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) EUR 190 million EBRD-development-linked loan will be disbursed in four tranches, including a first committed tranche of EUR 50 million. The loan will finance multi-year investments in upgrading Tunisie Telecom’s mobile access network from 4G to 5G, expanding its fiber network, connecting up to 200,000 Tunisian households to fiber-to-the-home, and modernizing 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 kilometers and connects close to 13 countries in Europe, North Africa, and the Middle East.
The EBRD loan is complemented by an EUR 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 program to modernize and underpin the growth of the national operator.
The transformation program will focus on critical areas of corporate development, such as skills development, sustainability, energy efficiency, digitalization, cybersecurity, and strategic reform, and is expected to improve the company’s efficiency, resilience, and competitiveness.
For the first time since 2012, the EBRD is 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 program milestones, including 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.
Odile Renaud-Basso, President, EBRD, said:
We are very proud to support a key sector for Tunisia at a time when digitalization and connectivity are of very high and ever-increasing importance. Partnering with the Tunisian government and the EU, we are contributing to the modernization 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, 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 modernized digital infrastructure, improved international connectivity, and new technologies, such as 5G and fiber, 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, European Union to Tunisia, added:
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 modernization 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.
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 mobilized more than EUR 600 million in grants, leveraging around EUR 5 billion in investments in key sectors such as energy, transport, and SMEs.
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