Tunisia water management reforms could support growth and jobs, World Bank says

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Tunisia water management reforms

Highlights

Tunisia’s GDP will grow 2.7 percent in 2025 and 2.4 percent in the first half of 2026 according to the World Bank Economic Monitor.
Water scarcity could cut Tunisia’s GDP by 6.4 percent by 2050 and threaten at least 30 percent of agricultural jobs if unaddressed.
The government’s Plan Eau 2050 foresees about U.S.$900 million in annual investment, with World Bank programs expected to create up to 17,400 jobs in the water sector’s first phase.

World Bank outlook links water stress to growth

Tunisia’s latest Economic Monitor from the World Bank says the country’s economy grows by 2.7 percent in 2025 and by 2.4 percent year on year in the first half of 2026, helped by a recovery in agriculture, mechanical and electrical industries, and tourism.

The report projects growth to slow to 2.3 percent in 2026 and to average 2.1 percent over 2027 and 2028. It also says unemployment falls to 14.9 percent in the second quarter of 2026, while women continue to face weaker labor market conditions, with unemployment at 21.6 percent, nearly double the rate for men.

The special chapter identifies water security as an increasingly important driver of economic growth and job creation. Tunisia has about 380 cubic meters of renewable freshwater available per person each year, below the international threshold for absolute water scarcity, and climate change and rising demand are expected to intensify the strain on resources.

Risks to agriculture and investment priorities

The World Bank estimates that water scarcity could cut Tunisia’s GDP by 6.4 percent by 2050 if no action is taken. Agriculture, which employs 14 percent of the national workforce and up to half of rural workers, is especially exposed, with water and climate stress potentially eliminating at least 30 percent of agricultural jobs by mid-century and reducing output across the sector.

The effects would also spread to tourism, agro-processing, industry and other water-dependent activities. At the same time, the World Bank Group-backed RESEau program, aimed at strengthening the resilience of Tunisia’s water sector, is expected to create about 4,000 permanent jobs and 13,400 temporary jobs in its first phase alone.

The report says last year’s gains in rainfall and reservoir levels offer short-term relief but do not change the long-term challenge. It says the government’s Plan Eau 2050, which envisions about U.S.$900 million in annual investment through mid-century, needs to be paired with reforms to governance, financial sustainability and utility performance, including modernization of the Water Code, a framework for treated wastewater reuse, better cost recovery with protection for vulnerable households, lower network losses, wider digitalization and stronger irrigation management.

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