couv copie - Enda Inter

ANNUAL
REPORT
2013
Contents
Editorial
2
Who Is Enda ?
4
Enda, Supporting Micro-entrepreneurs
6
Recent Events
12
Tunisia Is In Transition: We Too
20
Our Clients Are At The Heart Of Our Work 22
Enda, Financial Empowerment Through a Range of
Tailored Services.
24
Support Services For Micro-entrepreneurs.
31
New Technology To Support Micro-finance.
34
Social Performance Is Our Core Value.
36
Our Partners.
39
Our Staff Are The Foundation Of Our
40
Excellence
Solid Financial Position
47
EDITORIAL
2013 : an uneventful year or almost.
The biggest event of the year, without a doubt, was the
loaning in August of our billionth dinar to our client Aroussia
MB, a small stakeholder in Korba. This accomplishment is the
fruit of Enda’s ongoing commitment to broaden the financial
inclusion of people excluded from Tunisia’s traditional financial system.
In 2013, we focused mainly on preparations for Enda’s transformation to a micro-finance corporation in order to consolidate
its position as the micro-finance pioneer in Tunisia.
The transition process has been launched in an evolving, local legal environment, which, since the
Tunisian “revolution”, has become more favorable to the development of the micro-finance sector. As
banal as such a legal transformation might seem, several NGO’s have spent five years or more finalizing it. Indeed, the rules applied to micro-finance corporations are not the same and investors have
become increasingly demanding. During the past year, we have initiated an improvement and upgrading process that includes: a new legal and fiscal framework, the adoption of expanded procedural
regulations, the strengthening of our human resources and the opening of new branches. Everything
has been planned to ensure the success of this transition. To back-up our efforts we have received the
generous support of several of our partners namely the IFC, the AFD, Sanad,
and the Swiss Confederation.
Despite the important high stakes of this transition phase, Enda has not been prevented from
pursuing its mission of financial inclusion, expanding its activities to meet the growing
demand for micro-credit and ensuring the training of micro--entrepreneurs. We have
assessed the three year period since the revolution. Throughout the period, while local banks
had no more liquidity, Enda provided 700,000 small loans with a value of 764 million dinars.
Enda’s portfolio more than doubled during this time and attained a value of 170.5 million
dinars at end-2013. Although unemployment in Tunisia is still a dominating reality, Enda
increased its workforce to reach the level of 1,100 associates. More than 80% of these
employees are young graduates. While the Tunisian economy has sputtered, the “microbusiness” sector has been resilient with a 42% increase in the number of Enda’s active clients
and a repayment rate holding steady at 98%. These statistics emphasize the economic and
social contributions of the micro-business sector even though it is thought to be “insignificant
“ by many due to its “micro” nature.
Enda has pursued a new product expansion called the “Bidaya Loan,” that encourages
(especially) unemployed young people to create their own job by starting-up a micro-enterprise. 3,000 micro-enterprises have already been created using this new loan formula. Enda’s
expansion has greatly spread to rural regions where mobile payment via cellphones, for
example, will be used to bring it closer to distant clients.
Michael P. Cracknell
In short, an “uneventful” year.
2
Enda’s Board of Directors
Slah Kooli
Salma Cherif
Mr. Kooli has been Enda’s President since
2011. He is the Regional General Manager of
a large agribusiness company. He has helped
create SME’s in the IT field and is an engineer
with a degree from the Ecole Centrale de
Paris.
Ms Cherif has been Vice President
since 2012. She is a doctor and is
active and involved in the non-profit
and development fields.
Sophie Bessis
Moncef Zaafrane
Ms Bessis has been a Board member since 2012.
She is a journalist and former Editor in Chief of
the Jeune Afrique weekly magazine and the
UNESCO Courier. She is currently Director of
Research at the Institut de Relations Internationales et Stratégiques (IRIS) in Paris. She also fills
the position of Assistant General Secretary of the
International Federation for Human Rights
(IFHR).
Mr Zaafrane has been a member since
the Board’s establishment. He is a
former Secretary General of the
Tunisian Government, a former CEO of
the Tunisian Central Pharmacy and a
former banker and CEO of several
private sector companies.
Mohsen Boujbel
Ferid Abbas
Mr. Boujbel has been a member
since 2013. He is a businessman
and former Secretary of State for
Agriculture in the Tunisian
Government.
Mr. Abbas was a member until September
2013. He is CEO of the SETCAR Company
and an active businessman in several
sectors. He is Vice-President of the Board of
the Arab Tunisian Bank.
Elyes Jouini
Badreddine Ouali
Mr Jouini has been a member since
2013. He is a University Professor
and Vice President of the University
at Paris-Dauphine, in charge of
research.
Mr. Ouali was a Board member
until May 2013. He is the CEO of
the VERMEG group and founded
the BFI Company in Tunisia.
The General Directors
Essma ben
Hamida
Michael
philip Cracknell
Ms Ben Hamida is a Co-Founder of
Enda and its Executive Director. She
is a former international journalist
and professor and is a geographer
by training.
Mr. Cracknell is a Co-Founder and Enda’s
Executive Secretary. He is the Former
Secretary General of the International
Federation of Agricultural Producers and a
United Nations consultant. Mr. Cracknell
possesses a Doctorate of Laws.
3
Who is Enda?
Enda inter-arabe is an international, non-profit NGO, and operates under the auspices of Law
No. 93-80 of July 26, 1993 on the establishment of non-governmental organizations in
Tunisia. It was founded in Tunisia in 1990 by Essma Ben Hamida, the current Executive Director and Michael Cracknell, the current General Secretary .
A member of the ENDA Third World network based in Senegal, Enda inter-arabe has been
active in Tunisia for more than 25 years, including 20 years in the field of micro-credit.
Enda works to contribute to the financial self-sufficiency of marginalized people, particularly women and youth, by providing a range of quality financial services and promoting
entrepreneurship.
Financial inclusion of all households at the bottom of the pyramid through socially
responsible micro-finance.
Five key values guide all Enda’s decisions and actions:
Women and Men
Because the improvement of human welfare is the principal objective of Enda’s social enterprise work and
the primary reason for its success, Enda:
- Offers its employees and clients opportunities for development
- Encourages a spirit of initiative and a sense of community, as well as a culture of social engagement
- Ensures equal opportunity within the institution and women’s emancipation in society
Service
Because service is at the heart of what we do, Enda:
- Makes clients its priority, placing them at the center of its activities
- Offers the highest quality service and ensures constant professionalism and easy access to
all appropriate assistance
Integrity and Transparency
Because Enda believes it is responsible to its clients, its partners and itself, Enda:
- Carries out all of its operations while applying the highest ethical and transparency
standards
- Manages its financial services with honesty, efficiency and trust.
