The European Bank for Reconstruction and Development (EBRD) has entered a major partnership with Tunisia Telecom, pledging loans of up to €190 million (approximately $221 million) to modernize the state-owned operator’s telecommunications infrastructure. The financing package, announced last week, includes an €11 million grant from the European Union.
According to the agreement, the EBRD will disburse the loan in four tranches, beginning with an initial €50 million. The funds are earmarked to upgrade Tunisia Telecom’s mobile network from 4G to 5G, expand its fiber-optic backbone, and connect up to 200,000 households via fiber-to-the-home (FTTH) technology. Additional projects include linking Tunisia to the Medusa submarine cable, modernizing transport and core networks, and investing in energy efficiency.
The EU grant will specifically support core network infrastructure, cybersecurity enhancements, and technical assistance for a broader corporate transformation programme.
This substantial investment comes at a critical time for the operator, which faces stiff competition in Tunisia’s mobile market. Data from the National Telecommunications Institute (INT) for Q3 2025 shows Tunisia Telecom holding 4.5 million mobile subscribers, trailing Ooredoo’s 6.9 million and slightly leading Orange’s 4 million. In mobile internet, it also sits behind Ooredoo.
However, the operator maintains dominance in fixed-line services, with 1.3 million subscriptions, far ahead of its competitors. The new infrastructure push is expected to improve network quality, enable new services, and help the company retain customers while attracting new users.
Notably, the plan to connect 200,000 additional homes to fiber could generate an estimated 96 million dinars ($32.7 million) in annual revenue, based on current average revenue per user.
The investment also aligns with Tunisia’s national digital transformation agenda, which includes 138 public administration modernization projects scheduled for 2025–2026.
“Through modernized digital infrastructure, improved international connectivity, and new technologies such as 5G and fiber, 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, CEO of Tunisia Telecom.
Despite scoring above African and global averages in the UN E-Government Development Index, Tunisia faces challenges in the quality of its online services and cybersecurity capacity—areas the new investments aim to strengthen.
TunisianMonitorOnline (NejiMed)
