The average amount of loans granted by microfinance institutions in Tunisia has increased by 12.8%, between 2015 and 2020, to stand at 1,263 dollars, while assets in the sector have increased by 20% per year. , according to the Arab Monetary Fund (AMF).
The Fund predicts, in its 29th report entitled “Reality and prospects of microfinance in Arab countries” published on May 31, 2022, the growth of the microfinance sector to 497 billion dollars, by 2030.
In Arab countries, microfinance has expanded to include insurance, transfer and savings services, says the FMA, adding that the development of financial techniques has made it possible to offer nano-finance products in some countries. .
The Covid-19 pandemic has caused a decline in available funding and liquidity pressure, in addition to shrinking portfolios and first-time industry losses in some countries, the report said.
Microfinance institutions face several other challenges including the increasing cost of funding sources, unfair competition with banks, excessive indebtedness, in addition to the need to focus efforts on risk management and disparities in terms of compliance with the rules of good governance.
The Fund considers it necessary to accelerate digital transformation, the development of women’s empowerment credits, sustainable microfinance in order to ensure the development of the sector in the Arab region.
In 2021, the number of microfinance institutions operating in 7 countries with data on the subject reached 84.
77% of these institutions are active in Egypt and Sudan, while the others are distributed between Palestine, Tunisia, Qatar and Saudi Arabia.