The World Bank on Friday approved US$90 million in financing to help Tunisia strengthen its social protection system, expanding family allowances, disability support, and digital payment reforms for vulnerable households.
The funding, part of the Social Development Support Project, aims to improve the well-being of low-income families and children, while introducing structural reforms to make transfers more efficient and inclusive.
Under the programme, family allowances will be extended to roughly 450,000 school-age children between six and 18 years old. Authorities hope this expansion will reduce inequality in access to education and help lower dropout rates, particularly in disadvantaged regions.
The initiative also includes the creation of a national fund for people with disabilities to finance benefits supporting their social and economic inclusion. “This additional financing reflects our continued commitment to supporting Tunisia in building a social protection system that is more comprehensive, adaptive, and resilient,” said Alexandre Arrobbio, the World Bank’s operations manager for Tunisia. “By expanding family allowances to school-age children and strengthening support for persons with disabilities, we are helping protect vulnerable households and support better opportunities for children across the country.”
The programme also promotes structural reforms to improve the efficiency of the system. Officials plan to create a unified beneficiary registry and expand digital payments to increase transparency in transfers. Pilot programmes combining jobs and self-employment initiatives will be developed to strengthen the financial independence of beneficiaries.
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Tunisia has struggled with subdued economic growth since the 2011 revolution. Average GDP growth was just 1.7 percent between 2011 and 2019, compared with 3.5 percent in the decade before. Unemployment remains high at 16.4 percent in the fourth quarter of 2023, while food price inflation reached 10.2 percent in March 2024, disproportionately affecting low-income households.
In response to these pressures, the Tunisian government launched the “AMEN” programme, its main social protection scheme, which provides assistance to vulnerable populations. The new World Bank financing builds on an initial $700 million programme implemented over the past five years. That earlier programme delivered emergency cash transfers to more than 895,000 households and provided regular assistance to over 386,000 families, while more than 150,000 children under six received family allowances.
“Strengthening social protection is critical to help vulnerable families cope with economic shocks and provide better opportunities for children,” said Arrobbio. “The reforms under this project will support more efficient targeting and improve the delivery of benefits.”
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Experts say Tunisia’s social protection system faces challenges from limited coverage, fragmentation of programmes, and dependence on cash-based transfers. By improving digital payment mechanisms and consolidating beneficiary information, authorities hope to enhance efficiency, reduce leakages, and expand reach to populations previously excluded from support.
The initiative comes amid broader economic reforms aimed at boosting inclusive growth and resilience. Officials say expanding financial inclusion, particularly for women, youth, and marginalized communities, is a priority. The pilot projects for self-employment are expected to complement cash transfers by creating pathways toward economic independence for beneficiaries.
With the new $90 million injection, Tunisia seeks to reinforce social safety nets at a time when persistent unemployment, inflation, and regional disparities continue to challenge the country’s socio-economic stability.
The World Bank said the programme reflects a commitment to supporting Tunisia’s efforts to make social protection more adaptive, resilient, and capable of responding to both current and future economic pressures.
