The SANAD Fund for MSME (SANAD) has provided a senior loan of € 10 million to Arab Tunisian Lease (ATL) to expand access to long-term financing for small and medium enterprises (SMEs) in Tunisia.
Through the facility, the partners aim to support local businesses in continuing their operations 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 key to employment and income generation but which often faces difficulties accessing suitable finance. As the third largest leasing institution in the country, ATL is well positioned to support SANAD in the fund’s endeavor to expand financial inclusion to underserved groups.
This includes rural entrepreneurs: More than one-third of SANAD’s previous loan to ATL was used to facilitate leases to small businesses in remote areas. The new investment especially takes aim at alleviating the financing bottlenecks faced by many smaller businesses as a result of the COVID-19 crisis.
Established in 2011, the SANAD Fund for MSMEs finances micro, small and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD’s investors include the KfW Development Bank and the European Union.
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