AFRICAN ECONOMIES

Better ports and logistics infrastructure will boost Tunisia’s economy

By our African Marketing Confederation News Team | 2025

World Bank report paints positive picture, but emphasises that enhancing ports and related infrastructure could boost GDP by 4-5%.

Tunisia’s economy is projected to grow by 1.9% in 2025, up from 1.4% in 2024, supported by improved rainfall and gradual stabilisation across key sectors of the North African nation.

While manufacturing continues to face challenges, resilience in tourism and agriculture are contributing to the recovery, according to the World Bank’s latest economic update for Tunisia, titled ‘Better Connectivity to Grow’.

Growth is expected to stabilise at around 1.6% to 1.7% in 2026–2027, the World Bank predicts. It adds that, although global trade uncertainties and limited external financing could pose some challenges, stronger reform momentum within the country may help to improve Tunisia’s medium-term outlook.

Inflation has continued decelerating and is now nearing pre-pandemic averages. Food inflation stands at 7.3%, driven by seasonal and supply-side pressures. In response to the easing trend, the Central Bank of Tunisia recently reduced its key interest rate to 7.5%, marking its first rate cut in over two years.

Tunisia’s current account deficit narrowed to 1.7% of GDP in 2024, supported by improving terms of trade and resilient income from tourism, the World Bank states.

A scene in Tunis, the capital city of Tunisia. Photo: Chermiti Mohamed, Pexels

At the same time, recent increases in energy imports and a slowdown in export volumes widened the trade deficit in the first quarter of 2025, posing some challenges to the balance of trade. On the positive side, public spending was contained.

Logistics and supply chain

The report includes a special focus on Tunisia’s trade connectivity, highlighting the significant economic potential of improving the country’s port system. The World Bank believes that enhancing ports and related infrastructure connectivity could boost GDP by 4-5% within three to four years.

“Achieving the levels of port connectivity of regional peers through targeted infrastructure improvements could generate gains of 2.6-3.5% of GDP, while tackling institutional bottlenecks in customs and logistics could yield over one percent in additional gains,” the report states.

“Tunisia continues to show resilience amid a complex global and domestic environment,” says Alexandre Arrobbio, World Bank Country Manager for Tunisia. “Better connectivity, especially through improved port logistics, can be a powerful engine for job creation and economic growth.”.

In the longer term, positioning Tunisia as a trans-shipment hub could deliver even larger benefits of around 11-14% of GDP.

The report recommends a mix of infrastructure upgrades – such as new terminals, equipment modernisation and port access improvements – and institutional reforms including revised port tariffs, digital systems modernisation, and enhanced railway-port connectivity.

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