Summary:

On 18 December 2022, the European Investment Bank (EIB) committed to two loans to Tunisia totaling €220 million to help bolster the country’s food security and electrical infrastructure. The first €150 million will target food insecurity, with special consideration for the rising cost of raw materials and the impacts on Tunisia of the Russian war in Ukraine. The second  €70 million will be directed toward projects in support of the Société Tunisienne de l’Electricité et du Gaz (STEG) and the upgrade of Tunisia’s electrical distribution infrastructure.

Outlook:  

Despite new uncertainty following the delay of the finalization of Tunisia’s $1.9 billion International Monetary Fund (IMF) loan deal, regional lenders continue to commit new loan funds targeting development. Food insecurity in the face of inflation and rising prices has a continuously destabilizing effect on Tunisian society, both through the direct impacts of poverty and by driving irregular migration to Europe. 

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