The SANAD Fund for MSMEs granted a €10-million senior loan to Arab Tunisian Lease (ATL) to expand access to long-term financing for small and medium enterprises (SMEs) in Tunisia.
Through this facility, the partners aim to help local businesses continue their activities despite the economic difficulties caused by the coronavirus pandemic.
Leasing is an important source of investment financing for SMEs, a segment of the Tunisian economy that is essential for job and income creation but often faces difficulties in accessing appropriate financing.
As the third largest leasing institution in the country, ATL is well positioned to support SANAD in its efforts to extend financial inclusion to underserved groups.
This includes rural entrepreneurs: more than one-third of SANAD’s previous loan to ATL was used to facilitate leasing to small businesses in remote areas.
In particular, the new investment aims to reduce the financial bottlenecks faced by many small businesses as a result of the COVID-19 crisis.
Established in 2011, the SANAD Fund for MSMEs finances micro, small, and medium-size enterprises and low-income households in the Middle East and North Africa through qualified local lenders.
SANAD promotes economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technology.
SANAD’s investors include the KfW Development Bank and the European Union.