Summary:

On 25 September 2025, the Confederation of Citizen Enterprises of Tunisia (CONECT) announced the launch of a €55 million credit line from Italy to support small and medium-sized enterprises (SMEs) across the country. 

Implemented in partnership with the Italian Agency for Development Cooperation (AICS), the initiative includes information sessions in governorates such as Jendouba, Sidi Bouzid, Mahdia, Sfax, and Kairouan to guide project leaders through the application process. 

SMEs account for more than 90% of Tunisia’s economy but often face limited access to bank financing due to high costs and restrictive lending practices. The new credit line seeks to address this gap, though some observers remain skeptical about whether the funds will effectively reach the businesses most in need. 

Outlook: 

The Italian-backed credit line reflects Tunisia’s growing reliance on external partners to support its struggling private sector, particularly SMEs that form the backbone of the economy but remain constrained by limited financing access. The new effort also further indicates Italy’s commitment to taking a leading role in the development of countries across North Africa, with a particular focus on Libya and Tunisia. 

If implemented effectively, the program will help stimulate regional development, ease unemployment pressures, and foster entrepreneurship in marginalized governorates where Tunisians are most desperate for economic opportunity. 

However, skepticism over transparency and the government’s ability to channel funds to genuine SMEs may limit its impact. In the longer term, Tunisia’s dependence on foreign-backed financing initiatives underscores structural weaknesses in its banking system and highlights the urgent need for broader reforms to improve domestic credit access and strengthen investor confidence. 

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