The Saudi Fund for Development has agreed to loan Tunisia $38 million to support rural development as the North African nation continues to face debt challenges.
The money will go towards the Oasis Hub project, which will reclaim over 1,000 hectares of agricultural land across various regions in Tunisia. It will also drill and equip 22 wells to expand infrastructure, and deliver over 285 housing units for residents, SFD said in a statement.
The project will invest in core infrastructure, including roads, pipelines and networks for potable and irrigation water, as well as educational institutions, agricultural facilities and cultural, social and commercial centres.
These efforts are expected to improve the quality of life and stimulate economic and social growth in Tunisia’s southern governorates, the statement said.
SFD has financed 32 development projects and programmes in Tunisia since 1975, providing concessional loans of over $1.2 billion, along with grants exceeding $105 million.
This month Tunisia’s finance ministry said in a budget statement that the country’s public debt was expected to rise to its highest level, about TND147.5 billion ($50 billion) by the end of 2025.
Figures from the Abu Dhabi-based Arab Monetary Fund showed Tunisia had the fourth highest debt servicing in the Arab world after Egypt, Lebanon and Jordan, standing at about $3.8 billion.
Saudi Arabia loaned Tunisia $55 million early last year to help renew its rail network.
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