National Development Bank and Financing of SMEs in Tunisia: The Case of Banque de Financement des Petites et Moyennes Entreprises (BFPME)

This chapter explores the system of national development banks and the financing of small and medium enterprises (SMEs) in Tunisia, with a specific focus on the Banque de Financement des Petites et Moyennes Entreprises (BFPME). The Bank was established with the explicit mandate to provide financing to micro-enterprises and industrial SMEs, and to achieve sustainable economic development in Tunisia. In general, the chapter confirms that SMEs play a crucial role in boosting economic growth in the country. However, SMEs are limited by the lack of access to finance. While the government of Tunisia has provided significant support to developing national policy, BFPME drives sustainable economic growth through favourable financial support that empowers SMEs based on three phases, including creation, growth and restructuring. The Bank operates a wholesale lending business model under strict regulatory and institutional arrangements, corporate governance mechanisms and strong risk management frameworks.