Summary:

On 12 and 13 June 2024, the European Union (EU) hosted the Tunisia Investment Forum in Tunis where multiple loan and grant agreements were signed as the EU looks to bolster the struggling Tunisian economy. 

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During the investment forum, the European Investment Bank (EIB) announced three main financial packages: 

• A €170 million line of credit to support for micro, small and medium-sized business 

• A €210 million financing contract to “modernize the strategic corridor between Sfax and Kasserine, thus improving connectivity and reducing mobility costs.” 

• A €45 million loan will that help finance the ELMED electricity connector between Italy and Tunisia. 

Outlook: 

As the EU looks to invest in Tunisia’s future, the private sector and small businesses remain a clear policy focus. 

With many challenges currently faced by small and medium enterprises across sectors and geographies in Tunisia, the EU view this as an important piece of the economy that must develop in order for the economy to achieve stability. 

With Tunisia’s state-owned enterprises struggling with corruption and inefficiency, the EU directed these latest financing measures toward the development of private enterprises which employ 60% of Tunisia’s workforce. 

Such investments will likely take many years to show impact and that impact will likely be limited without conscious shifts in the policy environment which, at present, limits competition and generally favors large, state-run monopolies over small and medium enterprises. 

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