Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 7/14/2019
Project financing is generally available for established borrowers.  However, Tunisian banks are often reluctant to deal with newer firms. Bankers describe the Tunisian market as one in which the supply of short-term commercial credit exceeds demand, although a significant lending gap is evident for start-ups and small and medium-sized businesses that do not have land or other types of traditional secured collateral.  Private equity and microfinance are underdeveloped in Tunisia.  This limits financing options for entrepreneurs and businesses.

For U.S. exporters to Tunisia, financing facilities are available through the Export-Import Bank of the United States (EXIM).  While EXIM lending has focused largely on transactions with state enterprises, EXIM is seeking greater private sector involvement in Tunisia.  U.S. companies competing for government tenders are advised to work closely with the U.S. Embassy in Tunis and EXIM once evidence of a foreign competitor’s ability to obtain concessionary financing becomes clear.
Excellent financing terms offered by European and Asian suppliers present an obstacle for U.S. companies.  However, EXIM will strive to match concessionary financing from foreign competitors' governments.

The Overseas Private Investment Corporation (OPIC) provides financial products such as loans and guarantees, political risk insurance, and support for investment funds, all of which help American businesses expand into emerging markets.  OPIC funding and insurance products are available for investment projects in Tunisia.  In March 2015, OPIC launched its support of up to $50 million of the Tunisia Credit Guaranty Facility in partnership with three Tunisian banks.  The facility expanded access to finance to more than 250 SMEs and franchise partners, boosted private sector growth, and supported or created thousands of jobs in key industries and sectors.    

U.S. companies may also take advantage of procurement opportunities funded by the African Development Bank (AfDB).  AfDB projects are available throughout the continent.  In November 2016, the AfDB opened a Regional Center for North Africa in Tunis.  From 1967 to 2017, the Bank financed about $9 billion worth of projects in Tunisia, making Tunisia the institution’s second-largest recipient of bank funding after Morocco.  Although AfDB's main goal is infrastructure development, there are opportunities across a variety of sectors in both private and public projects.  Recent AfDB assistance to Tunisia includes $65 million in funding for sanitation projects in small towns and $113 million for road connectivity in greater Tunis.
The U.S. Trade and Development Agency (USTDA) assists U.S. firms seeking contracts in the Tunisian market.  USTDA's services include funding for conducting feasibility studies, conditional training grants, and trade development missions.

The U.S. Agency for International Development (USAID) is helping the Tunisian private sector create more jobs while supporting the Tunisian government to move forward on a stronger fiscal and economic framework.  USAID created the Tunisian American Enterprise Fund (with $100 million in capital) to provide alternative investment in small and medium-sized enterprises, the engines of sustainable job creation in Tunisia.  USAID is also implementing the $59.5-million Jobs, Opportunity, and Business Success project, a five-year economic growth activity to help Tunisia’s small and medium-sized enterprises to grow, stimulate economic growth, and create jobs.  In addition, USAID is supporting the Tunisian private sector through a $12.5-million public-private partnership with Hewlett Packard, the government of Italy, and UNIDO to foster entrepreneurial spirit, enable enterprise development, and conduct entrepreneurship training in the interior regions of the country.  Additionally, USAID supports the Small Enterprise Assistance Fund’s CEED project ($5.6 million) to assist entrepreneurs to grow their businesses while providing training, mentoring and access to capital.  The $17.3-million Fiscal Reform for a Strong Tunisia activity is assisting the Ministry of Finance to strengthen fiscal foundations for sustainable and inclusive growth.

The World Bank Group’s International Bank for Reconstruction and Development (IBRD) supports a variety of projects in Tunisia.  IBRD focuses efforts in several areas, including the environment, financial sector, privatization and industrial restructuring, road networks, dams, and irrigation.  In 2018, the IBRD committed $240 million for two projects in irrigation intensification in agriculture and strengthening foundations for learning.

The European Investment Bank (EIB) is also active in Tunisia.  In 2017 the EIB signed funding agreements for $140 million to increase Banque de l’Habitat funding for SMEs and $190 million for the construction of the Sbikha-Jelma highway.

While U.S. companies participate in World Bank-financed projects in Tunisia, they may not be permitted to partake in EU-funded projects.

Multilateral Development Banks

The Commercial Service maintains Commercial Liaison Offices in each of the main multilateral development banks, including the European Bank for Reconstruction and Development, the African Development Bank and the World Bank.  These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development.  The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. 
Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development  the African Development Bank, and the World Bank.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Tunisia Market Access Project Financing