4
Innovation
Because Enda’s leadership viability and relevance is based on innovation, it:
- Conceives and develops financial products tailored for its clients’ specific needs
- Adopts technological solutions for improved service quality and efficient operations
Responsability
Because our overall attitude towards our environment is characterized by responsibility, Enda:
- Commits to loyally serve its clients, employees, partners and the natural environment.
- Leads by example and always endeavors to comply with the highest standards in micro-finance
best practices.
’
Good
Governance
Enda has a dynamic Executive Board that applies its knowledge, experience
and numerous professional contacts to Enda’s decision-making and work.
Given the importance of transparency in the management of the institution,
Enda’s application of this principle has given it a backbone of transparency in it
financial dealings and overall management.
Client
Satisfaction
Enda provides quality, financial products tailored to its clients’ needs, while it
develops close, working relationships with them.
It provides support services to micro-entrepreneurs to help them to
manage their businesses and improve their personal development.
Partner
Support
Transparency
Support
Services
Enda develops solid financial and non-financial partnerships with
local and international institutions.
Enda’s staff is passionate, energetic and high-performing and is thoroughly
committed to different levels of the organization.
Staff
Commitment
5
Enda, Supports Microentrepreneurs
What have we achieved since the
2011 Revolution?
235 000 +42%
166 000 Active Clients
Loans disbursed
+34%
75
58
170,5 MDT
79 MDT
Branches
Amount
674 MTND
Number
700 000
Loans disbursed
+47%
+116%
746
Staff
Portfolio
1100
239.825
Active Loans
231.520
Active Clients
1100
Total Number of Employees
75
Number of Branches
251 812
Number of Loans Disbursed
275 859 850
Amount of Loans Disbursed
Outreach and Growth
The Growth in Active Clients
june
july
sep
226 574
226 850
223 841
augu
oct
231 520
may
229 775
apri
225 297
mar
226 412
febr
219 037
218 131
janu
214 164
211 264
233 731
Compared to the particularly difficult year of 2012, the number of active clients in 2013 increased
moderately by 10% to reach 231 520 at year-end. This growth exceeded original predictions.
53% of Enda’s clients manage income-generating activities (IGA), 40% of them, run a micro-enterprise;
13% are small farmers. Even though the highest percentage of active clients are involved in incomegenerating activities , the urban and rural micro-enterprise segment saw remarkable growth in active
clients compared to 2012.
nov
dec
7
Increasing Numbers of Rural Clients
Urban
61%
Rural
39%
Women remain the primary target of our activities,
given their great vulnerability in different levels.
Statistics show that they are less educated, less
active in employment (25% of the workforce) and
less present in decision-making posts (15% in the
public sector, 10% in the private sector, and 16% in
the agricultural sector). Enda aims to strengthen
their economic and social roles and to provide for
them with the means to develop their potential
through access to micro-credit.
Economic and Social
Empowerment for Women
Woman
68%
Enda is pursuing a strategy to strengthen its
presence in rural areas. 39% of clients live in
rural areas. Enda is planning to open more
branches in these areas.
Man
32%
Many Different
Business Fields
Enda’s main activity remains supporting micro-entrepreneurs, who amount to 85% of our clients. To
satisfy their needs, Enda offers a wide range of financial products adapted to the various sectors:
business, agriculture, services and crafts.
Being conscious of the need to improve living conditions for disadvantaged populations, Enda has
expanded its segmentation to include support for the education costs of low wage-earners’ children
(52%) and home improvement (42%) At end-2013, this category was 15% of Enda’s client portfolio.
Low Wage-Earners
Micro--Entrepreneurs
Education Finance 52%
85%
15%
Services
9%
Production
15%
Improvement of Living Conditions 48%
Crafts
8%
Business
37%
8
Agriculture
36%
Expansion of Enda’s Network
During 2013, Enda enhanced its presence in predominantly rural areas with three new branch
openings in Foussana, El Krib and Mateur. Seven large branches were divided, namely: Aghalba for
Kairouan, Sidi Thabet for Oued Ellil, Mornag for Ben Arous, Sakkiet Eddayer for Sfax, Souk Ejdid for
Sidi Bouzid and El Ksar for Gafsa. This step was taken as a result to the heavy workload created by
the growing number of active clients.
Bizerte
Mateur
Ariana
Mannouba
Jandouba
Tunis
Nabeul
Béja
Zaghouan
El KribSeliana
El Kef
Sousse
Kairouan
Kairouan2
Foussana
Kasserine
Mounastir
Mahdia
Souk jedid
Sakiet
edaier
Sfax
Sidi Bouzid
Gafsa
El ksar
Tozeur
Gabes
Kebelli
Mednine
Greater Tunis
(18 branches)
Ariana
Omrane sup.
Medina
Zouhour
Tadhamen & Mnihla
Kabaria
Ben Arous
Mhamdia & Fouchana
Oued Ellil
Douar Hicher
Hrairia
Sidi Hessine
Mornaguia
Hammam Lif
Marsa
Kram
Tébourba
Tataouine
Enda branches opened before 2013
Enda branches opened in 2013
Governorates
9
Productivity
Number of Loans Disbursed
More than 250 000 loans were disbursed in 2013, an increase of 9% over 2012, with a
monthly average of 20 900 versus 19 000 in 2012.
Loans disbursed 2012
Around 2 000 loans
more were disbursed monthly in
comparison with
2012
5000
22 561
25 284
20 220
20 857
17 939
23 858
32 558
18 835
18 209
19 747
15 933
17 314
18 344
20 233
16 894
16 438
10000
19 887
15000
18 204
15 930
20000
16 163
25000
17 038
18 428
30000
20 802
31653
35000
Loans disbursed 2013
0
jan
feb
mar
apr
may
jun
july
aug
sep
oct
nov
dec
Amount of Loans Disbursed
The total amount lent in 2013 amounted to 275 860 000 TND, an increase of 25% over
2012. This corresponds to a monthly average of 23 000 000 TND.
This is an increase
of 4 700 000 TND
in monthly loans
granted compared
to 2012.
