Tunisia’s 2027 Budget: Tackling Climate Risks and Overhauling Financial Systems

The environment is everyone’s concern. In Tunisia, the intense heatwaves of summer 2026 have brought this issue to the forefront. Between power outages, water supply shortages, and agricultural losses reported by industry professionals, the repercussions extend far beyond the environment: they impact harvests, farmers’ incomes, and, ultimately, overall production.

In this context, the draft economic budget for 2027 outlines several measures to better cover risks associated with natural disasters and to prepare for the implementation of agricultural insurance. Furthermore, the document proposes several reforms to the financial system, aimed at facilitating financing for small and medium-sized enterprises (SMEs), consolidating the banking sector, and giving the stock market a larger role in financing the Tunisian economy.

Submitted on October 16, 2026, to the Finance and Budget Committee of the Assembly of the Representatives of the People (ARP), the document aligns with the 2026–2030 Development Plan. Among the key measures is the drafting of a bill on natural disaster coverage, while preparatory work for establishing agricultural insurance will continue. This is a significant challenge for a country where climate variability regularly puts agricultural activities to the test.

On the banking front, the focus is on consolidation. The program plans to continue addressing classified loans, accelerate the restructuring of certain institutions, and strengthen the services of the Tunisian Guarantee Company (Sotugar). A primary objective is to facilitate access to financing for SMEs—a often difficult hurdle for businesses seeking to invest or expand.

However, bank credit cannot be the sole gateway to capital. The project therefore aims to give the financial market a more prominent role by encouraging stock market listings, broadening the investor base, and developing new savings products. A dedicated digital platform for financial education is also under consideration to help savers make better-informed decisions. Additionally, the financial market could contribute more significantly to financing major projects, particularly within the framework of public-private partnerships. Another avenue being explored is sustainable finance, with the proposed creation of a national labeling system for green or sustainable companies and a sustainability index on the Tunis Stock Exchange.

The challenge now is to turn these plans into reality. Beyond the announcements, the true test will be translating these reforms from paper to practice and genuinely diversifying the resources available to Tunisian businesses and investors.