Summary:

On 16 January 2025, Tunisian Minister of Foreign Affairs, Mohamed Ali Nafti, and his Italian counterpart Antonio Tajani, signed an agreement to finance Tunisia’s food security program.  

The agreement falls under the TANIT project and includes 400 million euros, of which 320 million is a loan and 80 million is a grant to support sustainable eco-tourism in rural Tunisia.  

The two diplomats also signed an agreement for mutual recognition of driving licenses and a third agreement to enhance cooperation on the green energy transition. 

A day prior, Italian energy company ENI and the Italian-Tunisian company for oil exploitation (SITEP) signed a deal with the Tunisian state to finance the development of a new oil drilling operation at El-Borma field. 

Meanwhile, parliamentary commissions approved a loan project from the French Development Agency (AFD) of 50 million euros to finance the sixth phase of the national program for connecting several residential areas to sewage networks. The deal was scheduled to be reviewed by Parliament on Monday, 20 January.  

Outlook: 

Italy and France are continuing to show an active interest in supporting Tunisia’s infrastructure and broader economic development. This interest reflects the two countries’ resolve to prevent further economic, social and political instability in Tunisia that would very likely reverse gains toward slowing irregular migration flows to Europe. 

Tunisia also presents a potential market for European enterprises in the energy sector with new wells planned and renewable energy projects taking shape with various foreign investors.  

Cooperation with Italy and France is likely to help create job opportunities while promoting improved infrastructure for Tunisians, particularly in the communities where projects are developed. However, time will tell if the projects create the economic growth and profits necessary to repay the loans being taken on to support their initiation. 

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