The World Bank said it was temporarily pausing some discussions with Tunisia after an outbreak of violence against Black migrants that African countries say was stoked by President Kais Saied. Tunisian bonds led losses in emerging markets.
(Bloomberg) — The World Bank said it was temporarily pausing some discussions with Tunisia after an outbreak of violence against Black migrants that African countries say was stoked by President Kais Saied. Tunisian bonds led losses in emerging markets.
Discussions on the World Bank’s Country Partnership Framework with Tunisia, which outlines “strategic directions for operational engagements” from 2023-2027, have been “temporarily paused,” according to a statement from the World Bank, citing its President David Malpass. Dialog and engagement with Tunisian authorities continues, it added.
Crackdown on Black Africans Fuels Attacks and Rebuke in Tunisia
Hundreds of sub-Saharan Africans have left Tunisia since Saied blamed Black residents for a rise in violent crime. Last month he ordered security forces to stop illegal migration and expel undocumented migrants. The crackdown has spread to migrants living legally in Tunisia and caused widespread racially-motivated violence.
“The safety and inclusion of migrants and minorities is part of our institution’s core values of inclusion, respect, and anti-racism in all shapes and forms,” the statement said.
African Union Cancels Tunisia Meeting After Censure Over Racism
Bonds Drop
Tunisian bonds led losses in emerging markets on Tuesday, with its 2025 note falling as much as 3%. The yield rose to nearly 32%, well above levels that investors typically consider to be “distressed.”
Tunisia has just over $2 billion in foreign-currency debt payments due this year, according to the government.
Saied has repeatedly dismissed the need to urgently secure foreign aid, but popular discontent over the economy is growing. Tunisians are struggling with shortages of staple foods including cooking oil, coffee and sugar. That’s in part due to government-imposed import curbs to save foreign currency.
Inflation reached an annual 10.4% in the North African country in February.
Ivory Coast, Mali and Guinea have started evacuating citizens that want to leave Tunisia. Human rights groups have accused Saied of fueling xenophobia to deflect from a growing economic and political crisis in the North African nation. He has defended his comments, saying he only wants to enforce existing laws.
The African Union has said it’s canceling a conference it planned to hold in Tunisia later this month, after criticizing the government over the attacks.
(An earlier version of this story corrected the amount of debt coming due this year.)
–With assistance from Philip Sanders.
(Updates with food shortages in the seventh paragraph, inflation in the eighth.)
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