Summary:

During the week of 26 February 2024, World Bank Vice President Ferid Belhaj, who is responsible for the Middle East and North Africa, spent multiple days in Tunisia and eventually affirmed plans to make $520 million available to Tunisia. 

In addition to confirming plans for the World Bank to serve as a committed, long-term partner in Tunisia’s development, Belhaj announced that $300 million in financing would be available to address food security and $220 million for infrastructure development. 

The terms of the financing were broadly described as having a 20-year repayment period with a five-year grace period. The interest rate will be around 5%. 

The World Bank visit comes following visits by the European Bank for Reconstruction and Development (EBRD) and the Saudi Fund for Development (SFD) during which additional promises were made to continue investing in Tunisia’s economy. 

Outlook:  

The World Bank visit is one of several recent positive signs that external parties may be willing to hold back the Tunisian economy from a catastrophic failure in 2024, even as factors such as agricultural production and dwindling national budget continue to pose significant risks. 

After a period in late 2023 when Tunisia appeared increasingly isolated from its international partners, these visits point to a renewed openness to engaging with creditors, particularly those that do not require reforms, such as those outlined by the International Monetary Fund (IMF). 

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