Mobilizing 28 MTND in investment to support business growth and youth employment
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1. Company at a Glance
In this case study, we explore how UGFS North Africa used business financing and investment support to connect company growth with employment opportunities, skills development and women’s economic inclusion. Through its participation in the Challenge Fund for Youth Employment (CFYE), the company financed 46 SMEs through 76 investment rounds and contributed to 4,652 jobs being created, improved or matched, while 811 people received training and 1,904 young women benefited from employment outcomes.
Finance
Industry
Tunisia
Country
Asset management
Business
2. The Challenge
Connecting business growth with youth employment
UGFS North Africa identified an opportunity to use business investment to address two connected needs in Tunisia: enabling companies to grow and expanding professional opportunities for young people.
Rather than treating financing and employment as separate objectives, UGFS sought to support businesses whose investment projects could contribute to job creation or improvement, skills development and greater economic participation by young women. The initiative also aligned with the company’s broader strategy of supporting entrepreneurship, sustainable growth and employment generation through investment.
The challenge was therefore to translate business financing into measurable employment and inclusion outcomes while working with companies operating across different sectors and coordinating the stakeholders involved in financing, business development and employment support.
3. The Action
Linking investment support to employment outcomes
DEFINING EMPLOYMENT AND INCLUSION OBJECTIVES
UGFS North Africa structured its intervention around both business development and employment outcomes. Supported activities were expected to contribute to one or more of the following areas: creating new jobs, improving the quality or sustainability of existing jobs, matching young people with employment opportunities, developing young people’s skills and improving women’s access to professional and economic opportunities.
This created a common framework for considering business growth alongside employment and inclusion throughout the initiative.
UGFS North Africa implemented the programme as part of the Consortium for Youth Employment, together with Wiki Startup, the first private Incubator and accelerator in Tunisia.
FINANCING BUSINESSES WITH GROWTH POTENTIAL
UGFS worked with businesses from several sectors of the Tunisian economy. Through the programme, 46 SMEs received financing across 76 investment rounds. The focus was on businesses capable of developing their activities and implementing investment projects that could support growth and employment.
Across the programme, total investment reached 28 MTND. CFYE contributed 10 MTND, while the Consortium for Youth Employment contributed 18 MTND. Financing was provided through a mix of instruments, primarily equity (55.3%) and convertible bonds (38.8%), alongside debt (5.8%) and a small proportion of grants.
The portfolio approach allowed UGFS to work across several sectors rather than concentrating financing in a single industry.
SUPPORTING THE IMPLEMENTATION OF BUSINESS INVESTMENT PROJECTS
The programme combined financing with tailored business development and technical support to help participating companies implement their investment plans and strengthen their operations. UGFS North Africa contributed investment, management and corporate governance expertise, while Wiki Startup supported companies in areas including business development, product and process management, and sales and marketing.
This combination of capital and hands-on business support helped participating companies strengthen the capabilities needed to translate investment into business growth and employment opportunities.
COMBINING BUSINESS SUPPORT WITH SKILLS AND INCLUSION ACTIVITIES
Alongside investment in businesses, the programme delivered mentoring, training and coaching to participating companies. More than 150 sessions were provided to entrepreneurs and investee teams, covering areas such as business development and sales, marketing, financial monitoring, project management, digital strategy, communication and soft skills.
A total of 811 people received training, helping connect workforce skills with the needs of participating businesses, while activities supported through the program reached 1,904 young women.
COORDINATING PARTNERS ACROSS THE PROGRAMME
The programme brought together beneficiary companies, investors, business-support organizations and funding partners, requiring coordination across organizations with different roles and areas of expertise. UGFS North Africa led the financing mechanism and coordinated with programme partners, while its teams maintained direct engagement with participating companies.
CFYE, funded by the Netherlands Ministry of Foreign Affairs, complemented this work through funding and technical assistance in areas including operational management, impact investment, gender equality and social inclusion, youth empowerment and decent work. This partnership structure helped maintain alignment between business development, financing and the programme’s employment and inclusion objectives.
NEXT STEPS
UGFS plans to build on the CFYE experience through its Green 4 Employment (G4E) platform, focused on green investment. The planned platform aims to support sustainable businesses, contribute to green- job creation and expand inclusive investment beyond Tunisia into North Africa.
4. Overcoming Barriers
UGFS identified three main implementation challenges: coordinating multiple stakeholders, ensuring that business financing translated into employment outcomes, and effectively reaching young people and women.
The company addressed these challenges by maintaining close coordination with businesses, investors, support organizations and funding partners, while working with beneficiary companies on the implementation of their investment projects and maintaining a focus on employment, training and inclusion outcomes.
5. Impacts & Results
Business and employment impact
46 SMEs financed through 76 investment rounds across several sectors.
26 supported SMEs have experienced an increase in revenue by an average above 60%.
28 MTND in total investment mobilized, including 10 MTND from CFYE and 18 MTND from the Consortium for Youth Employment.
4,652 jobs created, improved or matched, including 1,818 jobs created, 1,296 improved and 1,538 young people matched into employment.
811 people trained.
1,904 young women supported in accessing better professional and economic opportunities.
This intervention represented nearly 60% of the CFYE program’s overall impact in Tunisia.
6. Key Lessons Learned
Link financing and impact objectives from the start
Employment and inclusion outcomes are easier to integrate when they are considered alongside business growth objectives from the design of the financing initiative.
Build impact monitoring into the program from the beginning
Earlier milestones and more frequent feedback from businesses and beneficiaries could have helped identify implementation challenges sooner and provide stronger qualitative evidence alongside quantitative results.
Share learnings during implementation
UGFS also identified an opportunity to share lessons among partners throughout the program rather than concentrating knowledge-sharing at the closing stage. This could allow successful approaches and implementation challenges to inform other participants while the initiative is still underway.
"Building on the CFYE experience, we are developing Green 4 Employment (G4E) to use green investment to support sustainable businesses, create green jobs and advance inclusive growth beyond Tunisia across North Africa.”
Mr. Mohamed Salah Frad, Managing Director
7. Company Commitment
UGFS has been a committed participant in several UN Global Compact initiatives since 2019
8. Recommended Resources
Recommended UN Global Compact Resources
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Disclaimer: This case example is intended strictly for learning purposes and does not constitute an endorsement of the individual companies by the UN Global Compact.