Tunisia, a middle-income country, achieved an annual average growth rate of 5.2% for the 2005-2008 period. The active, but prudent policy of opening up the country's economy, accompanied by support and incentives for businesses and industry, made it possible to successfully establish the Tunisia-EU Free Trade Zone in January 2008 and to end the Multifiber Agreements.  Tunisia has also entered into a new phase of opening up its economy, which will have to diversify its products and trading partners: the EU, with 80% of exports, is its leading partner. The impact of the current crisis is thus mainly expected on the real economy, and investment will be the key variable to achieve the growth target of 5% in 2009.

Development Policy

Socially, the proactive policy has made it possibel to improve social indicators in a country where virtually all children attend primary school and where girl-boy parity has been reached in the primary and secondary grades. The population was estimated at 10.3 million in 2007, that is, an average density of 63 inhabitants per km2 and an annual population growth rate of 1.1%. The majority of the population lives in cities (64.8%), especially in the Greater Tunis Area (20%). The per capita GDP was US$ 2,970 in 2007. According to the Human Development Index (HDI) of the 2007 Human Development Report, Tunisia is ranked 91st out of 177 countries. The poverty rate was 2.4% in 2004, compared to  4.2% in 2000. However, the unemployment rate has remained relatively high at 14%, with unemployment rate among young graduates, in particular, becoming a national concern.

Bank Group Strategy

Approved on March 28, 2007, the Tunisia Country Strategy Paper is based on the Tunisian government’s 11th Plan for 2007-2011. The Bank’s 2007-2011 Operations Strategy for the country retained the following 3 pillars:

• strengthening of macroeconomic policies and acceleration of reforms
• modernization of infrastructure and strengthening of the productive sector
• consolidation of human capital

Since starting operations in Tunisia in 1968, the Bank Group has financed over 91 operations for cumulative net commitments of over UA 3,330 million. In November 2008, the active portfolio contained 11 operations, representing net commitments of UA 574.81 million and a disbursement rate of 72%. It comprises:

• 5 agricultural and rural sector projects
• 3 transport sector projects
• 1 energy project;
• 1 industrial project
• 1 education project. In addition, two new projects approved in 2008 were the Road Programme V (UA 162.50 million, ADB window) and the Hasdrubal Gas Project (US$ 150 million, private sector window).