Summary:

On 19 December 2022, the French government called for resumption of talks between the International Monetary Fund (IMF) and the Tunisian government. The call comes following a delay in IMF plans to finalize the $1.9 billion loan deal with Tunisia and after historically low voter turnout for the country’s first parliamentary elections following the body’s suspension last year. French official Anne-Claire Legendre emphasized the importance of pursuing and finalizing the IMF deal and undertaking its prescribed reforms in order to avert Tunisia’s unfolding economic crisis.

Outlook:  

France has continued to take a cautiously encouraging tone toward Tunisia’s current trajectory, focusing on the need for economic rather than political reform. While other Western partners have linked aid and partnership to democratic benchmarks, France has maintained a consistent emphasis on Tunisia securing financing that can drive economic reform and, eventually, stability. With irregular migration as a major challenge for France and Europe generally, the hope remains that economic vitality will stem the flow of migrants into Europe. France continues to independently invest in this scenario while also pressing for the IMF deal as a complementary effort.

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