Tunisia Faces Economic Stagnation as Water Scarcity Threatens Jobs

The country’s economic recovery remains fragile, with growth projections dipping from 2.7 percent in 2025 to a forecasted 2.1 percent average between 2027 and 2028. While overall unemployment hit 14.9 percent in mid-2026, the burden is split unevenly; female unemployment remains stuck at 21.6 percent. Beyond these immediate fiscal hurdles, the long-term stability of vital sectors—including agriculture, which sustains 14 percent of the workforce, and tourism—is now tied directly to water security.

Strategic Shifts in Water Management

Climate change continues to amplify the strain on limited supplies, threatening to eliminate nearly one-third of agricultural jobs by mid-century. To counter this, the government has launched the Plan Eau 2050, a $900 million annual investment strategy aimed at upgrading infrastructure and governance. Ahmadou Moustapha Ndiaye of the World Bank emphasizes that infrastructure alone is insufficient; the nation must also prioritize a modernized Water Code, improved wastewater reuse, and digitalized irrigation management. Programs like the RESEau initiative are already attempting to bridge the gap, targeting the creation of over 17,000 permanent and temporary roles to build a more resilient, water-secure economy.