BEI World announces 450 million euros of support for Tunisia

The European Investment Bank has revealed that the new Vice-President of the EIB in charge of financing for the Maghreb, Ioannis TSAKIRIS, will travel to Tunisia for his first official visit on June 12 and 13, 2024.

On this occasion, he will meet several members of the Government and partake in the Tunisian Investment Forum. “He will reveal new financial support from the Bank for Tunisia for a full amount of 450 million euros. This EIB commitment is intended to fund fundamental investments for the development of essential infrastructure and job creation,” reads an EIB press release released today.

This strong mobilization echoes the continued commitment of the European Investment Bank (EIB) to promoting economic and social development in Tunisia. Targeted projects seek to increase resilience and private sector growth, promote sustainable energy solutions, and improve accessibility in remote regions, thereby fostering more inclusive growth.

Among the new announcements is the “Tunisia Economic Recovery” credit line, amounting to 170 million euros. This credit line will provide strengthened support for micro, small, and medium-sized enterprises (MSMEs), which constitute approximately 90% of the country’s businesses and operate 60% of its workforce. By improving their access to financing and providing innovative risk-sharing instruments, the EIB aims to back companies that continue to invest and create jobs. This project is also supported by a grant of 8 million euros from the European Union.

Likewise, the EIB will ink a financing contract of 210 million euros to modernize the strategic corridor between Sfax and Kasserine and therefore improve connectivity and reduce mobility costs. This support will thus promote more inclusive growth and the development of the private sector in the regions, by connecting them to major economic centres.

In addition, a loan of 45 million euros will be given to the ELMED electricity interconnection project between Tunisia and Italy, alongside Team Europe partners. This project will assist improve Tunisia’s energy security and permit the country to exploit its renewable energy production potential. It aligns with the EU’s broader objectives on energy security and sustainability.

In addition to these new allocations, the EIB will sign a grant of 25 million euros from the EU for the modernization of educational institutions in Tunisia in continuation of the loan of 40 million euros signed in 2023. This project seeks to improve learning and teaching conditions in schools, benefiting about 14,500 students with the construction of 80 new primary schools and increased digitalization of education.

“Tunisia is a significant partner for the EIB in the region and our support for its development initiatives remains strong. This new funding indicates our commitment to supporting small and medium-sized businesses, developing sustainable energy infrastructure and improving intra-regional connectivity. These investments will play a vital role in creating jobs, stimulating innovation and promoting balanced development, for the benefit of all Tunisians,” said Ioannis TSAKIRIS, Vice-President of the EIB.