🇹🇳TunisiaNorth Africa
Tunisia's STEG faces governance crisis as new loans approved amid mounting debt
via Business News4 min read
The financial situation of the Tunisian Electricity and Gas Company STEG is under scrutiny in Parliament following the approval of new financing commitments. The Finance and Budget Committee of the Assembly of People's Representatives approved two draft laws on June 29, 2026, related to state guarantees for loans from the International Bank for Reconstruction and Development IBRD, totaling approximately 1.4 billion dinars. These funds are part of a 2024-2028 program contract between the Tunisian state and STEG. Issam Chouchen, a Member of Parliament and member of the Finance Committee, highlighted STEG's difficult financial spiral, characterized by repeated borrowing without sustainable structural improvement. He stated that STEG's total debt exceeds 7 billion dinars, while unpaid customer debts from individuals, businesses, and public institutions are over 6 billion dinars, putting continuous pressure on the company's cash flow. Chouchen believes that at least 12 billion dinars would be needed to restore STEG's financial balance. He noted that Parliament has approved several STEG financings in recent years without resolving structural imbalances, citing the slow progress of the Tunisia-Italy electrical interconnection project. Chouchen emphasized that STEG's core problem lies not just in financing but in internal governance and structural dysfunctions, including electricity theft, which he estimates affects entire neighborhoods and significantly contributes to network losses
Free daily or weekly digest of the most important stories from across 18 African countries. No spam, unsubscribe any time.
This summary was AI-generated from a story originally published by Business News.
Must ReadThe World Health Organization WHO announced that the heatwave affecting Europe since June 21 has been linked to over 1,300 deaths. The organization also cautioned that the situation could worsen as several countries continue to experience exceptionally high temperatures. On Sunday, June 28, WHO Director-General Tedros Adhanom Ghebreyesus stated on X that over 150 million people are currently exposed to extreme heat across the continent. He reiterated that Europe is the fastest-warming region globally, with temperatures rising approximately twice the world average. The WHO emphasized that extreme heat episodes are among the deadliest climate risks, with vulnerable populations including the elderly, infants, pregnant women, individuals with chronic illnesses, and outdoor workers being particularly exposed. The organization urged authorities to strengthen preventive measures, such as increasing health alerts, protecting vulnerable groups, and adapting healthcare systems to handle more frequent heatwaves. The heatwave is impacting much of Western and Central Europe, with France, Spain, Portugal, Italy, Germany, and the Balkans experiencing temperatures locally exceeding 40 °C, leading to significant consequences for health services, transportation, and fire risks. In France, authorities placed several departments on maximum alert, closed schools, and reinforced hospital capacities to manage the influx of patients with heat-related conditions. The WHO attributes these extreme even
Must ReadThe European Union expressed deep concern on Saturday, June 27, 2026, following the 25-year prison sentence handed to Sihem Bensedrine. In a statement from its spokesperson, the EU described Sihem Bensedrine as an "emblematic human rights defender" and highlighted her role as the head of the Truth and Dignity Commission IVD, which was responsible for leading Tunisia's transitional justice process. Brussels emphasized that Sihem Bensedrine played a central role in coordinating the IVD's work, whose recommendations are considered by the European Union to be of "particular importance" within Tunisia's transitional justice framework. The EU reiterated its support for this process since its inception, viewing it as a cornerstone for consolidating the rule of law. The European Union also reaffirmed its "unwavering commitment" to Tunisia and its people, assuring continued support for strengthening democratic institutions and respecting human rights. In its statement, the EU urged Tunisian authorities to "restore an environment conducive to pluralism and the expression of independent voices," deeming these conditions essential for the country's development. This stance follows Sihem Bensedrine's 25-year prison sentence in a case related to her duties as head of the Truth and Dignity Commission, a decision that continues to draw reactions nationally and internationally.
The Finance and Budget Committee of the Assembly of People's Representatives has approved two draft laws, n°38 and n°39 of 2026, concerning state guarantee agreements for the Tunisian Electricity and Gas Company STEG. These laws, examined under an urgent procedure, relate to two loans totaling $430 million. This funding aims to support the energy sector's efficiency, performance, and governance in Tunisia. Draft law n°38 authorizes the ratification of a $400 million loan agreement signed on November 3, 2025, between Tunisia and the International Bank for Reconstruction and Development IBRD for STEG. Draft law n°39 approves a second guarantee agreement, concluded on the same date between Tunisia and the IBRD, acting as the implementing entity for the Clean Technology Fund, for a $30 million loan also for STEG. The parliamentary committee's approval is a preliminary step before the agreements are reviewed in a plenary session for final ratification. These financings come as STEG faces significant financial challenges, with its public debt reaching 7.356 billion dinars as of June 23, 2026.