SANAD and CFE join forces to help Tunisian entrepreneurs tackle COVID-19 crisis

Luxembourg and Tunis, March 29, 2021 – The SANAD Fund for MSME (SANAD) and Centre Financier aux Entrepreneurs (CFE) have once again partnered to channel crucial liquidity to Tunisia’s micro and very small enterprise segment. With a fresh senior loan of EUR 600,000, the fund aims to strengthen CFE’s ability to provide emergency liquidity to entrepreneurs whose business operations have been hampered by the COVID-19 crisis.

Since its establishment as a greenfield microfinance institution in 2015, CFE has grown to become a major provider of microfinance in Tunisia. As micro and very small enterprises constitute a majority of income generation and employment in the country, CFE’s strong commitment to this segment makes it a strategic partner in enabling SANAD to generate positive economic impact through dedicated finance. The new loan will enhance CFE’s liquidity position and boost its efforts to ensure clients’ access to financing tailored to help them withstand the difficulties of the ongoing crisis. Moreover, as with the previous SANAD facility, the loan will also be part of a back-to-back structure with a local bank, whereby CFE will receive doubly leveraged local currency funding to decrease potential exposure to exchange rate risk.

SANAD Board Chairperson Dr. Daniela Beckmann said, “CFE has stood by local business owners in this tough period. Many entrepreneurs already face difficulties accessing formal financing in parts of Tunisia; CFE has not only shown its commitment to closing this gap in the past, it has also proactively approached micro and very small enterprises in recent months with solutions to help them overcome the challenges of the pandemic, including payment moratoria and specially designed emergency funding. We are proud to join forces with CFE once again to promote healthy business development in Tunisia.”

Mr. Kamel Saibi, General Manager of CFE, remarked, “In this period of economic crisis, SANAD has demonstrated its continuous support to our institution and indirectly to microentrepreneurs in Tunisia. This financing will be used by CFE exclusively to strengthen the capacity of our borrowers in order to permit them to overcome this difficult phase, not only through financial services but also through non-financial services.”

About SANAD 

The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries in sub-Saharan 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 strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D. 

An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital. 

For more information on the SANAD Fund for MSME, please visit: www.sanad.lu  
For more information on Finance in Motion, please visit: www.finance-in-motion.com  

About CFE

Le Centre Financier aux Entrepreneurs CFE Tunisia is a microfinance institution approved by the Ministry of Finance in April 2015. The institution stands out for its commitment to maintaining quality standards of customer service with a solid shareholder base and a strategic and technical partnership. CFE Tunisia has acquired a solid base enabling it to ensure the growth and development of its activity.

CFE’s mission is to increase the accessibility of professional financial services to micro and small entrepreneurs in order to contribute to sustainable prosperity, the emergence of the private sector and the improvement of the living conditions of Tunisians.

Media contact – SANAD

Nikki Eggers
Senior Officer, Marketing & Communications
Phone: +49 (0)69 271 035-470 
Email: press@sanad.lu

Media contact – CFE

Maroua Sebiaa
Senior Officer, Marketing & Communications 
Phone: +216 28 916 585
Email: maroua.sebiaa@cfe.com.tn