Photo by Chermiti Mohamed on Unsplash
ABIDJAN, Ivory Coast – The African Development Bank (AfDB) has approved a €92.3 million financing package to support Tunisia’s Support Program for Business Competitiveness and Empowerment of the Population.
The financing consists of a €90 million loan from the Bank Group and a €2.3 million grant. This grant is from the Women Entrepreneurs Finance Initiative (We-Fi) Trust Fund. It falls under the Affirmative Finance Action for Women in Africa (AFAWA) initiative.
The CAP-Emplois program was designed by the Tunisian Ministry of Employment and Vocational Training. The program will roll out over four years, starting in November 2024. It aims to create jobs and promote economic inclusion. This is done through entrepreneurship and skills development. The program supports new business creation and the growth of existing businesses.
“A Bank survey in Tunisia identified constraints limiting entrepreneurship and business growth. This project helps entrepreneurs address these challenges,” said Malinne Blomberg, Deputy Director General of the Bank Group for North Africa and Country Manager for Tunisia.
Limited education is one of the constraints faced by Tunisian entrepreneurs. Market access, especially for informal businesses, is another constraint. They also face difficulty recruiting skilled employees. Lack of access to business support and finance is another major issue.
CAP-Emplois tackles these challenges through three interventions:
- Complementary integration training: Providing young people and job seekers with the skills needed for salaried jobs.
- Entrepreneurship support service, Souk At Tanmia 2.0: Expanding access to tailored support for different target groups, particularly women.
- Institutional capacity development.
The Tunisian government forecasts the program to create 118,900 formal jobs (76,600 directly and 42,300 indirectly). At least 50% of program beneficiaries receiving training and professional integration will be women. Additionally, 45% of businesses receiving support with establishment, formalization, and financing will be women-led. The We-Fi grant will reduce loan initiation fees for women-run businesses and increase women entrepreneur beneficiaries from 35% to 45%.
“This program strengthens our commitment to promoting employment in Tunisia, building on lessons learned from Souk At-Tanmia and innovations from the EInA platform,” Blomberg said. “The program aims to overcome business expansion and financial sustainability constraints and leverage private investment.”
