2023-06-15 08:51:42
The rise in the use of microcredit speaks volumes regarding the success of microfinance, a sector that has grown considerably in recent years, registering an average annual growth of 19.7% between 2010 and 2021.
If the history of microfinance in Tunisia dates back to the 1960s, when the State worked, at the dawn of its independence, to empower and financially integrate the poor and vulnerable social strata through national programs supported by donors funds, the microcredit activity—the flagship product of microfinance—was only officially regulated in 1999, with the promulgation of an organic law that defines the terms and conditions for granting this type of credit in Tunisia.
But it was only from 2011 that the sector really took off, following the approval of the “Concerted vision for the microfinance sector in Tunisia”, which led to the establishment a regulatory framework organizing the activity of microfinance institutions.
Being a tool for financial inclusion, microfinance, and in this case microcredit, helps in the fight once morest poverty, since it allows the poorest to access financing without going through the restrictive conditions of banking financial institutions.
Microfinance, through its multiple products such as micro-insurance, micro-savings and micro-credit, contributes to the empowerment of precarious workers as well as to the improvement of the living conditions of the poorest. The hundreds of “success stories” of women and young entrepreneurs who, thanks to microloans, have been able to change their lives, testify to the real impact that microloans can generate on the socioeconomic situation of households.
Moreover, the number of microcredit beneficiaries continues to grow, bringing happiness to several thousand families. According to data published by the Microfinance Supervisory Authority (AMC), the total number of clients having been able to access initial financing increased from 46,971 in 2020 to 66,893 in 2022, a growth rate of 42.41. %. These figures also highlight the role played by microfinance institutions in improving access to financing for the poorest people, at a time when the health, economic and social crisis is hitting the poorest and vulnerable.
Strong growth and a consolidated role
The increase in the use of microcredit speaks volumes regarding the success of microfinance in Tunisia. And the figures are, in this sense, eloquent. According to a recent survey focusing on financial inclusion, the microfinance sector has grown considerably in recent years, registering an average annual growth of 19.7% between 2010 and 2021.
The percentage of Tunisians holding an account with an MFI has almost doubled in just three years, from 5% in 2018 to 9.7% in 2021. The survey results also highlighted the confidence enjoyed by MFIs among Tunisians. It is estimated that the latter are trusted by 49% of resident individuals and 48% of farmers.
The microcredit associations (AMC), of which there are 289, have also played an important role in the democratization of microcredit. Since the establishment of the system dedicated to AMCs in 1999, these associations which grant amounts of up to 10,000 dinars have granted more than 977,000 credits for a total amount of 1,252 million dinars, thus contributing to the improvement of living conditions of thousands of households lacking the necessary resources and guarantees.
It must be said that the fine performance of the sector has also been strengthened in recent years, thanks to measures taken by the Ministry of Finance as part of the national financial inclusion strategy. Among which we cite the improvement of procedures for obtaining external financing and the increase in the ceiling for microcredit from 20,000 to 40,000 dinars (for MFIs in the form of SA) and from 5,000 to 10,000 (for associations). of microcredits). But the sector can do even better, given its potential and above all given the opportunities offered to microfinance players in a context where access to bank financing is becoming tougher, especially for young people. Indeed, the number of people eligible for microcredits is estimated at 1.7 million, while all MFIs only serve 700,000 clients. This limited potential is partly explained by the refinancing difficulties encountered by microfinance players in Tunisia. To strengthen the role played by the microfinance sector in the progress of financial inclusion in Tunisia, the recent survey, which was carried out by the World Bank, recommends accelerating the structural reform of the sector which is currently underway. This reform involves the merger of microcredit associations into regional microfinance institutions and should have a significant positive impact on the governance and practices within these institutions. It would also help improve regulatory oversight and ultimately facilitate MFIs’ access to capital from local and international financial institutions.
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