Taking the lead initiative by creating an integrated full solution to the problems of SMEs financing, Caisse Des Depots Et Consignations (CDC) and the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank Group, and with support from KIPCO group, Albaraka Bank and the Bank of Financing SMEs (BFPME)
, today, announced the launch of the largest CMF regulated and first ever Tunisian SME Shari’ah Complaint Fund with the principal purpose to address the small and medium enterprises’ (SMEs) funding gap by providing financial assistance in the form of growth capital to suitable SMEs that are poised for exponential growth. In turn these SMEs should contribute to Tunisia’s economic development and diversification by way of employment as this fund will generate roughly 1,000 employment opportunities. It is worth noting that the SME sector is considered the backbone of the Tunisian economy.
THEEMAR is an innovative integrated solution for SMEs as it addresses the entire financing issues that face most SMEs from equity to technical assistance needs. It tackles the equity needs by way of direct investment and mezzanine. It solves the issue of debt financing by way of partnership with Albaraka Bank, the Bank of Financing SMEs (BFPME) and Alzatouna Bank. THEEMAR also addresses the working capital problems through the line of finance from the International Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group. At the same time the technical assistance grant will be used to compliment THEEMAR by assisting those SMEs to better enhance their capabilities and growth strategies.
THEEMAR will aim to provide accessible finance for growth and expansion to Tunisian SMEs via Islamic modes of finance, as well as create a source of long-term high-yielding returns at the time of exit. By concentrating on growth capital for relatively new businesses, the Fund will reduce volatility normally characterized with SME or early stage investments. THEEMAR will invest in SMEs in various industry sectors in Tunisia with special attention given to promising sectors and to inner regions. THEEMAR will be managed by United Gulf Financial Services, North Africa.
“CDC and ICD share a mission of supporting the private sector especially the small and medium enterprise sector, and we look forward to enhancing our cooperation through this new and innovative product tailored specifically to Tunisia,” said Jamel Bel Haj, CDC General Director.
“ICD looks forward to cooperating with CDC especially in providing the Tunisian SME sector with the first dedicated equity product that is also Shari’ah Compliant, and we hope through this product we are able to help contribute to our member country, Tunisia” the Chief Executive Officer of the ICD, Khalid Al Aboodi.
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. The authorized capital stock of the Corporation is two billion USD while the capital available for subscription is one billion USD. Its shareholders are the IDB, 52 Islamic member countries, and 5 public financial institutions from member countries. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Shari’ah. ICD also provides advice to Governments and private organizations to encourage the establishment, expansion and modernization of private enterprises.
CDC is a Tunisian Public Institution established by Decree number 85 dated on the 13th of September 2011, with a capital of roughly US$2.33 billion. The CDC will act as a catalyst in support of the Small to Medium Enterprises in the Republic of Tunisia. Their main task is twofold: first to invest the monies given to it by its investors and second to contribute to the overall development of the Republic of Tunisia.
