Tunisia's Financial Needs are on the Rise, Weighing on Businesses and Citizens
The Tunisian economy's financial needs are experiencing a worrying increase, which is starting to impact the daily lives of businesses and citizens. According to financial analyst Moez Hadidane, the state's budget deficit for 2026 is estimated to be around 11 billion dinars, a figure that highlights the magnitude of the challenge facing the country.
Defining a Clear Strategy
During his appearance on Express FM on Monday, Hadidane explained that this situation coincides with the state's desire to reduce external borrowing in favor of internal borrowing. This choice, which may seem technical, has very concrete consequences for the economy. On the one hand, it is perceived as a means of strengthening national sovereignty, limiting dependence on foreign financing, and repaying debt with fewer foreign currencies. On the other hand, it may prioritize state financing at the expense of the real economy, particularly small and medium-sized enterprises, which are essential to the country's economic vitality.
According to Hadidane, this orientation risks slowing down private investors, limiting investment, and consequently, growth and wealth creation. He also emphasized that large private banks, out of caution, tend to prioritize state financing, deemed safer, at the expense of businesses and local economic projects, particularly in this period where debt restructuring and rescheduling requests are multiplying.
The Need for External Financing
The analyst stressed that the country's structural current deficit cannot be covered solely by tourism revenue or financial transfers from Tunisians abroad. To fill this deficit, Tunisia must resort to external financing, whether through loans, foreign direct investment, or portfolio investments. According to him, foreign direct investment is particularly crucial, as it contributes to strengthening public finances and maintaining economic stability.
Three Main Orientations for External Borrowing
Moez Hadidane further specified that the state has three main orientations for external borrowing: budget financing, public project financing, and loans intended to be re-lent to public enterprises. While budget loans have decreased over the past three years, other types of financing have continued to progress.
The Urgency to Implement New Financing Mechanisms
The analyst concluded by emphasizing the urgency for the state to implement new financing mechanisms for businesses to stimulate investment, while defining a clear strategy to manage the budget deficit. He insisted on the need to reorient subsidies towards those who really need them, rationalize non-essential expenses, and prioritize investment in infrastructure. According to him, only an integrated and coherent vision can attract foreign direct investment and ensure sustainable growth for the country.
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