21253150
26997000
aug
24400050
july
25282850
19453150
jun
17324400
17807800
may
22330500
apr
22918100
mar
18304400
19063950
feb
23275900
17539550
18502750
15659850
19351400
10000
2201980
15000
20297700
20000
18478400
25000
149 28 450
30000
18108200
20827900
35000
31055000
22037250
2012
2013
5000
0
jan
10
sep
oct
nov
dec
Outstanding Loans
138 264 552
141 910 812
141 973 464
145 926 702
149 469 924
150 509 366
149 629 241
153 887 043
156 801 976
161 874 243
jan
feb
mar
apr
may
jun
july
augu
sep
oct
nov
169 269 147
135 618 958
The number of outstanding loans increased by 26% in 2013 compared to 24% in 2012. This
growth is a particular result of an increase in the average loan amount.
dec
It should be noted that the average amount outstanding per client increased from 641 TND in 2012
to 731 TND in 2013 (+14%). The achievement exceed forecasts of 8 million TND, an achievement rate
about 105%
1095
Average Loan
956
The average loan rose from 956 TD in
2012 to 1 095 TND in 2013 (+15%).
623
2012
684
Average Loan
Initial Average Loan
2013
Portfolio Quality
In order to fight against deterioration in portfolio quality, measures were taken to strengthen Enda’s
loan recovery department and trageted technical assistance where applied. These measures succeeded by end-2013 to improve Enda’s portfolio-at-risk quality, which declined from 4.5 million TND in
December 2012 to 3.3 million TND a year later.
5545
5432
5084
6000
5275
5500
5000
4998
4785
4547
4500
4000
3500
3000
déc12 janv
fév
mars
avril
mai
juin
juill
août
sep
oct
nov
3375
déc
Amount of the portfolio at risk
Amount of the portfolio at risk >30 days
Amount of the portfolio at risk + loss
Amount of the portfolio at risk >30 days + loss
11
Recent Events
In Tunisia...
Enda inter-arabe loans
its billionth dinar
Enda inter-arabe has been applying “good practices” in
micro-credit in Tunisia since 1995. The organization has
been expanding ever since. In August 2013, Enda interarabe lent its billionth dinar. This dinar was part of an 800
TND loan given to Aroussia MB, a small livestock owner at
Korba. This rather large amount of 1 billion dinars loaned
has enabled us to support approximately 428 000 people
throughout Tunisia.
A University Degree
in Micro-finance
The Higher Institute of Technological Studies (ISET) in Bizerte
and Enda inter-arabe signed a partnership agreement on May
22, 2013 that aims to create, for the first time in Tunisia, a university degree in micro-finance. This Tunisian University and civil
society partnership will promote the employment of university graduates and strengthen the micro-finance sector. With a
“start-up”period of three years, the partnership guarantees the
recruitment of students who get their diplomas.
Fighting Money Laundering and the
Financing of Terrorism (LAB/FT)
Enda received technical assistance from the AFD to set up procedures for Anti-Money Laundering and to fight the
Financing of Terrorism (French acronym “LAB/FT”). To carry this out, a training module was developed and training
of trainers was undertaken. This activity is required by Law No. 2011-117 of November 5, 2011 that organizes the
activities of micro-finance institutions.
13
Inauguration of Enda
inter-arabe’s New Headquarters
On May 30, 2013, Enda inter-arabe opened officially its new headquarters located in Cité El
Khadra in Tunis. The opening ceremony provided an occasion to honor and reward the performance and dedication of 5 micro-entrepreneurs and 3 staff members. The occasion was
enhanced by the presence of Mr. Philippe de Fontaine Vive, Vice President of the European
Investment Bank, who visited Enda to sign a 4€ million loan agreement with Enda. The
ceremony took place in a convivial atmosphere with many of Enda’s friends and partners.
The new building incorporates numerous ecological and innovative elements including
natural construction materials and modern methods of thermal insulation and energy
conservation.
Double partition in
insulating stone
Roofing in cellulosic concrete to
reduce thermal penetration
Plants for
well-being
Horizontal sunshades
on the southwest façade
14
Open spaces for better
communication
Enda at the World Social Forum
Enda inter-arabe participated on March 26-30, 2013
in the World Social Forum (WSF) held on the campus
of the University of Tunis in El Manar. The event
brought together more than 30 000 representatives
of 5 000 organizations from every part of the world.
Enda Third World, seat of the international Enda
network, played a major role in the launch of the WSF
in 2001 in Brazil and in setting up this particular
Forum, held for the first time in Tunisia. Enda interarabe led two workshops on important social topics
relative to Tunisia’s environment in full democratic
transition: “Gender and Citizenship” and “Youth Entrepreneurship.”
TEDx Women
TEDx Carthage Women 2013, the Tunisian
women’s edition of the international TED conferences, was held December 8, 2013 at the Palais
de Congrès in Tunis. Among the female presenters, Leila Gargoura, a faithful Enda inter-arabe
client, shared the story of her experience with an
admiring public. Leila, a sexagenarian, created
two retirement homes where she takes care of
more than thirty pensioners and employs thirty
people dedicated to their well-being. She has
received loans totaling 14 500 TD and counts on
Enda’s support to open a third retirement home.
Signature of EIB Loan Agreement
Mr. Philippe de Fontaine Vive, Vice President of the
European Investment Bank (EIB), signed a € 4 million loan
agreement with Enda inter-arabe to finance its activities
and to extend its micro-credit operations in Tunisia’s
under-served regions. This loan combines technical
assistance with financial support to help Enda inter-arabe
strengthen its organizational structures, improve its
growth management and succeed to integrate the local
financial sector and be sustainable. The project is in line
with the EIB's intention in granting this loan: to expand its
operations involving risk capital, notably in private sector
development and to strengthen Tunisia’s micro-finance
sector.
15
…Abroad Also
Enda is invited to many international conferences that relate mostly to the micro-finance sector and
associated topics. As it is a member of several international networks - notably Enda (Dakar), Sanabel
(Cairo), Micro-finance Centre (Mexico City), Grameen Jameel (Dubai), Women’s World Banking (New
York), and The Smart Campaign (Washington, D.C.) - Enda inter-arabe plays an active membership role
in these organizations’ activities.
Enda also frequently receives invitations to international training sessions, such as the training on
marketing financial products organized by CAWTAR in Lebanon in February 2013.
