Tunisia is now the African country facing the highest default risk as the government remains reluctant to implement reforms to be eligible for an IMF package of $2 billion. With one of the world’s highest wage bills in terms of percentage to GDP, Tunisia under autocratic president Kais Saied, is unwilling to implement painful reforms that include cutting subsidies. As its public debt soars to $37 billion or 80% of the country’s GDP with a budget deficit of 10%, Tunisia is on the brink of default. President Kais Saied who overturned the democratic achievement of the country is using the migration card to get western aid. The terms of the IMF deal however need to be updated as the government delays reforms which president Saied fear would trigger protests against his autocratic rule.

Source: The North Africa Journal August 29, 2023 17:13 UTC