KfW, the German Development Bank, on April 27, 2021, disbursed, on behalf of the German Federal Government, €75 million to support public sector reforms in Tunisia. This sum is the first tranche of funding for the “Support Program for Public Sector Reforms, Phase I”, whose agreement was signed in July 2020 with the Tunisian Government.
As a reminder, the objective of this program is to support Tunisia in the implementation of reforms, particularly in the public administration, but also in the tax administration and state enterprises for a more efficient and modern administration.
A programmatic approach (policy-based lending) has been adopted, in which the disbursement of the German contribution is linked to the achievement of reforms in these areas.
It should be noted that this financing is part of a multi-year international support program, to which KfW contributes together with other technical and financial partners of Tunisia.
The granting of this first tranche comes at an opportune time for Tunisia, during which the COVID-19 pandemic has revealed a number of issues in the public sector, which are addressed by the reforms undertaken.
Among other things, taxpayers benefit from easier access to teledeclaration and telepayment.
This protects citizens who, in the context of the pandemic, can safely carry out their tax transactions online.
At the same time, it guarantees a source of revenue for the State, even with the COVID-19 crisis and the associated restrictions.
In addition, the establishment of a legal framework for the digital identification of citizens will make access to public services easier and more convenient.
This will enable more efficient processes for both the government and users of public services.
The German Development Bank (KfW) acts on behalf of the German Federal Government. It supports reforms, infrastructure and financial systems for socially just economic growth in developing countries.