A Collaboration Opportunity
(Ixtapa, Mexico, 350 participants,
October)
SPTF/Smart Campaign (Panama, 500
participants, June)
16
In addition to the training received and the exposure to the content of formal presentations, an important part of a international conferences is also to make contacts and have discussions outside the
conference rooms where additional learning takes place, experience is shared and contacts are initiated and/or strengthened
Among the noteworthy conference of 2013, can be cited:
Youth Business International (London,
450 participants, September)
Union for the Mediterranean
(Barcelona, 50 participants,
September)
Child and Youth International
(Istanbul, 300 participants, May)
WWB annual conference
(Amman, Jordan, 400 participants, November)
Mifos Summit (Jaipur, 80
participants, October)
World Economic Forum (summer
Davos, Forum), (Dalian, China, 2
500 participants, September)
17
Enda in the News
A University Degree in Micro-finance
Une convention de partenariat stipulant la création, pour la première fois en
Tunisie, d’une licence en micro-finance a été signée hier entre Enda
inter-arabe et l’Iset de Bizerte.
« Il s’agit d’introduire cette nouvelle filière de microfinance à l’Institut
supérieur des études technologiques de Bizerte, tout en assurant une
formation adéquate aux étudiants et en garantissant le recrutement de
l’ensemble de ses diplômés au sein d’Enda», a souligné Mme Samia Mnif,
responsable de la formation à Enda, ajoutant que le nombre total des
diplômés est estimé à 90, sur une période de 3 ans.
« L’objectif est d’orienter les jeunes étudiants vers cette nouvelle filière à forte
valeur ajoutée et qui est susceptible de créer de la richesse dans le pays », a-telle précisé.
La présidente exécutive d’Enda, organisation internationale d’appui aux
micro-entrepreneurs, Mme Asma Ben Hamida, a formulé le souhait de voir les
universités s’ouvrir davantage sur de nouvelles filières d’enseignement
supérieur, en mesure de dynamiser le marché de l’emploi, telles que la
spécialité «Développement ».
Elle a annoncé qu’Enda développera de nouvelles applications, en
l’occurrence le «Mobile banking », afin de pouvoir offrir ses prestations aux
Billionth Dinar
Enda inter-arabe, ONG spécialisée dans le financement des micro-projets en
Tunisie, vient de débourser son milliardième dinar. Le bénéficiaire est
Aroussia MB, petit éleveur à Korba qui a eu un prêt de 800 DT , pour
développer son projet . Ce financement est le 6ème prêt qu'elle a obtenu d'
Enda inter-arabe depuis 2009, pour un montant total de 2 400 DT.
Enda inter-arabe a lancé le micro-crédit « bonnes pratiques » en Tunisie en
1995. Au mois d’août 2013, elle a franchi l'étape du milliardième dinar . Cette
somme a permis de financer près de 428 000 personnes à travers tout le pays
, soit quelque 2 300 DT par micro-entrepreneur en moyenne.
La population cible d’Enda inter-arabe est composée de personnes
vulnérables exclues des services financiers, notamment les micro-entrepreneurs et des personnes ayant un faible salaire. 70% des personnes servies par
Enda inter-arabe sont des femmes. Avec un portefeuille de 150 millions DT,
Enda développe 40% de ses activités dans les zones rurales, surtout isolées et
démunies, et 25% de son portefeuille profite aux moins de 35 ans.
Le taux de remboursement global sur toute cette période s'étalant sur 18 ans
est de 97% .
18
SANAD Loan
ven..12.07.13
Le fonds SANAD (aide) pour les micros,
petites et moyennes entreprises a
octroyé un prêt de 6 millions de dollars
(environ 10 millions de dinars) à Enda inter-arabe,
organisation non gouvernementale pionnière dans le
microcrédit en Tunisie. « Il s'agit du premier investissement en
dette de SANAD en Tunisie », note un communiqué publié
conjointement par SANAD et ENDA.
Le prêt de SANAD aidera Enda à accroître ses activités dans les
zones rurales défavorisées, à diversifier sa gamme de produits
destinée aux jeunes promoteurs et à renforcer les activités de
micro-finance actuelles de l'institution. « Ce partenariat avec
SANAD contribuera à l'amélioration du développement
économique et social des Tunisiens à faibles revenus et des
micro-entrepreneurs », précise le communiqué.
« Nous sommes très heureux de commencer un partenariat à
long terme avec le leader de la micro-finance en Tunisie », a
estimé Wolfgang Reuss, Président du Conseil d'Administration
de SANAD. « Le réseau étendu d'Enda nous permettra
d'optimiser l'impact de notre investissement sur le marché
tunisien et de contribuer au développement économique et
social du pays », a-t-il dit.
« Le prêt permettra à Enda de soutenir davantage les micro-
EIB Loan
La Banque européenne
d'investissement (BEI) vient
d'accorder à Enda inter-arabe un
prêt moyen terme (7 ans) d'un
montant équivalant à 4 millions
d’euros (8 millions de dinars) afin
de financer sa croissance et
d'étendre ses opérations de
micro-crédit dans des zones
défavorisées de Tunisie.
L’accord a été signé jeudi 30 mai par Philippe de Fontaine Vive, vice-président de la
BEI, et Asma Ben Hamida, directrice d'Enda inter-arabe, en marge de l’inauguration
du nouveau siège de cette dernière situé à Cité El Khadhra à Tunis.
M. de Fontaine nous a précisé à cette occasion que ce financement de la BEI serait
assorti d'une assistance technique qui permettra à Enda inter-arabe de renforcer
ses structures organisationnelles pour gérer au mieux sa croissance et réussir son
intégration durable dans le secteur financier local.
Pour lui, ce projet constitue un excellent exemple de complémentarité entre les
deux institutions dans le secteur de la microfinance, ce qui a permis le
développement de Enda en une institution de microfinance rentable, et ce
financement de la BEI lui permettra de poursuivre sa croissance en donnant aux
banques locales -qui ne participent encore que de façon très marginale à son
financement- un signe de confiance dans les perspectives et la solidité de Enda.
