The deal involves a development-linked loan of up to €190 million, disbursed in four installments, starting with an initial €50 million tranche. This funding will enable extensive upgrades to Tunisia’s telecom networks, including transitioning from 4G to 5G, expanding fibre optic coverage, connecting up to 200,000 households to fibre-to-the-home services, and modernizing core and backbone networks. Additionally, targeted investments in energy efficiency and local energy production will be part of the project.
A key component of the initiative is improving international connectivity through financing the connection of Tunisie Telecom to the MEDUSA submarine cable, a major Mediterranean subsea network supported by the European Union and managed by Spanish company AFR-IX. Spanning over 8,000 kilometres, MEDUSA links nearly 13 countries across Europe, North Africa, and the Middle East, boosting regional digital integration.
Complementing the loan, an €11 million grant from the EU’s Neighbourhood Investment Platform will support the upgrade of core networks, cybersecurity, and a comprehensive digital transformation program aimed at strengthening the company’s operational resilience. This program will focus on critical areas such as skills development, sustainability, energy efficiency, digitalization, cybersecurity, and strategic reforms, ultimately aiming to improve efficiency, resilience, and competitiveness.
This marks the first time since 2012 that the EBRD has provided financing without a sovereign guarantee in Tunisia’s public sector, and the structure of the loan links interest rates to the achievement of key milestones, including sustainability targets and broader reforms of state-owned enterprises.
The project underscores the EBRD’s holistic approach to Tunisia’s digital sector and its partnership with the government to accelerate the country’s digital transformation. It complements existing initiatives with the Ministry of Communication Technologies and the telecom regulator, aimed at promoting e-services, boosting sector competitiveness, and fostering innovation.
Odile Renaud-Basso, President of the EBRD, expressed pride in supporting Tunisia’s digital sector, emphasizing that the upgrade will enhance connectivity to Europe and help position Tunisia as a key digital hub in the Mediterranean and African regions. Lassaad Ben Dhiab, CEO of Tunisie Telecom, highlighted that the partnership would modernize infrastructure, expand 5G deployment, and improve digital services in education, healthcare, and smart city projects, ultimately bridging Tunisia’s digital divide.
European Union Ambassador Giuseppe Perrone described the initiative as a significant step toward establishing fast, secure, and future-proof connectivity across the Mediterranean, strengthening EU–Tunisia relations and regional cooperation.
The financing is supported by a first-loss guarantee from the EU’s European Fund for Sustainable Development Plus (EFSD+), which aims to bridge the digital divide and promote sustainable growth. This aligns with the EU’s Global Gateway strategy to develop high-speed broadband infrastructure and digital solutions that foster inclusive economic development in Tunisia and neighboring regions.
Tunisie Telecom, established in 1995 and majority-owned by the Tunisian government, operates extensive fixed and mobile networks across Tunisia and subsidiaries in Mauritania, Malta, and Cyprus. Since 2012, the EBRD has invested over €3 billion in 89 projects in Tunisia and supported around 2,000 SMEs through EU-funded technical assistance. With the EU as Tunisia’s largest investor and trading partner, European companies support more than 400,000 jobs in the country, with over €600 million mobilized in grants and investments since the 2023 Strategic Partnership agreement.
