients and creating jobs through financial inclusion. Since 2015, CFE has helped create and maintain 5,900 jobs in Tunisia. CFE Tunisia’s clients are very small entrepreneurs seeking short-term microcredits and microentrepreneurs requiring loans for higher amounts to support larger investments. Microenterprises and small businesses currently account for 80% of CFE’s portfolio.
Project description
During the current health crisis, PROPARCO is supporting CFE’s action to finance MSMEs by allocating a EUR 5m ARIZ guarantee. This guarantee has been allocated under the Choose Africa Resilience initiative and will facilitate access to financing for underserved MSMEs, mainly in the following sectors: tourism and catering, the craft and manufacturing industries, education, health, agriculture, retail trade and local services.
Project impact
This new Choose Africa Resilience guarantee will provide CFE Tunisia with a risk-sharing instrument to support the growth in its MSME loan portfolio during the health crisis. These loans are intended to strengthen the capacities of microentrepreneurs to weather the crisis.