Pour sa part, Mme Ben Hamida nous a déclaré que ce projet correspond aux
objectifs que la BEI a assignés à Enda pour la mise en œuvre des opérations de
capitaux à risques, à savoir le développement du secteur privé et en particulier le
19
separateur3
Tunisia Is In Transition : We Too
A New Law For The Developement
Of Micro-finance
Enda inter-arabe is a civil society organization, anchored in Tunisia’s socio-economic environment
for the past twenty-five years. Its position has strengthened over time thanks to the continued application of international good practices and an intensive involvement in Tunisia’s communities. Enda
quickly adapted to the new, very unstable, politico-socio-economic context of post-revolutionary
Tunisia. The local legal environment has become more favorable to the development of Tunisia’s
micro-finance sector. In keeping with these reforms, Enda will be launching a process to create a
micro-finance company. Enda’s current NGO structure will continue its technical assistance and
borrower support activities and other development services to achieve the economic and social
emancipation of our targeted people.
Technical Assistance
International
Finance
Corporation
- Management strategy for the portfolio at risk
- Risk Management
- Strategic Marketings produits.
- Evaluation of the information management system
- Drafting of the new corporation’s business plan
- Building the corporation’s capital structure
- Assistance for Anti-Money Laundering and the Financing of
Terrorism (LAB/FT)
French
Development
Agency
21
Our Clients Are At The
Heart Of Our Work
Enda, Financial Empowerment Through a
Range of Tailored Services
Enda aims to serve its clients and provide them with quality products adapted to their needs. For that
reason, Enda hired Micro-Save India to analyse and review its products.
The lessons learned and recommendations coming from the assignment, allowed Enda to review its
range of products and its marketing strategy.
Bidaya
Support for youth
start-up
Mawsem
Agricultural microenterprises
Forsa
Machia
Seize market
opportunity
Income-generating
agricultural
activities
Credit Lines
Mawelni
Darna
Micro-enterprises
Home
improvement
Solfa
Ta’âlim
Income generating
activities
Education-related
expenses
25
The Agriculture To Ensure Your Future
Hasna is 35years old . She comes from a farming
family and has always admired her father who
learned animal husbandry by himself. After her
marriage, Hasna’s husband moved to Italy. She lived
alone with her children in the region of El Graba near
Sidi Bouzid and fed her small family using money
sent by her husband. After few years, Hasna decided
to launch her own project and asked Enda for a
micro-loan. She borrowed 800 TND and used it to
buy a cow. The cow was pregnant and few months
later gave birth to a calf.
Ever since, Hasna has been working non-stop with
passion and enthusiasm. She currently has over 25
cows. She has already created another project by
creating a henhouse and sells chickens and farmfresh eggs. With loans totalling 10 000 TD and with
technical assistance from Enda, Hasna is now a self-reliant, dynamic woman.
Enda Raises its Focus on Rural
Areas
Enda began providing livestock-raising finance in 2007, primarily in central and north-western Tunisia. To
appropriately respond to small farmers’ demands for financing their agrarian activities, Enda started a
pilot product, called “Mawsem”, in 2010. After three years, more than 50 000 loans have been made to
finance agricultural projects and livestock rearing, totaling 58 million TND. There are now more than 44
000 active mawsem clients, with outstanding loans of 35 million TND. The main activities financed are
sheep raising (65%), cattle raising (21%), and agriculture (10%)
With Enda’s loans, farmers can buy animal feed and enlarge their herds in times when livestock forage is
scarce. Moreover small farmers can buy the inputs necessary for their fields. These loan beneficiaries have
the advantage of a flexible repayment schedule, based on income flow, seasonal expenses and their
repayment ability.
Despite the difficult climatic conditions in 2013, Enda continued to provide agricultural loans throughout
Tunisia, with a 29% increase over 2012. This continued agricultural loans policy was reaffirmed when, in
November, 2013, Enda signed a partnership agreement with the dairy company, Vitalait, at Madhia. This
project’s objective is to consolidate soilless dairy projects. Enda’s loans are intended to enable very small
(2 - 3 milch cows) units grow to a more profitable size (5 - 6 cows) and boost milk production.
27
Participation at SIAMAP
Enda inter-arabe participated for
the first time in the International
Exhibition of Agriculture, Agricultural Machinery and Fisheries
(SIAMAP), that took place from
November 27 to December 1,
2013 at the Kram Exhibition
Centre. This international event
brought together over 35 000
professionals and 25 000 general
public visitors. Enda was one of
300 exhibitors, with 100 coming
from 17 different countries.
Enda’s Partnership with the Vitalait Dairy Plant
Enda signed an agreement with the Vitalait Dairy Plant in Mahdia to encourage small
stakeholders dairy sector development. This agreement impacts “soilless” farmers who
generally do not have loan access through the traditional banking sector. Enda finances
dairy farmers with only two or three cows placing them below the profitability threshold.
Many of the small producers who are mostly women can now buy heifers and receive
needed technical assistance. In addition milk quality and quantity and family incomes are
improved.
28
Honouring Youth
Since her childhood, Asma Lahrech has been a
dedicated, accomplished artist with an unbridled
passion for the arts and culture. In July 2013, she
founded a culture training center in Beja, that
teaches different art classes, mostly to women and
children.
From a shopkeeper’s family, she get earned a
Master’s degree in Business English, which gave her
business management knowledge and skills.
Moreover, with her undeniable artistic talent, she
trained in painting and improved her technique.
Her two years spent working in the Beja culture and
youth centers exposed Asma to the opportunities
and challenges of her hometown’s cultural sector.
She developed the idea to open a cultural center to
give Béja’s women and children a much-needed
space to have fun and become familiar with
different art forms like painting, music and theatre.
With no access to traditional credit she quickly
obtained a 3 000 TD “Bidaya” loan from Enda.
“My father was skeptical about the profitability of
my project. As a challenge, I wanted to show him
that culture and the arts can be money-making
areas.” Due to Asma’s enthusiasm and drive to
succeed, the 7 staff center is constantly full only
several months after its inauguration.
Asma’s project’s success caused her to be selected
with 15 other women entrepreneurs for an
Arab-German mentorship program initiated by the
Euro-Mediterranean Association. This programme
provided her with guidance and training in how to
prepare a business plan and in entrepreneurial
management.
Her future plans?
Asma dreams of opening an art gallery where she
can sell her works and those of other Tunisian artists.
Enda Actively Promotes Entrepreneurship
and Job Creation for Youth
With support from the Swiss Confederation, “Bidaya” loan was launched after the revolution to
encourage young people to create their own job by creating a micro-enterprise. More than 3 100
young business-people have created their own micro-enterprises with Bidaya Loans. 63% of the
bidaya loan clients are 35 or younger, 48% are women and 19% have university degrees. More than
42% of these young people were unemployed when they received their first loan. These projects
have generated an additional 2 300 jobs in Tunisia.
