Enda Tamweel: An equity investment to support the development of Tunisia’s leading microfinance institution

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femme, tunisie, microfinance, enda tamweel
This financing is PROPARCO’s 2nd operation with the microfinance institution and will allow Enda Tamweel to support a larger number of microentrepreneurs in Tunisia, with the specific aim of supporting women and rural communities, and thereby of contributing to the financial inclusion of populations excluded from the traditional financial system.
Client presentation

Building on over 20 years’ experience, Enda Tamweel is the leader on Tunisia’s microfinance market, with over 80% of market share.
Since 1995, Enda Tamweel has allocated over 2.8 million microcredits to 730,000 microentrepreneurs. At the start of 2018, the institution was operating via a network of 86 branches and 3 mobile branches, served 337,000 microentrepreneurs nationwide with an outstanding amount of some TND 510m, and employed some 1,700 people.

Project description

The reserved capital increase of TND 72m, in which Proparco is participating (TND 17.5m), will allow Enda Tamweel to mobilize more debt to serve more microentrepreneurs in Tunisia and meet their increased needs for microcredit. It will thereby contribute to financial inclusion for populations excluded from the traditional financial system. Furthermore, an ongoing technical assistance budget will support the MFI in the definition and implementation of its “gender” strategy, which aims to promote access to microcredits for women.  Enda Tamweel will also be assisted in 2020 with improving its risk management mechanism. 

In 2021, Proparco also purchased a portion of the shares of a co-shareholder, increasing its percentage of shares in Enda Tamweel from 9.7% to just under 10%.

This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy. 

This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).

Project impact

The project will support financial inclusion for populations with little access to banking services in Tunisia. Indeed, Enda is proceeding with an effective targeting of poor populations excluded from financial services. PROPARCO’s operation will allow some 82,000 clients to benefit from a microfinance product.
In terms of service provision and prices, Enda’s positioning is also in line with its social mission: the range of credit products is diversified and flexible, allowing it to serve microentrepreneurs’ needs at various stages in the development of their activities and in various agricultural and non-agricultural economic sectors.
The development of mobile banking solutions and the mobile branch also meet the objective of targeting remote populations and reducing indirect costs for clients.
Finally, in terms of client protection, the institution has improved its practices over the years. It now applies the highest international standards and obtained the certification in 2015.

Date of signature of the project
18 184 072 Euros
Amount of funding
TND 17.5m Equity investment and EUR 40,000 of Technical Assistance. In 2021, TND 1.2m buyback of a portion of the shares of a co-shareholder.
Financing details
ENDA Tamweel

This information is given at the time of signature, without prejudice to any developments in the operation/project