Germany grants 150 million euros to Tunisia

14 Juillet 2020

Tunis, Tunisia, July 14 (Infosplusgabon) - Germany has granted a credit of 150 million euros to support the public sector in Tunisia, covering the extension of the Tunisia-German reform partnership and enhance the capacity of the Tunisian government to respond adequately to the COVID-19 pandemic.

The agreement was signed on Monday between the Tunisian Ministry of Development, Investment and International Cooperation and the German Development Bank (KfW), on behalf of the German Federal Ministry for Economic Cooperation and Development.

According to a press release from the German Bank, the funding is part of a multi-year international support programme, to which the KfW, the French Development Agency (AFD), the Japanese Agency for International Cooperation (JICA), the African Development Bank (AfDB) and the World Bank have made contributions.

It said the funds will help stabilize the Tunisian state budget and make the government deal appropriately with the crisis caused by COVID-19.

It also that the funding is part of the Tunisian-German reform partnership which Bonn and Tunis recently agreed to extend to the public sector.

It is aimed at improving the investment environment and making the Tunisian public sector more efficient and modern.

The coordinated programme will adopt a policy-based-lending approach, in which the disbursement of the German contribution is linked to the implementation of reforms in the fields of public administration, tax administration and public enterprises.

“The broadening of the reform partnership between Germany and Tunisia is a testament to the positive and fruitful nature of this initiative. The current objective is to lighten the burden of the Tunisian national budget in the long term through the desired reforms. In addition, the investment environment is expected to become more attractive through more efficient administration and reforms to the tax system. But the Tunisian people will also benefit from better services provided by the state, "said Dr. Joachim Nagel, member of the KfW board of directors.

FIN/ INFOSPLUSGABON/MOP/GABON2020

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