During the special, pre-loan phase, the young micro-entrepreneurs receive assistance to develop a
business plan, get follow-up and personalized advice from Enda’s specialists and appropriate
training.
The Swiss Confederation
Confédération suisse
The project“Promotion of Self-Employment by Tunisian Youth”was carried out
by Enda inter-arabe and co-financed by the Swiss Confederation. By applying
tailored micro-finance services the project’s goal is to contribute to economic
growth and social cohesion by promoting self-employment opportunities for
Tunisia’s unemployed youth. The Swiss Confederation allocated 4 540 000 TND
to support the project for a period of three years.
30
Support Services for Micro-Entrepreneurs
Enda, des services d’appui pour
les micro-entrepreneurs
Prior to the start-up of its micro-credit activities, Enda inter-arabe already offered support
services. Currently these services provide business management and personal development
support to micro-entrepreneurs. Enda strongly believes that non-financial support is a necessary complement to financial services. This is why it provides them to its clients and constantly
tries to develop and diversify them. These services include:
- Training and mentoring activities to develop projects
- Financial education sessions to increase productivity
- Diagnosis and advice to better understand their activities and apply good management
techniques
- Strong marketing support
- Discussion groups for exchange ideas and experience.
Enda’s assistance helps clients strengthen their self-reliance and skills, overcome weaknesses and
increase chances of success. In 2013, more than 15 000 clients benefited from assistance
services, including technical training, financial education and marketing support.
Accomplishments and Highlights from 2013
- Financial education with CAWTAR
- Awareness campaign about women’s rights in Islam
- Participation in several Cedaw workshops aimed at making accessible the articles of the convention on anti-discrimination against women (in collaboration with -ATFD and the Egalité et Parité
association).
- Participation in civil society events in Tunisia, such as the Festival of Associations organized in
June
- Collaboration with the” Beiti” Association, which shelters homeless women
- Partnering with Swiss Contact for women’s skill development through technical training in the
Kasserine Governorate
- On-line marketing of handicrafts from Enda’s artisan clients
32
Aflatoun
Aflatoun is an international organization working
in the area of social and financial education for
children. Its objective is to teach children basic
financial and management concepts, while
instilling in them certain social responsibilities
and rights.
In November 2013, Aflatoun launched its first
programme in Tunisia in collaboration with Enda.
The children-related programme was conceived
to help develop potential, adopt a pro-active
attitude and acquire values and practical skills
allowing them to build self-esteem and respect
for others.
Self-exploration
and knowledge
Rights and
responsibilities
Children taking
initiative
Saving and
expenses
Planning and
budgeting
Enda built a partnership with Aflatoun thanks to a
strong similarity of mission. As a portion of this
partnership, Enda’s staff received training of
trainers that enabled them to teach children
concepts centered around
the Aflatoun
method’s five main themes.
Initial activities were launched in Kef and Ariana
for childrens’ groups with members between
10-11 years old.
The Aflatoun programme has reached more than
a million children aged between 6 and 18 in
some 100 countries. Aflatoun’s ambitious
objective is to reach 10 million children in 120
countries in 2015. In Tunisia, the common
objective of the Enda-Aflatoun partnership is to
see the integration of its social and financial
education programme into the national
education system.
33
New Technology To Support Micro-finance
Thanks to Mobile Payments We Are More
Closer To Our Clients
Information and Communication Technologies (ICT) are a key concern in micro-finance sector development. Enda
believes that mobile payments will be dominant in the future, and be sustainable as a new way to provide services
that will boost Enda’s efforts to gain proximity to distant clients and facilitate their access to micro-credit.
To continue to expand and modernize its services, Enda started a mobile payments solution for its clients on June
17, 2013. This is an innovative solution in the Tunisian micro-finance sector and aims to ensure on-going and sustainable financial inclusion for all citizens, however small, in Tunisia. It enables the disbursement and repayment of
loans via mobile and guarantees security and adequate control measures.
The project is supported by a grant of €1.2 million from the European Union delegation to Tunisia. This is part of
the EU’s “Financial Inclusion for Isolated Rural Populations through Branchless Banking” programme. A pilot
project was carried out in collaboration with Viamobile as technological partner, BIAT bank as financial institution
and Tunisie Telecom. The entire project conforms to current legislation. Distance banking will rely on local sales
agents and on technology to provide financial services to relatively poor people living in outlying areas.
The project has already been tested in two branches located in Sidi Hessine (Borj Chakir) in Tunis region and in Sidi
Bouzid. It will later be expanded to branches situated in priority governorates (for economic development and
employment generation).
35
Social Performance Is Our Core Value
La performance
sociale, au centre de
nos préoccupations
Protecting clients' interests has always been a major concern for Enda. Thus, it is committed to applying
international, effective good practices and to fully conform with the principles promoted by the "Smart
Campaign". Enda has been a member of this organization’s board since 2006. Enda created a mutual confidence charter that includes advice on how the institution must act in its relations with clients. It has also
adopted a communications strategy linked to the application of the Smart Campaign’s principles. In fact
in all of Enda’s branches posters explain the seven essential principles for client protection, complete with
an appropriate message; these are in full view for clients to see. These important principles are known by
all of Enda’s staff.
In 2013, Enda joined the Smart Campaign’s certification process in order to publically encourage the
practices required by the client protection principles. A technical committee was formed to map out the
way to obtain certification.
Appropriate product design and
delivery
1
Prevention of over-indebtedness
2
Transparency
3
Responsible pricing
4
Fair and respectful treatment
of clients
5
Privacy of client data
6
Mechanisms for complaint
resolution
7
37
Our Partners
Local Financial Partners
International Financial Partners
Funders
��������� ������������
Confédération suisse
Networks
Women’s World Banking
Other Partners
The Prince’s
Youth Business
International
39
Our Staff Are The Foundation Of
Our Excellence
Key Figures for 2013
1100
Employees
9%
growth in staff
181
New recruits
12%
rise in payroll
164
Staff
Our staff increased by 9% in 2013. The
proportion of Enda’s staff working in
branch offices is 87.5% of the total workforce, in keeping with a desire to remain
close to the client base.
