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- EBRD providing a loan of up to €190 million to improve Tunisia’s digital infrastructure and to connect the country to the MEDUSA submarine cable
- Innovative financing with an inaugural development-linked loan
- Comprehensive EU support in the form of a guarantee, investment grant and technical cooperation package
The European Bank for Reconstruction and Development (EBRD) and Tunisie Telecom, Tunisia’s national telecom operator, are partnering to improve the country’s digital infrastructure and drive the company’s transformation.
The up to €190 million EBRD development-linked loan will be disbursed in four tranches, including a first committed tranche of €50 million. The loan will finance multi-year investments in upgrading Tunisie Telecom’s mobile access network from 4G to 5G, expanding its fibre network, connecting up to 200,000 Tunisian households to fibre-to-the-home, and modernising the company’s backbone and core network, as well as targeted investments in energy efficiency and energy production.
To enhance the country’s international connectivity, the loan will also finance Tunisie Telecom’s connection to the MEDUSA submarine cable, a subsea cable network in the Mediterranean Sea, supported by the European Union (EU) and led by Spanish company AFR-IX, which spans more than 8,000 kilometres and connects close to 13 countries in Europe, North Africa and the Middle East.
The EBRD loan is complemented by an €11 million grant from the EU under the Neighbourhood Investment Platform, comprising an investment grant to support Tunisie Telecom’s investments in its core networks and in cybersecurity and a technical assistance grant for a comprehensive transformation programme to modernise and underpin the growth of the national operator.
The transformation programme will focus on critical areas of corporate development, such as skills development, sustainability, energy efficiency, digitalisation, cybersecurity and strategic reform, and is expected to improve the company’s efficiency, resilience and competitiveness.
The EBRD is providing for the first time since 2012 a financing without a sovereign guarantee in Tunisia’s public-sector.
Moreover, the loan is structured as a development-linked loan, whereby the interest rate is tied to the achievement of key transformation programme milestones: sustainability objectives and broader state-owned enterprise (SOE) reform objectives.
The project highlights the Bank’s holistic approach to the digital sector in Tunisia and its strong partnership with the Tunisian government when it comes to accelerating the country’s digital transformation. It adds to the Bank’s existing engagement with the Ministry of Communication Technologies and the telecom regulator to promote e-services for businesses and citizens, improved competitiveness in the sector and enhanced innovation.
EBRD President Odile Renaud-Basso said: “We are very proud to support a key sector for Tunisia at a time when digitalisation and connectivity are of very high and ever-increasing importance. Partnering with the Tunisian government and the EU, we are contributing to the modernisation of Tunisie Telecom and the digital transformation of the country. This upgrade will also enhance connectivity to Europe and ultimately help position the country as a key digital hub across the Mediterranean region and in Africa.”
Lassaad Ben Dhiab, Chief Executive Officer of Tunisie Telecom, said: “We are pleased to partner with the EBRD in a move that underscores international confidence in Tunisia’s economy and supports our vision for advancing the telecommunications sector. Through modernised digital infrastructure, improved international connectivity and new technologies, such as 5G and fibre, we aim to enhance services in education, healthcare and smart cities, bridging the digital divide and driving Tunisia’s digital economy forward."
Giuseppe Perrone, Ambassador of the European Union to Tunisia said: “Today we mark a landmark investment in Tunisia’s digital future. Through our joint EU-EBRD support for Tunisie Telecom, we are accompanying the company’s modernisation plans by reinforcing its critical infrastructure in line with the National Digital Strategy, accelerating 5G rollout and connecting Tunisia to the MEDUSA submarine cable – a Global Gateway flagship. This is more than a project: it is a concrete step toward fast, secure and future-proof connectivity across the Mediterranean, strengthening the EU–Tunisia partnership launched in 2023 for the benefit of our citizens.”
The EBRD’s financing for Tunisie Telecom is supported by a first-loss guarantee provided by the European Fund for Sustainable Development Plus (EFSD+) through its Digital Transformation Platform, an EU flagship initiative focusing on bridging the digital divide and fostering sustainable development in EU partner countries. By leveraging the EFSD+ guarantee, the project aligns with the EU Global Gateway strategy and supports the development of high-speed broadband infrastructure, digital solutions and inclusive economic growth in Tunisia and the wider region.
Tunisie Telecom is Tunisia’s majority state-owned national telecommunications company. Established in 1995, it is active in the fixed and mobile segments, operating the country’s backbone infrastructure, its largest fibre network and a network of mobile towers, as well as providing a comprehensive suite of telecommunications services to retail customers, businesses and public entities. It has subsidiary operations in Mauritania, Malta and Cyprus.
Since 2012, the EBRD has invested more than €3 billion in 89 projects across Tunisia and provided support to around 2,000 local small and medium-sized enterprises (SMEs) through EU-funded technical assistance.
The EU is Tunisia’s largest investor and trading partner, with European companies supporting more than 400,000 jobs across the country. Since the 2023 Strategic Partnership memorandum of understanding, the EU has mobilised more than €600 million in grants, leveraging around €5 billion in investments in key sectors such as energy, transport and SMEs.