The European Bank for Reconstruction and Development (EBRD) and Tunisie Telecom have entered a landmark partnership to modernise Tunisia’s digital infrastructure and accelerate the national operator’s transformation. Under the agreement, the EBRD will provide a development-linked loan of up to €190 million, disbursed in four tranches, beginning with a committed €50 million.
The financing will support a multi-year investment programme to upgrade Tunisie Telecom’s mobile access network from 4G to 5G, expand fibre infrastructure, connect up to 200,000 households with fibre-to-the-home, and modernise the backbone and core network. Targeted investments in energy efficiency and energy production are also included.
A key component of the project is Tunisia’s connection to the MEDUSA submarine cable, a Mediterranean subsea network spanning more than 8,000 kilometres and linking nearly 13 countries across Europe, North Africa and the Middle East. Backed by the European Union and led by Spain’s AFR-IX, MEDUSA will significantly enhance Tunisia’s international connectivity.
The loan is complemented by an €11 million EU grant under the Neighbourhood Investment Platform. This includes an investment grant for core network and cybersecurity upgrades, as well as technical assistance to deliver a comprehensive transformation programme for Tunisie Telecom.
The transformation agenda will focus on skills development, sustainability, energy efficiency, digitalisation, cybersecurity and strategic reform. These measures aim to improve the operator’s efficiency, resilience and competitiveness while underpinning long-term growth.
This is the first EBRD financing to Tunisia’s public sector without a sovereign guarantee since 2012. It is also structured as a development-linked loan, with interest rates tied to the achievement of key milestones, including sustainability targets and broader state-owned enterprise reform objectives.
The project reflects the EBRD’s holistic approach to Tunisia’s digital sector and builds on its collaboration with the Ministry of Communication Technologies and the telecom regulator to promote e-services, competitiveness and innovation.
EBRD President Odile Renaud-Basso said the initiative would modernise Tunisie Telecom and enhance connectivity with Europe, positioning Tunisia as a digital hub across the Mediterranean and Africa. Tunisie Telecom CEO Lassaad Ben Dhiab said the partnership would enable 5G and fibre deployment to improve education, healthcare and smart city services while bridging the digital divide.
EU Ambassador to Tunisia Giuseppe Perrone described the investment as a milestone for Tunisia’s digital future, aligning with the National Digital Strategy, accelerating 5G, and connecting the country to the MEDUSA cable under the EU’s Global Gateway framework.
The financing is supported by a first-loss guarantee from the European Fund for Sustainable Development Plus through the EU’s Digital Transformation Platform. This aligns the project with Global Gateway priorities, advancing high-speed broadband, digital solutions and inclusive growth in Tunisia.
Tunisie Telecom, established in 1995, is the country’s majority state-owned telecom operator, managing the national backbone, the largest fibre network, and mobile infrastructure, with subsidiaries in Mauritania, Malta and Cyprus. Since 2012, the EBRD has invested over €3 billion in Tunisia, while the EU has mobilised more than €600 million in grants and leveraged around €5 billion in strategic investments since 2023.
