The Tunisian Citizen Enterprises (CONECT) has announced a new €55 million credit line from Italy, aimed at supporting small and medium-sized enterprises (SMEs) across the country.
The initiative, announced as a way to boost regional development, has been met with both hope and skepticism from observers who fear the funds may not reach the businesses that need them most.
In partnership with the Italian Agency for Development Cooperation (AICS), CONECT will host information sessions in several governorates, including Jendouba, Sidi Bouzid, Mahdia, Sfax, and Kairouan. These sessions will provide project leaders with details on how to apply for the “55” financing line.
The credit line comes at a critical time for Tunisian SMEs, which make up over 90% of the national economy but often struggle to access bank credit. According to data from the Central Bank, high financing costs and significant bank margins have kept many small businesses outside the traditional financial system.
While the €55 million is a welcome boost, many observers believe it is a modest amount compared to the massive needs of Tunisian SMEs, which face issues with cash flow, technology, and access to foreign markets. The absence of a clear strategy to support beneficiaries with training or governance beyond the credit itself has also raised questions about the line’s overall effectiveness.
Although the choice of regions for the information sessions, particularly Sidi Bouzid and Kairouan, reflects a desire to reduce economic inequalities, similar initiatives in the past have faced problems with slow disbursement and bureaucratic hurdles. This has led to fears that the funds may primarily benefit a few established businesses rather than the most vulnerable local players.
For this Italian loan to have a significant impact, many believe it will need to be accompanied by far-reaching reforms to the business climate in Tunisia, where issues like regulatory instability, high tax pressure, and corruption continue to hinder the growth of SMEs.
MK/ac/fss/abj/APA