Summary:

On 22 September 2026, Tunisia and the African Development Bank signed two financing agreements worth around $240 million to upgrade drinking water infrastructure in Greater Tunis and rehabilitate production facilities operated by the Tunisian Chemical Group (GCT). 

According to the announcement, SONEDE will receive a €111.5 million loan to rehabilitate parts of its water network and improve its energy performance. GCT will receive $110 million to support the rehabilitation of production units at its Gabès, Skhira, and M’Dhilla facilities. The water project is expected to improve supply reliability for around 2.9 million people, while the GCT program is intended to help restore production capacity. 

Outlook: 

The financing comes at a time when infrastructure failures in both water supply and the chemical industry have become increasingly visible. Recent potable water disruptions in Greater Tunis have intensified scrutiny of SONEDE’s network, while pollution concerns around the GCT complex in Gabes have triggered protests demanding an end to operations. 

Against this backdrop, the two loans could provide an initial mechanism for addressing some of the infrastructure deficiencies behind these disputes. Their significance will ultimately depend on whether the investments are implemented quickly enough to address the problems that have already generated public pressure, rather than only improving the institutions’ longer-term technical capacity. 

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