Training sessions
134 000 TND
expenditures
social work
118
Distribution of New Recruits
By Job Occupied
In 2013, Enda recruited close to 200 new staff members,
mostly as in its new branches and also to strengthen
branches that increased their number of active clients.
Through this recruitment policy, Enda’s staff network was
strengthened by 118 loan officers who make up 65% of
new hires.
31
18
14
Managers at headquarters
Administrators at headquarters
Network support staff
Portfolio managers
To recruit candidates, in addition to other
methods, Enda posted its job announcements
on social networks. This approach aims to
reach more young people.
61% of new hires were under 30.
41
Remuneration
In 2013, Enda pursued its remuneration policy that
aims to recognize individual performance and
reward work that is performed well. The payroll rose
by 12% compared to 2012. This growth is explained
by a rise in base salaries and the hiring of experienced staff.
Change in Payroll*
2012 12 681
2013 14 085
*gross salaries in millions of TD
Maternity Leave
Group Insurance
54 000 TND in maternity leave
was paid in 2013 to 58 women.
Enda offers to its staff supplementary group
insurance that is partially paid for by the organization.
Staff members can claim benefits for repayment of
medical expenses, disability and death.
Workplace Medical Care
889 doctor’s consultations were performed during the year including 240 independent doctor’s
visits and 649 visits performed by doctors from an occupational medicine group.
Social Funds
Since the inception of the social fund, the number of participants has continued to increase. In
2013, this number reached 880 people, or 80% of the staff. 130 000 TND was spent on school fees
for employees with children and in subsidies to help meet a wide variety of expenses like births,
marriages, deaths, etc.
42
�
Well-Being
Enda has been committed for many years to improving the well-being of its staff. This goal
is reflected in a workplace environment policy that enables the staff to work under
optimal conditions. Among the different measures taken to address this concern, discussion groups were organised throughout the year along with individual discussions to help
staff face personal and work-related problems.
Number of complaints received
1833
Number of complaints resolved
1299
Average time to resolve complaints
5 days
Number of group discussions
12
Number of people participating in these groups
36
Skills Development
Training
Enda invests heavily in training to give staff the opportunity to develop, to gain new skills
related to the needs of the institution and to offer everyone the opportunity to reach their
potential. For that, Enda provides job-related training courses adapted to each type of job
and the experience of the person concerned, as well as personal development training
courses on stress management, interpersonal communication, etc.
In 2013, the number of training sessions increased by 67% over the previous year. 164
training sessions were carried out, of which 105 took place internally at Enda’s training
center at Hay Ettahrir. The various training sessions dealt with 47 specific topics and totaled
4 463 person-days of training.
200
164
150
105
98
100
48
50
External
Internal
Number of sessions
59
50
0
43
2012
2013
Enda believes in its staff and the passion that they
put into the pursuit of the
organization’s goals.
Career Management
Our primary concern is to spark motivation and commitment by emphasizing professional and
personal accomplishment. Our associates benefit from attractive career opportunities via
performance evaluations, training opportunities and preferential access to internal promotions.
Staff Evaluations and Promotion
Because Enda thinks that everyone has the right to plan their career path and have a clear
understanding of their future at enda, it has a system of staff evaluations. Evaluation discussions
are designed to stimulate individual motivation of our staff and aim to identify each person’s
abilities, as well as encouraging talent development and internal promotion in the organization.
As a result of these evaluations, 997 people were promoted within their grade during 2013. The
year was also marked by the granting of permanent contracts to 225 employees earlier than the
legally stipulated four years of service.
44
Loan Officers of the Year
Each year, Enda recognizes its top loan officers through an evaluation based on 3 main criterias:
productivity, quality of loan portfolio and quality of service.
In 2013, four loan officers distinguished themselves through their hard work and dedication to their
job.
Rachida Sadok Dardouri
Loan Officer since 2010
El Hamma Branch, Governorate of Gabes
“I attach great importance to relationships with our clients. Respect,
courtesy and empathy remain the key to ensure top quality service. I
promote the image of Enda in my neighbourhood and the organization should measure up to this image.”
Taoufik Rabeh Sahbi
Loan Officer since 2012
Jelma branch, Governorate of Sidi Bouzid
“We are all equally good. It is thanks to teamwork and our shared
passion that my job is made easier. I want to put forth my best efforts
to carry out Enda’s mission in the Jelma community.”
Saida Slimen Hammami
Loan Officer since 2012
Mjez El Beb Branch, Governorate of Beja
“I love my job. I feel upbeat and learn something new every day. Fieldwork isn’t easy, but it allows me to become an active and respected
woman in my community. Organization and hard work in everything
I undertake is essential to succeed in my job.”
Haythem Hassouna Alouani
Loan Officer since 2012
Soliman Branch, Governorate of Nabeul
“Since my first day at Enda, I knew I was becoming part of a new
family. Over time, contact with our clients and the responsibility that
I took, have helped me to advance as much in my professional life as
in my personal life. Today I am motivated more than ever to move
forward.”
45
Enda,
a Solid Financial Position
47
Asset Structure
Asset Growth
Since the revolution, the organization’s assets have doubled, representing an average annual growth
of 30%. As of December 31, 2013, recorded assets were 180 million TND, a growth of 22% over the
previous year. This growth was supported by an identical rise in net loans outstanding. Indeed, the
portfolio grew by 26%, moving from 134 million TND at the end of 2012 to 170 million TND at the end
of 2013.
Asset Growth
Growth of Gross Loans Outstanding
26%
22%
180 811
26%
147 636
41%
38%
108 606
117 092
78 915
83 192
2010
169 269
24%
134 583
2011
2012
2010
2013
*in thousands of dinars
2011
2012
2013
*in thousands of dinars
Asset Composition
Assets have maintained the same structure as in previous years. The principal component of assets
remains net outstanding loans at 90% of the total in 2013. A slight rise in net fixed assets was
witnessed in 2011 and 2012 due to the purchase of a building in Ettahrir and the construction of the
new headquarters in Cité El Khadra.
100%
95%
2%
7%
3%
8%
4%
8%
3%
6%
90%
85%
91%
89%
88%
90%
2010
2011
2012
2013
80%
0%
48
Other Assets
Net Fixed Assets
Net Outstanding Loans
Liability Structure
Liability Growth
The organization’s liabilities grew by 26%, from 112 million TND at the end of 2012 to 141 million
TND on December 31, 2013. This growth is explained by a larger recourse to financing through
bank loans to support business growth.
