Financing Mechanisms in Tunisia

Available Financing Mechanisms

Several financing mechanisms for investment projects are available to Tunisian entrepreneurs and foreign companies, depending on their status and the nature of their project.

1 – Financing for residents

(Tunisian Investment Fund, BFPME, BTS, SICAR, seed funds, bank loans)

The traditional investment financing structure for new entrepreneurs of Tunisian nationality is as follows:

1. Bank loans: 60% of the investment (including working capital).
2. Equity: 40% of the investment (including working capital): 10% personal contribution from the entrepreneur, 60% from the Tunisian Investment Fund and 30% from other shareholders.

The BFPME finances start-up projects with an investment cost of more than TND 100,000 and less than TND 15 million.

The BFPME grants investment loans for a period of 7 years, with an interest rate ranging from 10% to 11%.

The Tunisian Investment Fund intervenes through equity investments managed by a SICAR. The shares are transferred back to the entrepreneur at their nominal value increased by 1% per year for projects whose investment does not exceed TND 2 million, and at nominal value increased by 3% for projects whose investment exceeds TND 2 million. The maximum repayment period is 12 years.

For investments of up to TND 2 million, the Tunisian Investment Fund’s contribution may reach 60% of equity. For investments above TND 2 million, its contribution amounts to 30% of equity.

The entrepreneur’s mandatory self-financing must represent at least 10% of equity for investments of up to TND 2 million and at least 20% of equity for investments of up to TND 10 million.

Several investment funds are established in Tunis, including:

• Phenicia Seed Fund, specialising in seed financing and venture capital. The fund is managed by Alternative Capital Partners.
• Phenicia Fund, specialising in strengthening the equity of companies in the start-up or development phase. The fund is managed by Alternative Capital Partners.
• IntilaQ, an investment fund with USD 28 million, founded by Qatar Friendship Fund, Ooredoo Tunisia and Microsoft Tunisia in December 2013. Its mission is to develop and strengthen the capabilities of young Tunisians by encouraging innovation and entrepreneurship in the ICT sector.
• Tunisian American Enterprise Fund (TAEF), resulting from an initiative of the U.S. Government aimed at expanding economic and employment opportunities in Tunisia, catalysing investment, promoting private-sector development and supporting inclusive economic growth. TAEF, currently endowed with a USD 60 million contribution from the U.S. Government, aims to strengthen growth prospects while focusing on inclusive social development factors: women, young people and Tunisia’s regions. The fund offers specific financing for start-ups.

In addition, short-term operating financing is available, including overdraft facilities, inventory financing, discounting of commercial paper and guaranteed obligations.

2 – Financing for non-resident companies (Offshore regime)

Non-resident companies may obtain financing from resident banks to cover their operating expenses in Tunisian dinars.

Financing of non-residents by offshore banks is also possible.