“I say it loud and clear to the entire world: we will bow only before Almighty God. In the Quran, there is no surah named after the International Monetary Fund!” This is how Tunisian President Kaïs Saïed expressed his vision of a sovereign and independent Tunisia during a visit to Redeyef, near the Algerian border.
However, these words are out of step with reality. While the president portrayed himself as a defender of a self-sufficient Tunisia, his ministers were busy seeking loans from foreign banks and countries to secure vital funds for an economy on the brink of collapse.
These loans, although necessary, have led to drastic economic reforms that have resulted in significant food shortages and fueled popular discontent. The first measure was the removal of subsidies on basic food products, a decision that caused shortages, particularly of durum wheat, soft wheat, and vegetable oils, and led to a 64% drop in the trade balance in November 2023. These subsidies, established during Bourguiba’s era, were abruptly ended without proper preparation, exacerbating the situation.
Even though Tunisia no longer relies on the IMF, it has taken out loans from countries across three continents. In this way, it borrowed €810.5 million from Europe and received $1.62 billion from international, African, Arab, and Asian financial institutions over the past two years.
On July 2, 2024, Finance Minister Sihem Namsia announced that Tunisia had repaid all its domestic and foreign debt services for 2023, an amount of approximately $2.7 billion, which the government presented as a success. But this “success” was achieved at the cost of massive borrowing, further worsening the country’s economic and social situation.
Tunisians, facing shortages of basic necessities, endure scenes of endless queues to obtain rice, sugar, or flour. These shortages and the general impoverishment have fueled growing anger.
And now? Inflation remains unchecked, the dinar continues to depreciate against the euro, and economic growth is almost non-existent. Faced with these challenges, it is imperative to find solutions before future generations are left to pay the price for today’s mistakes, often exploited for electoral purposes.
Ahmed Lagha
Cofounder and Treasurer
Ahmed Lagha
Cofounder and Treasurer
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