Assessment of Tunisia’s financing for sustainable development

Genesis was commissioned by the United Nations Development Programme (UNDP) to conduct a comprehensive development finance assessment (DFA) of the sustainable development financing landscape in Tunisia.

The study assessed the financing needs of Tunisia’s development priorities and the 2030 Agenda, the current trends and opportunities of the different development finance flows as well as the potential to expand the financing for Sustainable Development Goals (SDGs).

The diagnostic phase was essential for the elaboration of the National Integrated Financing Framework, which is foreseen as an outcome of this project. This framework will enable the Tunisian state to efficiently identify, mobilise and allocate the necessary resources for sustainable development. The DFA is the first step in a country’s Integrated National Financing Framework.

In line with UNDP guidance on the components of a DFA, the team conducted a needs assessment, a financing landscape analysis, a risk assessment, and an assessment of policy and institutional binding constraints.

After conducting a literature and policy review to identify Tunisia’s priorities in relation to the SDGs, a bottom-up costing of these priority SDGs was undertaken. To cost the SDGs, the team used a variety of tools: the ILO social protection floor costing tool, OneHealth tool, WaSH costing tool and Excel modelling. This showed the total financing needed to meet the priority SDGs.

The second phase involved an assessment of public and private financing flows in Tunisia from both domestic and international sources. The team was able to assess financing flows from both domestic and foreign sources, in the private and public sector. As part of the public financing assessment, a fiscal space analysis was conducted to calculate the budgetary room that could come from public sector reforms.

The third phase consisted of an assessment that identified and classified risks according to timelines, probability of occurrence and severity of impact.

The fourth phase assessed policy and institutional constraints that could hinder the attainment of the SDGs. Based on the financing gap identified by comparing the needs assessment with current financing flows and fiscal space, policy recommendations were made.

The final section of the report was in the form of a roadmap to implement the Integrated National Financing Framework in Tunisia.