The African Development Bank's Shift on the Sfax Light Metro Project: A Reflection of Three Realities
The African Development Bank's (AfDB) change of stance on the Sfax light metro project, imposing stricter rules, reflects three harsh realities.
Reality 1: Tunisia's Sovereign Rating Downgrade
The downgrade of Tunisia's sovereign rating over the past three years has not gone unnoticed. As a financial institution, the AfDB must assess the risk of its financing. Tunisia's risk profile is among the highest, despite the country having respected all its commitments and meeting its deadlines. The institution has long invested in Tunisia, with its headquarters even located in the heart of the capital, making this decision regrettable.
Reality 2: The Failure to Reach an Agreement with the IMF
The failure to conclude an agreement with the International Monetary Fund (IMF) has also had an impact. For months, there were doubts about Tunisia's ability to avoid a payment default. This naturally affected all ongoing files with international financial institutions, including the AfDB. It is enough to look at the free fall of budgetary support provided by these institutions to Tunisia to understand that our position with the IMF was a determining factor for all financial flows towards Tunisia.
Reality 3: Pressure on Tunisia
These practices are nothing but pressure on our country. Tunisia's positions on several files do not necessarily please those on the other side of the Mediterranean or the Atlantic. Imposing an undeclared financial embargo is one of the means used to try to obtain concessions. Even our sovereign rating has paid the price, as countries with much weaker fundamentals are rated better than us.
The Way Forward
What matters most now is finding a solution to all this. The AfDB's conditions could be met elsewhere. A new financing plan is imperative, as we have no choice.
