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Much of the rest of the country's land is fertile soil.

Its 1,300 kilometres (810 miles) of coastline includes the African conjunction of the western and eastern parts of the Mediterranean Basin and, by means of the Sicilian Strait and Sardinian Channel, features the African mainland's second and third nearest points to Europe after Gibraltar.

While key market players (mobile network operators, microfinance institutions, financial sector regulators) agreed that the regulatory framework restrained the development of digital financial services, they disagreed on which sectoral reforms were necessary and lacked a detailed understanding of what the existing regulations permitted.

Dialogue was not producing any results and tensions among private and public actors, as well as among public actors themselves, were rising.

The first joint announcement by the BMBF and the Tunisian Research Ministry (MESRS) to fund bilateral research projects was published in 2012. The German-Tunisian education, research and innovation cooperation has been strengthened and expanded since 2011.

In 2016, Tunisia is to become associated with the EU programme Horizon 2020.

For the Federal Ministry of Education and Research (BMBF), the International Bureau (IB) funds measures and projects for the Scientific and Technological Cooperation (STC) with Tunisia as part of the current BMBF announcements.

Yet despite the compelling evidence that digital financial services offer huge opportunities to expand financial inclusion by reducing costs, improving user experience, and reducing proximity barriers, less than four percent of Tunisians use mobile financial services. What does it take to move a market beyond stalemate?

A recent experiment by the World Bank and CGAP in market facilitation provides useful insights. As early as January 2011, the Tunisian Central Bank worked on improving the regulatory framework for digital payments.

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