Tunisie Telecom Secures €190 Million EBRD Loan to Drive 5G and Fiber Expansion
According to Developing Telecoms, the European Bank for Reconstruction and Development (EBRD) has granted a development-linked loan of up to €190 million (approximately US$221.2 million) to Tunisia’s state-owned operator, Tunisie Telecom. This loan is set to fund a wide-ranging upgrade to Tunisia’s digital infrastructure, playing a vital role in the operator’s transformation.
Major Investment in Tunisia’s Digital Future
In a bold move to overhaul its network infrastructure, Tunisie Telecom plans to utilize the EBRD loan to transition its mobile network from 4G to 5G technology, expand its fiber network, and connect as many as 200,000 Tunisian households to fiber-to-the-home (FTTH). The first tranche of €50 million (US$58.2 million) has already been committed, while subsequent tranches will follow based on performance milestones related to sustainability and state-owned enterprise (SOE) reform objectives.
Additional investments will be made in improving energy efficiency and embracing renewable energy technologies. The company will also connect to the Medusa submarine cable, a mammoth 8,000-kilometer Mediterranean subsea system linking 13 countries across Europe, North Africa, and the Middle East. Medusa, supported by the European Union (EU) and spearheaded by AFR-IX, aims to improve international connectivity throughout the region.
The Context: Tunisia’s Telecom Market and Beyond
This expansive investment comes at a critical time for Tunisia’s telecommunications sector, which is emerging as a pivotal enabler of economic growth in the region. With Internet penetration in Tunisia already at 66% as of 2023, according to DataReportal, the country’s push for 5G networks and extensive fiber coverage could help meet surging digital demands from businesses and consumers alike.
The collaboration between Tunisie Telecom, the EBRD, and the EU showcases growing confidence in Tunisia’s digital potential. The commitment of €11 million (US$12.81 million) in grants from the EU for cybersecurity, digitalization, and corporate transformation further bolsters the initiative. As of 2023, the EU remains Tunisia’s largest trading partner, accounting for 55% of its trade, with much of its economic activity reliant on tech-driven modernization efforts.
For competitors in the region, including private operators and neighboring state-owned networks, this investment could set a precedent for pursuing similar international partnerships to modernize their own infrastructures.
Future Outlook: Transforming a National Operator
This transformative program aims to position Tunisie Telecom as a competitive and efficient operator in a fast-evolving global telecom landscape. Experts anticipate that the migration to 5G—known for enabling IoT deployments, smart cities, and enhanced remote work—will significantly boost Tunisia’s technological capabilities. Fiber network expansion, meanwhile, lays the groundwork for reliable high-speed access, which is critical for local business innovation and international investment.
The performance-based nature of the EBRD loan adds a layer of accountability, ensuring that Tunisie Telecom not only scales its operations but does so sustainably. With the EBRD’s history of injecting over €3 billion (US$3.5 billion) across 89 projects in Tunisia since 2012, this partnership signals a long-term commitment to building a robust, future-ready telecom sector.
As Tunisie Telecom embarks on this transformation, telecom analysts suggest that the deal could inspire similar partnerships across emerging markets, where state operators often wrestle with limited funding. The focus on sustainability, energy efficiency, and cybersecurity also stands out as a model for public sector reform in the digital age.
Big Investments, Big Impacts: What’s Next for Tunisia?
This €190 million loan represents more than just numbers—it’s a critical step toward bridging digital divides and embracing new technological horizons in Tunisia. By modernizing key telecom infrastructure and setting tangible milestones for growth, Tunisie Telecom may unlock new opportunities for the nation’s economy and its citizens.
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