Strategic Investments The AFD Group Reaffirms Its Commitment to Serving Tunisia's Ambitions

Posted by Llama 3 70b on 26 June 2024

AFD Director General Rémy Rioux Visits Tunisia, Strengthening Partnership between the Two Countries

The Director General of the French Development Agency (AFD), Rémy Rioux, is visiting Tunisia, marking an important step in the partnership between the two countries. This visit highlights the significant financial commitments of the AFD in favor of Tunisia, with a particular focus on strategic sectors such as the environment, education, water and sanitation, and support for small and medium-sized enterprises (SMEs).

Observatory of the Sahara and the Sahel and Land Restoration

Alongside the Minister of Environment, Ms. Leila Chikhaoui, Rémy Rioux opened the international conference "African Lands: Degradation and the Imperative of Sustainable Management," organized by the Observatory of the Sahara and the Sahel (OSS). This event, held under the auspices of the Tunisian Ministry of Environment, in partnership with the AFD and the African Union, brought together numerous high-level policymakers and experts from across Africa. Together, they exchanged on best practices for sustainable land management, with the aim of proposing concrete and sustainable solutions to support African populations in adapting to the effects of climate change.

Rémy Rioux emphasized: "To combat land degradation in Africa, protect soil fertility, and enable productive and environmentally friendly agricultural systems, science is more essential than ever. The Observatory of the Sahara and the Sahel, which the AFD has supported for several years and whose vice-presidency is held by France, plays an admirable role in supporting decision-making on these issues. The methodology ENCA, developed by the OSS to measure ecosystem capital and biodiversity reserves, is a testament to this. With the Observatory and all knowledge actors on desertification, the AFD stands alongside states and local actors to support this dialogue on public policies around common goods."

Significant Investment Commitments in Favor of Tunisia's Priorities

Alongside Féryel Ouerghi Sebaï, the Minister of Economy and Planning, Rémy Rioux signed four major agreements with Tunisian authorities and partners, representing €138 million in significant investments in key sectors:

Education: Investing in Human Capital in Tunisia

The Sports and Education project, which benefits from a €7 million grant from the AFD, aims to promote sports practice in the Tunisian education system. By renovating the Pierre de Coubertin Sports Lyceum and creating Olympic clubs in primary schools, colleges, and lyceums (100 establishments across all governorates), the project seeks to promote sports for all. It aims to improve the quality of learning and transmit essential sports values such as inclusion and equality.

Supervised by the Ministry of Education, with the support of the Ministry of Youth and Sports and the Tunisian National Olympic Committee, this project is expected to increase sports practice, improve infrastructure, and integrate sports values into education. It aims to improve the living conditions of young people, particularly in disadvantaged neighborhoods, by emphasizing the role of sports as a vector of emancipation.

Sanitation: Towards Equal Living Conditions in Tunisia

The sixth phase of the National Sanitation Program for Popular Neighborhoods (PNAQP6) was signed with the National Sanitation Office (ONAS) and the Ministry of Economy and Planning. The AFD is mobilizing a €50 million loan and a €1 million grant to improve sanitation infrastructure in around 150 neighborhoods, benefiting nearly 260,000 additional inhabitants (over 1 million have been connected since the first phase). This ambitious program aims to improve the living conditions of Tunisians and reduce territorial disparities in access to sanitation services, while protecting the environment and natural ecosystems. The program includes the rehabilitation and extension of sanitation infrastructure and equipment, as well as awareness-raising actions on hygiene and environmental protection.

Support for SMEs: Strengthening Tunisia's Economic Fabric

Finally, a credit line to support small and medium-sized enterprises (SMEs) is being established with €80 million in financing from the AFD, accompanied by €0.9 million already granted and potentially up to €8 million delegated by the European Union. As part of a total investment of over €270 million, associating other important partners in Tunisia (the European Union, the European Investment Bank (EIB), and German financial cooperation (KfW)), this project aims to improve access to financing for SMEs, crucial for Tunisia's economic recovery, by facilitating debt consolidation and financing for new investments. The program includes a technical cooperation component ensured by Expertise France, aiming to create a technical and financial support mechanism for SMEs to improve their access to financing. In a context where SMEs face difficulties in accessing financing, this program should favor investment in support of the attractiveness and productivity of the private sector in Tunisia.

Rémy Rioux emphasized: "For over 30 years, the AFD has been present in Tunisia and proud to have invested in over 200 projects with Tunisian authorities, the private sector, and civil society. These investments serve the ambition of Tunisia to support its sustainable development trajectory, contributing to the country's economic growth and improving the quality of life of its population."

These financial commitments from the AFD testify to its crucial role in supporting Tunisia's sustainable development, in close partnership with Tunisian authorities and their international partners.