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The European Bank for Reconstruction and Development (EBRD) has partnered with Tunisie Telecom, Tunisia’s national telecommunications operator, to strengthen the countest’s digital infrastructure and support the company’s long-term transformation.
Under the partnership, the EBRD will provide a development-linked loan of up to EUR 190 million, to be disbursed in four tranches, including an initial committed tranche of EUR 50 million. The financing will support a multi-year investment program to upgrade Tunisie Telecom’s mobile access network from 4G to 5G, expand its fiber infrastructure, connect up to 200,000 houtilizeholds through fiber-to-the-home, and modernize the company’s backbone and core networks. The project also includes tarreceiveed investments in energy efficiency and energy production.
The loan will further enhance Tunisia’s international connectivity by financing Tunisie Telecom’s connection to the MEDUSA submarine cable, a Mediterranean subsea network supported by the European Union and led by Spanish firm AFR-IX. Spanning more than 8,000 kilometers, MEDUSA links nearly 13 countries across Europe, North Africa, and the Middle East.
The EBRD financing is complemented by an EUR 11 million EU grant provided through the Neighbourhood Investment Platform. This includes an investment grant to support core network upgrades and cybersecurity enhancements, as well as technical assistance to implement a comprehensive transformation program aimed at modernizing the national operator and supporting its future growth.
The transformation program will focus on key areas such as skills development, sustainability, energy efficiency, digitalization, cybersecurity, and strategic reform, with the objective of improving Tunisie Telecom’s operational efficiency, resilience, and competitiveness.
Notably, this marks the first EBRD financing in Tunisia’s public sector without a sovereign guarantee since 2012. The loan is structured as a development-linked facility, with interest rates tied to the achievement of specific transformation milestones, including sustainability tarreceives and broader state-owned enterprise reform objectives.
The project reflects the EBRD’s holistic approach to supporting Tunisia’s digital sector and its close cooperation with the Tunisian government to advance national digital transformation. It builds on the Bank’s ongoing collaboration with the Ministest of Communication Technologies and the telecom regulator to promote e-services, boost sector competitiveness, and foster innovation.
The financing is further supported by a first-loss guarantee from the European Fund for Sustainable Development Plus (EFSD+), provided through its Digital Transformation Platform. This EU flagship initiative aims to bridge the digital divide and promote sustainable development in partner countries. By leveraging the EFSD+ guarantee, the project aligns with the EU Global Gateway strategy and supports the rollout of high-speed broadband, digital solutions, and inclusive economic growth in Tunisia and the wider region.
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The European Union remains Tunisia’s largest trading partner and investor, with European companies supporting more than 400,000 jobs nationwide. Since the signing of the 2023 Strategic Partnership Memorandum of Understanding, the EU has mobilized over EUR 600 million in grants, leveraging approximately EUR 5 billion in investments across priority sectors including energy, transport, and compact and medium-sized enterprises.
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