World Bank Approves $90M Boost to Tunisia’s Social Protection System

The World Bank has approved $90 million in additional financing to strengthen Tunisia's social protection system, marking a significant step toward building a more inclusive, digital, and employment-linked safety net amid ongoing economic pressures.

The funding expands the Tunisia Social Development Promotion Support Project, deepening reforms that aim not only to provide financial assistance but also to connect vulnerable households to sustainable livelihoods.

Building on a $700 Million Foundation

The new financing builds on the success of the original $700 million programme, which over the past five years has delivered large-scale social support:

• 895,000+ households received emergency cash transfers

• 386,000 households enrolled in permanent support under the AMEN programme

• 150,000+ young children (0–5) benefited from family allowances

These interventions helped cushion the impact of economic shocks while laying the groundwork for a more structured social protection system.

Major Expansion: Support for School-Age Children

A central feature of the new package is the expansion of family allowances to older children, addressing a critical gap in Tunisia's social support framework.

The programme will:

• Extend benefits to approximately 450,000 children aged 6–18

• Target poor and low-income households

• Help reduce financial barriers to education

• Tackle school dropout rates, particularly among vulnerable groups

This shift reflects growing recognition that continued support beyond early childhood is essential for human capital development.

New National Disability Fund

The financing will also support the creation of a national disability fund, a major institutional reform aimed at improving inclusion.

The fund will:

• Provide dedicated financial transfers to persons with disabilities

• Simplify access to social and support services

• Strengthen protections for one of Tunisia's most underserved populations

From Assistance to Opportunity: Economic Inclusion Focus

Beyond direct cash transfers, the project introduces a stronger focus on economic empowerment, including:

• Pilot programmes linking beneficiaries to:

  • Self-employment opportunities

  • Wage employment pathways

• Support for transitioning households toward greater self-reliance

This marks a shift from traditional welfare models toward productive social protection, where assistance is paired with pathways to income generation.

Digital Transformation: Toward a Data-Driven System

A major pillar of the reform is the digitalisation of social protection systems, aimed at improving efficiency, transparency, and targeting.

Key initiatives include:

• Creation of an Integrated Beneficiary Registry

• Expansion of digital payment systems

• Improved data sharing across programmes

These measures will help:

• Reduce duplication and inefficiencies

• Ensure benefits reach the right households

• Enable real-time monitoring and policy adjustments

Toward a Unified and Sustainable System

The reforms also aim to harmonize Tunisia's fragmented social protection landscape by:

• Aligning social assistance and social insurance programmes

• Modernizing targeting mechanisms

• Strengthening fiscal sustainability

World Bank officials emphasized that the reforms go beyond short-term relief:

"This is about building a modern, integrated, and data-driven social protection system," said Mohamed El Aziz Ben Ghachem, Senior Social Protection Specialist.

Addressing Economic Pressures

Tunisia continues to face:

• High unemployment

• Fiscal constraints

• Rising living costs

In this context, strengthening social protection is critical to:

• Protect vulnerable populations

• Maintain social stability

• Support inclusive economic recovery

World Bank Country Manager Alexandre Arrobbio noted:

"By expanding support to school-age children and persons with disabilities, we are helping create better opportunities and protect vulnerable households."

A Strategic Shift in Social Policy

The additional $90 million financing signals a broader transformation in Tunisia's social policy framework:

• From fragmented programmes → Integrated system

• From emergency relief → Long-term resilience and inclusion

• From cash transfers → Pathways to employment and opportunity

Looking Ahead

As Tunisia advances these reforms, the focus will be on:

• Scaling digital systems nationwide

• Expanding economic inclusion initiatives

• Ensuring fiscal sustainability of programmes

If successfully implemented, the project could serve as a model for modern social protection systems in the region, combining financial support, digital innovation, and employment integration.