African Development Bank announces $100 million financing package to promote entrepreneurship in Tunisia

The African Development Bank (AfDB) announced in a press release on Tuesday that its board of directors has approved a $100 million financing package for Tunisia to support entrepreneurship and job creation in the country.

Almost the entirety of the funding comes in the form of a loan from the Bank Group. A grant in the amount of $2.5 million will be given by the Women Entrepreneurs Finance Initiative to support women in the workforce.

The funds will be used for a program developed by the Tunisian Government called the Support Program for Business Competitiveness and Empowerment of the Population through Job Creation (CAP-Emplois). It is set to roll out this November and last four years.

The goal of the program is to support job creation and economic inclusion to improve living conditions. It purports to support new businesses as well as assist with growing existing businesses.

Tunisia’s entrepreneurial community is hampered by the low levels of education and access to markets, according to the AfDB. Small business owners also find it hard to recruit skilled workers and lack access to business support services and finance.

“The findings of a survey by the Bank in Tunisia show that established and potential entrepreneurs could create many jobs, but they are subject to structural constraints that hold back investment projects, productivity and growth. This project helps entrepreneurs to address these problems,” said Malinne Blomberg, Deputy Director General of the Bank Group for North Africa and Country Manager for Tunisia.

The Tunisian government believes the program would create 118,900 formal jobs – 76,600 directly and 42,300 indirectly. It says at least half of those who will receive training through the program will be women and 45% of the businesses receiving financing and help establishing themselves will be run by women.