USAID Visit Tunisia Activity is joining forces with Baobab Tunisie , a local microfinance institution, to support 800 entrepreneurs in the tourism industry that have been hit hard by the COVID-19 pandemic.

The program, set to launch in September, will provide the beneficiaries with a total of 1.07 million TND in grants from USAID Visit Tunisia and 7 million TND in loans from Baobab, helping them recover from the impact of COVID-19 and grow their businesses.

Tunisia’s tourism industry, which contributes to 14% of Tunisia’s gross domestic product, suffered as much as any sector during the health crisis. In early 2020, international travel ground to a halt, and lockdowns and travel restrictions devastated many local tourism operators. The crisis continued into 2021, which still brought in far fewer international tourists than before the pandemic.

As the industry picks back up in 2022 and beyond, USAID Visit Tunisia/ Baobab’s assistance program will help some of these hard-hit entrepreneurs make a strong comeback and reach their full potential. Baobab will use its microfinance expertise to select 800 promising businesses to support in the tourism sector, prioritizing those led by women/youth and in underserved regions.

All beneficiaries will receive their full loan/grant package by June 2023 – helping them sustain and grow their businesses and leading to at least 160 jobs in the tourism sector.

“Tourism is a key sector in Tunisia, and we are happy to partner with Baobab Tunisie to bring funding for sustainable tourism to disadvantaged regions,” said USAID/Tunisia Mission Director Scott Dobberstein at the program’s official signing ceremony on July 27. “Supporting women and young entrepreneurs in the private sector brings economic growth and diversity to the Tunisian economy.”

Baobab CEO Emmanuel Decamps added: “We are honored to continue this collaboration with USAID by focusing on a vital sector for Tunisia tourism. Through this program, we will spare no effort in our contribution to help microentrepreneurs bounce back and ensure the viability of their activities and their jobs."