The broad outlines of the new strategic country partnership framework (CPF) between Tunisia and the World Bank for the period 2023/2027 were presented on Thursday 22 June at a high-level conference in Gammarth, in the presence of Prime Minister Najla Bouden, World Bank Vice President for the Middle East and North Africa, Férid Belhaj, the Tunisian Ministers of Economy, Planning, Finance, Trade and Social Affairs, as well as the Governor of the Central Bank of Tunisia, the President of UTICA and several ambassadors accredited in Tunis.
The meeting marked “the official launch of this new five-year strategic partnership framework” between Tunisia and the World Bank, following the previous framework for the period 2016/2021.
The Prime Minister welcomed the renewal of this strategic partnership framework with the World Bank, which, she said, is one of Tunisia’s most important strategic partners, indeed the most important and oldest, with its first mission to Tunisia dating back to 1959.
She reviewed the action plans and programs implemented by her Government for economic recovery in all sectors, paying particular attention to the social aspect as a prerequisite for economic success, she said.
The Premier expressed the hope that this new cooperation strategy would help to unlock Tunisia’s economic potential, an objective to which all government action is geared.
For his part, Belhaj reaffirmed the World Bank’s long-standing and solid cooperation with Tunisia, adding that “this new strategy provides the framework within which the World Bank and Tunisia will be able to intensify programs that will unlock the country’s economic potential and promote a better future for its people”. He said that “Tunisia has been hit hard by the multiple global crises, but it has shown resilience”.
Alexandre Arrobbio, World Bank Resident Representative for Tunisia, who was responsible for outlining the new partnership framework, said that the World Bank would provide Tunisia with $2.9 billion in financial assistance over the period to finance all economic and social development projects and programs agreed by both parties.
Announcing the event in a press release on June 15, the World Bank stated that “these programs will help unlock Tunisia’s economic potential to achieve inclusive and sustainable growth”.
Boosting SMEs
The objectives of all these projects and programs include strengthening Tunisia’s human capital, creating quality jobs, improving resilience to climate change and reducing carbon emissions.
Particular attention will also be paid to new and renewable energies, the blue economy, food security, water, social protection and the gender dimension, so as to increase the integration of women and young people into the world of work.
Commenting on this new framework, the Minister for the Economy and Planning, Samir Saied, emphasized that “through this partnership, we aim to advance social protection, education, health and the improvement of the business climate in order to stimulate innovation and green growth, while reducing regional disparities and promoting social inclusion”.
In this context, Tunisian SMEs will have to play a key role in achieving all these objectives.
Part of the conference was devoted to this theme.
In February 2023, the WB Board of Directors approved a loan of 120 million dollars to Tunisia under the SME Economic Recovery Support Project. This project aims to remedy the liquidity problems facing Tunisian businesses by financing long-term lines of credit that will be on-lent by the Ministry of Finance to participating financial institutions for the purpose of granting loans to eligible small and medium-sized enterprises (SMEs).
“SMEs play a key role in the Tunisian economy. The COVID-19 pandemic and the war in Ukraine have led to macroeconomic imbalances in Tunisia that have exacerbated the difficulties faced by SMEs and weakened their performance and financial health,” explained Alexandre Arrobbio.
Through this project and other financial sector support programs, the World Bank, in collaboration with its partners, is continuing to support the Tunisian government’s recovery plan. This plan includes the implementation of crucial reforms aimed at strengthening financial sector regulation and supervision, further developing financial infrastructure and promoting broader financial inclusion”.
Part of the conference was devoted to this aspect of the recovery of Tunisian SMEs so that they can live up to the hopes placed in them.
ELMED and the blue economy
The Tunisian government and the World Bank are also continuing to work together to develop the blue economy in Tunisia. The World Bank has mobilized the PROBLUE Trust Fund to implement the second phase of technical assistance, which will consist of a series of analyses and advice on institutional policies, promotion of public and private investment, and support for strategic and operational dialogue with stakeholders.
Tunisia could become a regional hub in this field, thanks in particular to the ELMED project for an electricity link between Tunisia and Europe via Italy, in southern Tunisia, and the creation of a regional center of excellence for training in renewable energies in Tataouine, in southern Tunisia.
The conference also saw the signing of a financing agreement for this project between Tunisia and the World Bank.
However, beyond this long-standing and fruitful partnership between the World Bank and Tunisia, some analysts like to keep their distance, pointing out, among other things, the lack of an in-depth evaluation of the results of previous partnership frameworks.
In a recent article on a Tunisian website, Canadian academic Olfa Berrich wrote: “The World Bank has not carried out any prior evaluation of its past actions in Tunisia. None of the ten or so partnership frameworks with Tunisia has been evaluated in a neutral, objective and transparent way.
“Tunisians would like to see these evaluations and see for themselves where the billions of dollars that the World Bank has lent to Tunisia over the last decade have gone… What results have been achieved in terms of jobs, growth and welfare?
“It is important to take stock before moving on! It’s important to rebuild confidence and turn the page on the ups and downs that characterize the turbulent moods and relationships that associate Tunisia with the World Bank!
In this regard, Alexandre Arrobbio acknowledged that the results of the previous 2016/2021 framework did not meet expectations and stressed that “the new framework will be more flexible and adaptable to the situation”.
