The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has announced its support of the Tunisia Credit Guaranty Facility (TCGF) in partnership with leading Tunisian financial institutions Amen Bank, ATB and Attijari Bank.

OPIC support will guarantee up to $50 million of lending through TCGF.

Elizabeth Littlefield, OPIC’s President and CEO, said: “A robust lending environment in emerging markets, specifically for SMEs, creates enduring employment and is one of the cornerstones of stable, inclusive economic growth.”

“Our cooperation in this facility with established Tunisian institutions will not only boost growth in Tunisia’s franchise sector, but also builds on previous similar OPIC-supported projects that created or sustained thousands of jobs in the region and produced lasting economic growth,” she said.

The TCGF will support the Tunisian economy by catalyzing lending to eligible Tunisian small and medium-sized enterprises (SMEs), with specific support to those employing franchise business models.

By addressing the shortage of credit available to Tunisian SMEs, this facility will stimulate growth in Tunisia’s private sector resulting in job creation and improved supply chains.

A similar OPIC-supported lending facility in the Middle East loaned over $132m to regional SMEs, supporting 10,000 local jobs in the process.

TCGF is expected to impact 250 SMEs over 10 years.

TCGF’s support to Tunisian businesses will enable them to acquire and operate franchises, produce goods and services to supply franchise businesses, and support growth of the broader SME market.

The Middle East Investment Initiative (MEII), a non-profit organization dedicated to stimulating economic growth through innovative finance options for SMEs, will manage the credit facility and work directly with local banks to support additional lending to Tunisian SMEs in local currency. 

Enclude, an advisory firm dedicated to building more inclusive and sustainable local economies, will partner with MEII to deliver technical assistance and capacity building to TCGF’s partner banks.