• The EBRD approved a loan of up to €190 million ($221 million) for Tunisia Telecom, alongside an €11 million EU grant.

• The financing will support 5G rollout, fibre expansion to 200,000 households, and connection to the Medusa submarine cable.

• The investment aims to strengthen Tunisia Telecom’s competitiveness amid declining revenue and intense market competition.

The European Bank for Reconstruction and Development (EBRD) announced last week a partnership with the state-owned company Tunisia Telecom. The bank will provide loans of up to €190 million, equivalent to about $221 million, to support the development of the operator’s telecommunications infrastructure. The financing package also includes an €11 million grant from the European Union.

According to the EBRD, the bank will disburse the loan in four tranches, including an initial committed tranche of €50 million. Tunisia Telecom will use the funds to upgrade its mobile access network from 4G to 5G, expand its fibre-optic network, and connect up to 200,000 households through fibre-to-the-home (FTTH).

In addition, the financing will support Tunisia’s connection to the Medusa submarine cable, the modernization of the transport network and core network, and targeted investments in energy efficiency and energy generation.

The European Union grant will support Tunisia Telecom’s investments in core network infrastructure and cybersecurity. The grant will also fund technical assistance for a broader transformation programme designed to modernize the national operator and support its growth strategy.

These investments come as Tunisia Telecom faces intense competition in the domestic telecoms market. Data from the National Telecommunications Institute (INT) showed that Tunisia Telecom served 4.5 million mobile subscribers in the third quarter of 2025, compared with 6.9 million for Ooredoo and 4 million for Orange.

In mobile internet, the public operator reported 3.36 million subscribers, versus 4.85 million for Ooredoo and 3.08 million for Orange.

Tunisia Telecom continued to dominate the fixed-line segment, however, with 1.3 million subscriptions, compared with 404,000 for Ooredoo and 291,000 for Orange. The fixed internet (ADSL) segment totaled 551,000 subscribers, including 225,000 for internet service provider Topnet, a Tunisia Telecom subsidiary, while the operator itself reported 102,000 subscribers.

The announced investments are expected to improve network coverage and service quality and enable the rollout of new services. As a result, Tunisia Telecom could retain existing customers, attract new users, and increase service consumption, which could support revenue growth.

For example, the plan to connect 200,000 households to fibre-optic networks could add 96 million dinars, or about $32.7 million, in annual revenue. This estimate is based on an average monthly fixed internet revenue per user of around 40 dinars in the third quarter of 2025, according to the INT.

Over the first nine months of the year, Tunisia Telecom reported total revenue of 921 million dinars, down from 1.48 billion dinars over the same period in 2024.

The infrastructure investments could also support Tunisia’s national digital transformation agenda, as authorities seek to leverage information and communication technologies to accelerate socio-economic development. The government has planned 138 projects to speed up the digital modernization of public administration over the 2025–2026 period.

“Through modernized digital infrastructure, improved international connectivity, and new technologies such as 5G and fibre, we aim to enhance services in education, healthcare, and smart cities, reduce the digital divide, and stimulate Tunisia’s digital economy,” said Lassaad Ben Dhiab, chief executive officer of Tunisia Telecom.

Tunisia currently ranks 86th out of 193 countries in the United Nations E-Government Development Index (EGDI). In 2024, the country scored 0.6935 out of 1, above African and global averages. However, Tunisia recorded a lower score of 0.5951 on the Online Services Index, which measures the quality, scope, and diversity of government digital services.

In cybersecurity, the International Telecommunication Union classifies Tunisia in the third tier of its global index. The organization said Tunisia performs relatively well on technical and regulatory aspects but needs to strengthen organizational capacity, skills development, and international cooperation.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange Jason Quenum