ENDA is an international and foreign NGO member of the ENDA Tiers-Monde network which is present in more than 20 countries and based in Dakar, Senegal. Established in 1989, ENDA started to provide microcredit to the poor in Tunisia in 1995. It now has an established network of 65 branches/outlets throughout the northern, southern and central parts of Tunisia. ENDA is a founder member of Sanabel, the Network of microfinance in the Arab countries.

The total project consists of a local currency loan of up to 10 million Tunisian dinar ($7 million) of up to 5 years to support its microfinance activities. An Advisory Services package with ENDA is also underway, focusing on Risk Management and institution building.

6.18 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	6.18
Equity

* These investment figures are indicative

Enda’s head office is located in Tunis, Tunisia. It operates through a network of 65 branches/outlets, which are located throughout Tunisia.

- Access to Finance for Micro-Entrepreneurs: This project will also allow ENDA to increase the outreach of its lending operations. With an existing average loan size of US$600 and an average maturity of eleven months, this project would enable ENDA to provide over 45,000 such loans during the tenor of the credit line expected to be up to five years. - Improved Economic and Social Livelihoods: The planned expanded outreach of ENDA's credit activities is expected to have a significant and positive impact on its clients' livelihoods. The provision of credit services empowers micro-entrepreneurs to take a proactive approach to improving their economic well-being.

IFC's additionality would come from its support to the only commercial private sector MFI in Tunisia to further improve access to finance to the targeted microfiance segments such as youth and women, including in rural areas. The medium term funding which IFC will be providing is not sufficiently available in the Tunisian market and especially to a micro finance entity. With its funding, IFC hopes to restore confidence in the financial sector as well as to the microfinance market. In addition to the loan, IFC will be providing AS to for institutional building as well as much needed expertise for ENDA's future transformation.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed ENDA''s portfolio, for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the portfolio and considering IFC’s investment. The Applicable Performance Requirements are: - The IFC Microfinance Exclusion List. This is a repeat project with ENDA, IFC also reviewed the existing Social & Environmental Management System (SEMS), and the capacity to implement the same. As a result of the latest supervision visit, it was found that the Environmental and Social Risk Rating is "F2-Average" and the client demonstrated satisfactory capacity to manage E&S risks according to the applicable requirements in previous investment.Based on the Applicable Performance Requirements and capacity review, the project will be required to: (i) Prior to commitment, finalize the internal approval of the Social & Environmental Management System (SEMS) to the satisfaction of IFC;(ii) Prior to commitment, notify IFC of the identified responsible, qualified person to manage and implement the SEMS;(iii) Prior to disbursement, provide evidence of implementing the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;(iv) Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and(v) Submit a periodic report to IFC as per a format to be provided by IFC.