(MENAFN- The Peninsula) Microcred Tunisia has launched 'Irada', a new loan product for young startup entrepreneurs, in partnership with regional social initiative Silatech.
Irada is expected to finance around 450 businesses over three years.
In addition to expertise in designing, Irada Silatech is providing loan capital and training to help Microcred loan officers support and coach young entrepreneurs during the pre- and post-financing phases.
Irada is supported by European Union, AFD, UN's International Fund for Agricultural Development, Making Cents International and Planet Finance.
It is a new group of loan products for entrepreneurs Silatech is helping microfinance institutions in the region to bring to the market this year.
Youth unemployment in the Arab world stands at 30 percent, the highest in any region in the world. In Tunisia, it is 31 percent.
According to World Bank, youth in the Middle East and North Africa region have the world's lowest levels of financial access, meaning would-be entrepreneurs are frequently prevented from starting businesses.
It is estimated that there is a financing gap for micro-, small- and medium enterprises of about $320bn-380bn.
Mohammed Al Naimi, CEO, Silatech, said: "Tunisia is in focus of Silatech and the partnership with Microcred represents an innovative response to the youth unemployment crisis in the region. "Irada will play a key role in turning jobseekers into business owners, creating jobs for other youth as they grow their businesses and contribute to the country's economic development."
According to Bodo Lieberam, CEO, Microcred Tunisia, the first disbursement of the Irada loan has taken place this week.
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