Summary:

In late December 2022, Algeria provided $200 million in financing and $100 million in aid as Tunisia continues to battle an economic crisis. Delays in the finalization of a $1.9 billion loan deal with the International Monetary Fund (IMF) have made stopgap funding necessary. The funding was reportedly negotiated earlier in December during a series of working meetings held by the two governments.

Outlook:  

Algeria and Tunisia continue to cultivate a close partnership, a particularly vital relationship to Tunisia where the government has struggled to cultivate external investment. Some commentators have expressed concern about the concessions Tunisia may be making to Algeria in order to secure the relationship. From a regional perspective, the two countries continue to create economic and social distance from Morocco who has increasingly leaned toward the West.

Explore our services or speak with our team of North Africa-based risk experts.