Liability Growth
Growth in Outstanding Bank Loans
27%133 174
26%
28%
112 327
50%
141177
49%
87 741
2011
83 602
54 420
58 667
2010
54%106 430
2012
*in thousands of dinars
2013
2010
2011
2012
2013
*in thousands of dinars
Refinancing
International Institutions 37%
The AFD, SANAD and Responsibility are new
financial partners. The Tunisian banks (BIAT,
Amen Bank, UBCI, BNA), as well as Oikocredit
and the EIB have already financed Enda and the
loans taken out in 2013 are renewals for larger
amounts. New loans taken out in 2013 amount
to 71 million TND, of which 47 million TND has
been disbursed. The remaining 24 million TND
will go to partially finance needs in 2014.
The total of bank loans borrowed at the end of Local Banks 63%
2013 amounts to 224 million TND, of which 63%
from local banks and 37% from international lenders.
With the Tunisian financial market experiencing a lack of liquidity since the outbreak of
the revolution, Enda had to turn to the international financial market to meet its refinancing needs. The portion of loans from local banks went from 77% in 2012 to 63% in
2013, while those contracted with international funders rose from 23% in 2012 to 37%
in 2013. These foreign loans are include coverage for foreign exchange risk, which has
considerably increased their cost.
As of December 31, 2013, total reimbursement of bank loans reached 67 million TND.
49
Sustainability and Profitability
Return on assets
2010
2011
2%
2%
3%
8%
9%
6%
The slight decline in return on assets in 2013 (2%)
compared to 2012 (2.6%) is explained by lower
operating profits and a growth in assets. Return on
equity is also on the decline, going from 11% in
2012 to 8% in 2013.
11%
Return on equity
18%
Return on Assets and Equity
2012
2013
Self-Sufficiency
Operational self-sufficiency ratios
127%
2011
2012
103%
103%
106%
112%
113%
2010
108%
Financial self-sufficiency ratios
116%
Operational and financial self-sufficiency ratios
declined compared with 2012, moving respectively
from 112% and 106% to 108% and 103%.
The decline in profitability ratios is explained by
lower operating profit, affected by a continued
prudent allowance for doubtful loans, as well as a
sharp increase in the cost of funds due to the
economic situation of the country.
2013
Efficiency and Productivity
Staff Productivity
Active clients per staff member
2010
50
400
401
2011
2012
210
207
217
250
401
442
The number of active clients per loan officer and per employee
remained the same as in 2012, with an average of 400 clients
per loan officer. This can be considered a rise in productivity,
given our increased presence in outlying rural regions, our
focus on improving service quality, the spread of the individual
client focus through the “Mawelni” product and the launch of
the Bidaya product for young creators of micro-enterprises.
Notwithstanding, the number of active clients per employee
rose slightly over the year, going from 207 at the end of 2012 to
210 at the end of 2013.
Active clients per loan officer
2013
Appendices
51
Balance Sheet
As of Decembre 31, 2013
(Expressed in TND)
Assets
2013
2012
268 620
2 478 765
3 000 003
1 554 068
163 842 884
-6 770 762
157 072 122
130 954 692
-5 383 335
125 571 357
889 020
808 021
1 646 504
1 500 329
162 876 269
131 912 540
779 400
23 228
5 426 213
3 628 764
Fixed assets (Gross)
Accumulated depreciation
Net fixed assets
15 857 425
-4 128 077
11 729 348
15 297 539
-3 226 148
12 071 391
Total long-term assets
17 934 961
15 723 383
180 811 230
147 635 923
Current assets
Cash & bank current accounts
Interest-bearing deposits
Gross Loan Portfolio (Current)
Loan Loss Reserve
Net Outstanding portfolio
Staff and Other current assets
Accured Income (Intrest & fees)
Total current assets
long-term assets
Financial Investment
Gross Loan Portfolio (Long-term)
Total Assets
54
Balance Sheet
As of Decembre 31, 2013
(Expressed in TND)
!
Liabilities & Equity
2013
2012
31 536 274
18 942 911
1 282 488
755 640
483 428
6 258
4 380 995
4 298 710
37 683 185
24 003 519
101 637 671
87 486 750
1 856 563
836 418
103 494 234
88 323 168
141 177 419
112 326 687
6 295 982
5 435 398
860 584
5 435 398
4 187 238
1 248 160
1 117 212
1 117 212
1 106 665
1 106 665
Prior years retained earnings/losses
28 767 173
24 028 573
Current year retained earnings/loss
3 453 444
4 738 600
39 633 811
35 309 236
180 811 230
147 635 923
Current Liabilities
Short-term accounts payable (loan)
Interest payable on funding
Overdraft
Short-term accounts payable
Total current liabilities
Long-term Liabilities
Long- term loans
Reserve for possible loss
Total Long-term Liabilities
Total Liabilities
Equity
Grants for loan fund capital
Donated equity--prior years, cumulative
Donated equity--current year
Grants for equipement
Donated equipement--prior years, cumulative
Total Equity
Total Liabilities & Equity
55
Income Stetement as of December,31 (Expressed in TND)
Operating Income
Income from other finance-related Services
Total Income
Financial Charges
2013
2012
38 430 029
31 311 716
350 264
228 786
38 780 293
31 540 502
8 046 011
5 401 197
30 734 282
26 139 305
3 096 286
2 051 517
27 637 996
24 087 788
Salaries & benefits
17 471 951
15 448 315
Occupancy expenses
1 065 422
794 226
Telecommunications
441 468
523 445
Transportation, travel & auto operation
148 429
129 096
Program development & training
640 296
711 027
4 317
10 653
690 997
0
80 073
72 735
Other Administrative expenses
3 106 767
2 062 949
Depreciation
1 120 692
865 056
24 770 412
20 617 502
2 867 584
3 470 286
20 934
13 758
206 943
177 330
(186 009)
(163 571)
771 869
1 431 885
3 453 444
4 738 600
Gross financial margin
Loan loss provision
Net financial margin
Operating Expenses
Gouvernance fees
Transformation
Audit & legal fees
Total Operating Expenses
Net Operating Profit ( Loss)
Non-financial services income
Non-financial services expenses
Net Profit ( Loss) from non financial services
Cash donations
Total Consolidated Profit/Loss
56
assistance street , el khadra city
1003 tunis, tunisia
tel : + 216 71 80 40 02
fax : + 216 71 80 41 25
www.endarabe.org.tn