A high-level delegation from the Islamic Development Bank (IsDB) conducted this Monday, October 19, 2026, a working visit in the governorate of Bizerte, as part of negotiations regarding the financing of a project to modernize and restructure the El Fouladh steel plant, located in Menzel Bourguiba.
Estimated at 330 million dinars, this project aims to triple the company’s production capacity and reach about 300,000 tons of steel per year.
Key Points
- 330 million dinars : estimated cost of the project.
- 300,000 tonnes per year : target steel production.
- Threefold : planned increase in production capacity.
- October 23, 2026 : scheduled closing date of the IsDB mission.
- Financing : negotiations are at an advanced stage, but final approval remains to be obtained.
A New Step in the Negotiations with the IsDB
Welcomed by the governor of Bizerte, Salem Ben Yacoub, the delegation of the Islamic Development Bank continues the discussions with Tunisian authorities to finance the renovation of several El Fouladh industrial units.
The governor stressed that this program builds on the directions announced by the President of the Republic, Kais Saied, following his visit to the factory on December 26, 2023.
For his part, the head of the IsDB delegation, Momar Sow, specified that this multi-day mission will allow meetings with the company’s managers, its partners and the various stakeholders involved, as well as visits to its industrial installations.
An Investment Aimed at Strengthening Domestic Production
According to El Fouladh’s Chief Executive Officer, Sami El Kobtani, the delegation’s visit represents the final stage of the ongoing negotiations concerning the financing and restructuring of the company.
The project notably includes the installation of a ladle furnace and continuous casting equipment, accompanied by engineering studies, civil works, steel structures and other industrial equipment.
The objective is to expand production capacity to better meet domestic needs for steel billets, currently partly met by imports, while preserving existing jobs.
The modernization should also enable improved industrial performance of the plant, in accordance with environmental requirements.
A Financing Decision Still Awaited
The CEO noted that the total cost of the project is estimated at nearly 330 million dinars.
At the end of its mission, the IsDB delegation will prepare a report to be transmitted to the competent technical committee. This committee will then draft a note to the bank’s board of directors to seek approval for financing.
The financing is therefore not yet definitively approved, even if discussions are in their final phase according to the company’s management.
More than $6.5 Billion mobilized by IsDB in Tunisia
The representative of the Islamic Development Bank in Tunisia, Habib Haouala, recalled that the institution has supported the country since its creation in 1975.
According to the figures he presented, the bank has financed more than 316 projects in several strategic sectors, for a total amount equivalent to 6.5 billion dollars.
He also indicated that a strategic cooperation document with Tunisia had been drawn up six months earlier, in coordination with the Ministry of Economy and Planning, within the framework of the 2026-2030 Development Plan.
Concerning Bizerte, he cited in particular the financings granted for imports by the STIR and El Fouladh companies, as well as support for 71 projects in the green economy, benefiting 631 developers.
Technical Visits Through Friday, October 23
The IsDB mission is expected to continue through Friday, October 23, 2026.
Its program includes meetings with the various El Fouladh departments, visits to production and support units, scrap-collection facilities, and the site planned for the new steelworks.
Meetings are also planned with representatives of the National Environment Protection Agency, as well as visits to several private rolling mills.
The mission is to conclude with a meeting at the Ministry of Economy and Planning.
Adel Khelifi
