North Africa Faces New Financial Hurdles as AfDB Urges Reform

With global borrowing costs climbing, North Africa must pivot toward domestic capital and private partnerships to secure its economic future. During a recent summit in Tunis, policymakers and the African Development Bank identified a critical need to unlock underutilized regional assets to sustain long-term growth.

Editorial·July 9, 2026·reads: 315

North Africa Faces New Financial Hurdles as AfDB Urges Reform

The current economic landscape forces a departure from traditional funding models. Mohamed El Azizi, the African Development Bank’s Director General for North Africa, argues that the region must now leverage its own financial strengths—including substantial sovereign wealth funds, active private sectors, and a robust diaspora—to insulate against global instability. While the capital exists, barriers such as underdeveloped markets and limited financial intermediation currently prevent these funds from reaching productive sectors.

In Tunisia, the dialogue highlighted a strategy to bridge this gap through three core pillars. Beyond administrative modernization and tax base expansion, officials are prioritizing blended finance mechanisms to attract private investment. Remittances serve as a vital component of this strategy; in 2025, they reached approximately $2.96 billion, accounting for 6.5% of Tunisia’s GDP. Malinne Blomberg, the bank’s Deputy Director General for the region, emphasized that scaling these efforts requires deeper cross-border cooperation and the adoption of innovative financing models to ensure development remains both inclusive and self-sustaining.