Rawafed+ - Support Programme for the Post-crisis Recovery of Tunisian MSMEs

Micro, small and medium-sized enterprises (MSMEs) have been hard hit by the economic situation in Tunisia, undermined by political instability and the Covid-19 crisis. They are currently desperately in need of financing to boost their activities. However, liquidity constraints in the banking system and the risk aversion of financial institutions considerably limit their access to credit. This financing gap is estimated at almost 16% of GDP. 

To address this issue, the Tunisian government has set up a recovery plan based on credit lines to MSMEs, with support from international partners, including the European Investment Bank (EIB) and the World Bank. These mechanisms aim to:

• Facilitate the allocation of new loans
• Restructure the debt of viable enterprises
• Safeguard jobs
• Promote investment

In this perspective, the European Union is supporting the operationalisation of the EIB credit line through the “Support Programme for the Post-crisis Recovery of Tunisian MSMEs”.

The Rawafed+ project, an initiative to support the programme for the post-crisis recovery of Tunisian MSMEs, is helping to strengthen the resilience of Tunisia’s MSME fabric with the aim of boosting sustainable and inclusive economic growth.

It is based on four lines of action: 

1. Technical assistance to financial institutions: support to the Tunisian Central Bank and partner financial institutions for the operationalisation of the EIB credit line (€170 million).
2. Investment premiums for green and social impact investing for the beneficiary MSMEs of the European Investment Bank.
3. Technical assistance to MSMEs with the creation of two technical assistance mechanisms to help MSMEs prepare their applications for financing: a centre of expertise to assist SMEs and a programme to assist microenterprises delivered by support structures.
4. Awareness-raising and financial culture: deployment of information, awareness-raising and training activities to strengthen the financial culture of entrepreneurs and increase their capacity to access financing.

At project completion: 

• The capacities of financial institutions and the Central Bank of Tunisia have been permanently strengthened for the management and allocation of loans to MSMEs
• SMEs manage to obtain investment premiums to finance projects with a social and environmental impact
• Information about opportunities for financing and support for MSMEs is simplified and disseminated
• MSMEs are supported and strengthened in terms of obtaining conventional and/or alternative financing
• The support structures for the companies selected have a more extensive range of technical assistance to increase access to conventional and/or alternative financing

The Rawafed+ project targets various actors in the ecosystem of the Tunisian economy:

• Tunisian MSMEs, with a focus on those:
  • Located outside Greater Tunis  
  • Managed or founded by women or young people  
  • Operating in green or environmental impact sectors
  • With high potential for job creation   
• The Project Management Unit of the Central Bank of Tunisia
• Financial institutions, including private banks, public banks and leasing companies
• Business support structures