The average amount of loans granted by microfinance institutions in Tunisia increased by 12.8%. And this, during the period 2015/2020, to reach 1263 dollars. While the assets of 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, 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, the FMA said. Adding that the development of financial techniques has made it possible to offer nanofinance products in certain countries.
And to continue that the Covid-19 pandemic has caused a drop in available financing and pressure on liquidity. In addition to the regression of the portfolios and the losses recorded for the first time by the sector in certain countries.
Microfinance institutions face several other challenges. With in particular the increase in the cost of sources of financing, 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, we noted.
The Fund emphasized the need to accelerate digital transformation, the development of women’s empowerment loans, sustainable microfinance in order to ensure the development of the sector in the Arab region.
In 2021, the number of microfinance institutions operating in seven countries with data in this area reached 84.
In sum, 77% of these institutions are active in Egypt and Sudan. While the distributions are between Palestine, Tunisia, Qatar and Saudi Arabia.