Tunisia is planning to cover half of the insurance premiums associated with exports to African markets under provisions in its 2027 budget bill, in a move aimed at helping Tunisian businesses expand across the continent.
The proposed measure is intended to reduce the financial risks and costs faced by exporters entering African markets, particularly in regions where payment delays, commercial uncertainty and difficulties securing trade finance can limit cross-border business.
The initiative places particular emphasis on opportunities within the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA), two frameworks designed to strengthen regional trade and economic integration.
Support to Be Funded Through Export Risk Guarantee Fund
Under Article 42 of the proposed budget bill, the subsidy would be financed through Tunisia’s Export Risk Guarantee Fund. The measure is designed to apply for 12 months from the law’s entry into force, with a possible 12-month extension authorised by the finance minister.
The proposal builds on a 2022 measure that introduced state support covering 50% of export insurance premiums for shipments to sub-Saharan Africa. The 2027 budget provision seeks to support Tunisian companies targeting a wider African market.
The draft budget was submitted to Tunisia’s parliament on 15 October 2026 for consideration. The proposed support is therefore not yet confirmed as enacted law.
Potential Boost for Intra-African Trade
Export insurance can help businesses manage the risk of non-payment and other commercial or political disruptions when trading across borders. By reducing the cost of insurance, Tunisia hopes to encourage more companies to explore new African markets and compete for regional business opportunities.
The initiative could be particularly relevant for small and medium-sized enterprises, which may have fewer resources to absorb losses or finance expansion into unfamiliar markets.
For African trade more broadly, the proposal illustrates how governments can use financial support mechanisms to help businesses take advantage of regional integration agreements. Its impact will depend on implementation, the exporters eligible for assistance and whether lower insurance costs translate into increased trade.