The European Bank for Reconstruction and Development (EBRD) is partnering with Tunisie Telecom, Tunisia’s national telecommunications operator, to support major upgrades to the country’s digital infrastructure and contribute to the company’s long-term transformation. As part of this collaboration, the EBRD will provide a development-linked loan of up to €190 million. The financing will be released in four stages, beginning with a confirmed first tranche of €50 million.
This investment will fund several key projects, including the upgrade of Tunisie Telecom’s mobile network from 4G to 5G, the expansion of its fibre network, and the connection of up to 200,000 Tunisian households to fibre-to-the-home technology. The financing also covers the modernisation of the company’s backbone and core networks and supports targeted investments in energy efficiency and energy production.
To improve Tunisia’s international digital connectivity, a portion of the loan will be used to support Tunisie Telecom’s link to the MEDUSA submarine cable. This Mediterranean subsea cable system, backed by the European Union and led by AFR-IX in Spain, stretches more than 8,000 kilometres and connects nearly 13 countries across Europe, North Africa and the Middle East.
In addition to the loan, the European Union is providing an €11 million grant through the Neighbourhood Investment Platform. This includes an investment grant to strengthen Tunisie Telecom’s core network and cybersecurity and a technical assistance grant to develop a comprehensive transformation programme for the company.
The transformation programme will focus on several priority areas, such as developing employee skills, implementing sustainability and energy-efficiency initiatives, strengthening digitalisation and cybersecurity, and supporting broader organisational reforms. These efforts aim to improve the company’s overall efficiency, resilience and competitiveness.
This financing marks the first time since 2012 that the EBRD has provided funding to a Tunisian public-sector entity without a sovereign guarantee. The loan is structured as a development-linked facility, which means the interest rate will depend on Tunisie Telecom’s progress in achieving key milestones related to sustainability and wider reforms of state-owned enterprises.
The project reflects the EBRD’s broader support for Tunisia’s digital sector and reinforces its partnership with the government to accelerate digital transformation. It complements the Bank’s ongoing efforts with the Ministry of Communication Technologies and the national telecom regulator to promote digital services, enhance competition and encourage innovation. EBRD President Odile Renaud-Basso emphasised the importance of the digital sector for Tunisia’s future and highlighted that this partnership will help strengthen connectivity with Europe while positioning Tunisia as a growing digital hub in the Mediterranean and African regions.
Tunisie Telecom CEO Lassaad Ben Dhiab stated that the investment demonstrates international confidence in Tunisia’s economy and supports the company’s vision for advancing the telecom sector. He noted that the planned upgrades in 5G, fibre and international connectivity will benefit key areas such as education, healthcare and smart cities, while also helping reduce the digital divide. EU Ambassador Giuseppe Perrone described the initiative as a milestone for Tunisia’s digital development. He explained that the joint support from the EU and the EBRD will accelerate the rollout of 5G, strengthen critical infrastructure, and enhance the country’s connection to the MEDUSA cable, all in line with Tunisia’s National Digital Strategy.
The EBRD’s financing is backed by a first-loss guarantee from the European Fund for Sustainable Development Plus through its Digital Transformation Platform, a flagship EU initiative aimed at narrowing the digital gap and promoting sustainable development in partner countries. This guarantee helps align the project with the EU’s Global Gateway strategy and supports the expansion of high-speed broadband infrastructure and digital solutions across Tunisia and the wider region.
Tunisie Telecom is a majority state-owned operator established in 1995. The company manages the country’s fixed and mobile networks, including its backbone infrastructure, the largest fibre network and a wide network of mobile towers. It also operates subsidiaries in Malta, Cyprus and Mauritania.
Since 2012, the EBRD has invested more than €3 billion in 89 projects in Tunisia and has supported around 2,000 small and medium-sized enterprises through EU-funded technical assistance. The European Union remains Tunisia’s largest investor and trading partner, supporting over 400,000 jobs. Following the establishment of a Strategic Partnership in 2023, the EU has mobilised more than €600 million in grants, helping attract nearly €5 billion in investments across major sectors such as energy, transport and SME development.
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