EBRD Boosts Youth Entrepreneurship In Tunisia With €4.4M Loan To Advans Tunisia For MSMEs

The European Bank for Reconstruction and Development (EBRD) is intensifying its efforts to improve access to finance for youth-led micro, small, and medium-sized enterprises (MSMEs) in Tunisia. Through its Youth in Business programme, the Bank is providing Advans Tunisie with up to TND 15 million (€4.4 million) to on-lend to MSMEs owned or led by young entrepreneurs. This initiative aims to enhance financial inclusion for a segment of the Tunisian economy that is often underserved and to help bridge the financing gap for entrepreneurs across important sectors.

The loan is supported by donor funding from the Swiss State Secretariat for Economic Affairs (SECO) under the Small Business Impact Fund, which is backed by a group of international partners including Ireland, Italy, Japan, South Korea, Luxembourg, Norway, Sweden, Switzerland, Taipei China, and the United States. This partnership strengthens the overall impact of the project and ensures resources are available to support young business owners effectively.

As part of the initiative, Advans Tunisie will receive support to build its capacity to serve young entrepreneurs more efficiently. The programme will focus on digitalisation, gender inclusion, and non-financial services. These services will be delivered through the EBRD’s Advice for Small Businesses programme, providing tailored guidance, training, workshops, mentoring, and e-learning courses specifically designed to help young entrepreneurs succeed. The financing package also includes a first-loss risk cover guarantee of up to 12.5 per cent under the EBRD’s SME Local Currency Programme, offering an additional layer of risk mitigation for the lender.

Advans Tunisie, founded in 2013 by the international microfinance group Advans, is a leading microfinance institution in Tunisia and operates in six countries across Africa. Since the EBRD began its operations in Tunisia in 2012, the Bank has invested more than €2.9 billion in 83 projects across the country, with 65 per cent of these investments directed to the private sector. This latest initiative reflects the EBRD’s commitment to supporting youth entrepreneurship, fostering financial inclusion, and promoting sustainable growth in Tunisia by helping young business leaders access the financing and guidance they need to thrive.