After dictator Ben Ali was ousted, Tunisia is the only country arisen from the Arab Spring with a secular constitution and, since 2014, an elected parliament and a president. However, the initial euphoria has given way to realism: while the revolution has brought democracy, it has hardly improved the economic situation. The country is only just starting a long process and is faced with common problems of young democratic systems: although the coalition of national unity that emerged from a fragmented parliament increases the legitimacy of the government, it is delaying urgently needed reforms. Germany has been supporting the ongoing transformation process since 2011 within the scope of Financial Cooperation (FC), particularly in the areas of sustainable economic development, water, energy and decentralisation. Tunisia has been a reform partner country of the German Federal Government since 2017 and since then two reform partnerships have been formed to support the Tunisian financial and banking sector and to modernise public administration.
Tunisia has a limited supply of water. Only around 450 cubic metres can be mobilised per year and per capita, making Tunisia what is known as a “severely water-stressed country”. Drinking water is supplied from groundwater and surface water, and the quality of supply still varies between urban and rural areas. While in cities virtually every household is connected to water supply systems, in rural areas around 6% of the population still has no connection. KfW's involvement in the sector is innovative and diversified: IWRM is the main focus in addition to coastal protection, desalination, sewage sludge and wastewater reuse. IWRM stands for Integrated Water Resources Management. It seeks to develop integrated planning tools for sustainable use and to adapt sustainable water technologies to different climate, environmental, economic and social conditions. In Tunisia, this applies particularly to agriculture, which is an important economic factor. Parallel to the rehabilitation of existing irrigation systems, the aim is to continue introducing more efficient irrigation methods (e.g. irrigation, drip irrigation) consistent with IWRM.
Project information - Coastal protection(PDF, 151 KB, non-accessible)
For many years, Tunisia has had a high percentage of employable young people, in particular well-educated academics and people in rural areas, who cannot be absorbed by the labour market. The country's economy is driven by micro, small and medium-sized enterprises (MSMEs), i.e. enterprises with fewer than 10 employees. They account for 98% of active businesses and 85% of jobs. The performance and growth opportunities of these companies are limited, among other things, by the lack of access to tailored financial services (e.g. loans and investment capital). This also limits their capacity to create new jobs. In addition, the pace of structurally necessary economic reforms has been very slow.
With the aim of promoting jobs, stabilising and increasing the efficiency of the Tunisian banking and financial sector, and supporting the introduction of necessary reforms, KfW Development Bank is implementing various projects on behalf of the German Federal Government, some of which are integrated into the Tunisian-German reform partnership that has been in existence since 2017. These include budget financing, credit lines to banks and leasing companies for needs-based MSME financing, participation in the Tuninvest Croissance equity fund to promote innovative enterprises and support in the establishment of a Tunisian development bank.
Project information – Injection of capital Tunisia(PDF, 154 KB, non-accessible)
In the greater Tunis metropolitan area, FC is promoting the climate-friendly and energy-efficient expansion of local public transport. The Tunis rapid transit system was the first of its kind on the African continent, the network, with a length of about 45km, was put into operation in 1985. The five rapid transit railway lines with a total length of 85km are now being expanded in the capital. The first expansion phase, for which a total financing package of around EUR 550 million is available, will be financed by KfW Development Bank, Agence Française de Développement and the European Investment Bank and will be supported by the European Commission's Neighbourhood Investment Facility (NIF). KfW is providing EUR 112 million in loans on behalf of the German Federal Government for the expansion of the network and the associated rolling stock.
Project information - Transportation Tunisia(PDF, 162 KB, non-accessible)
KfW Office Tunis
Director KfW Office: Beate Richter
Avenue Beji Caïd Essebsi
Imm. Le Boulevard, Bloc A, 2ème étage
Les Berges du Lac II - Cité des Pins
1053 Tunis
Tunisia
Phone: +216 71 967 215
Fax: +216 71 967 214