Tunisia Drives Digitization Agenda Forward While Navigating Privacy and Security Risks

Tunisia's digital transformation has reached a critical juncture with the implementation of E-Houwiya, a state-recognized digital identity system. E-Houwiya, a key pillar of the country's 2025 digital strategy, aims to improve financial inclusion by providing secure access to banking and fintech services while facilitating authentication on digital government platforms. However, Tunisia's broader push toward digitization, including biometric identity efforts and digital service platforms, has raised significant concerns about privacy and data security.

Tunisia's Digital Identity Revolution: The E-Houwiya System

Launched in Tunisia in August 2022, E-Houwiya is a nationwide digital identity system designed to provide a secure, state-recognized online identity. The development of E-Houwiya was made possible through collaboration between the Tunisian government and the Estonian e-Governance Academy (eGA). In 2022, Tunisia's Ministry of Communication Technologies and eGA signed a memorandum of understanding to advance digital transformation and develop the e-identity landscape.

The E-Houwiya digital identity system, developed under the supervision of Dr. Nizar Ben Neji, aligns with Tunisia's 2025 Digital Strategy by increasing financial inclusion and securing online transactions. The system is now integrated into banking sectors, allowing remote onboarding, KYC (Know Your Customer) compliance, and secure financial transactions. E-Houwiya has 200,000 mobile identity users, including 15,000 Tunisians living abroad, and provides seamless authentication, digital signatures, and online access to government services. It functions as a single sign-on (SSO) system for portals like E-Bawaba and E-CNAM, simplifying user access and reducing data fragmentation.

E-Houwiya is a legally valid digital signature equivalent to handwritten signatures, issued through secure verification. It enhances e-government access while protecting data security and privacy. Although its implementation has become increasingly important for digital services, to achieve sustainability, E-Houwiya must rapidly expand its user base. As Tunisia advances in digital transformation, this system serves as a foundation for secure, efficient, and inclusive online interactions.

Digitization Plans and Raised Privacy Concerns

A recent report by Access Now indicated that Tunisia's digital transformation progress, embodied in three main programs (the biometric identity project, E-Houwiya mobile identity, and the subsidy compensation platform), raises questions and concerns related to privacy, data security, and human rights. The report stated that these projects, which it says were developed with limited transparency and public consultation, may carry the potential for increased surveillance or risks related to identity theft or data exploitation.

The report adds that the proposed biometric identity project, which the report describes as somewhat ambiguous, may require citizens to provide biometric data to the Ministry of Interior. The report believes that Tunisia's current data protection regulations, along with previous cyberattack incidents, make the security of the biometric database a concern. At the same time, the report indicates that the E-Houwiya mobile identity system lacks sufficient clarity on data management details, legal safeguards, and monitoring mechanisms, which, according to the report, raises concerns about the possibility of government overreach or misuse of personal information.

The report also mentioned that the subsidy compensation platforms, designed to facilitate cash transfers, did not fully follow the procedures stipulated in data privacy laws, as the relevant authorities did not consult the National Authority for Personal Data Protection (INPDP) to conduct the legally required impact assessments. The report believes that without strong security guarantees, these initiatives may raise concerns that they could be used for surveillance purposes rather than empowerment. The report recommends updating privacy laws, enhancing transparency, and involving civil society to ensure digital projects align with citizens' rights.

Digital Transformation and AI Strategy Unveiled

Tunisia is developing its digital identity and AI plans to modernize public services and boost its digital economy, according to Communication Technologies Minister Sofiene Hemissi. Tunisia's plan focuses on digitizing government services, improving digital infrastructure, and promoting AI use in vital sectors such as health and education. The AI strategy, scheduled to launch in 2025, will support open data and technology industries. Tunisia ranks 8th in Africa in ICT development according to the ITU and leads North Africa in e-government according to the UN.

Digital Strategy and Key Global Partnerships

A recent report highlights that Tunisia's startup landscape has strengthened global partnerships in 2024, particularly in digital transformation, payments, and digital identity. Collaboration with the European Union, African Development Bank, and accelerators like Flat6Labs and Seedstars has supported innovation in fintech, agritech, and healthtech. The Central Bank and National Financial Inclusion Strategy have nurtured fintech, which raised $150 million to address financial inclusion through digital wallets and payment systems.

In another move, Tunisia and China discussed strengthening their cooperation in digital transformation, focusing on telecommunications infrastructure and AI. Similarly, Tunisia and Italy are exploring cooperation to advance digital transformation, focusing on innovation, entrepreneurship, and startup development.

Furthermore, Uqudo has partnered with Tunisia to provide secure digital identity verification for passports and national ID cards, thereby enhancing KYC and AML (Anti-Money Laundering) compliance. Uqudo uses AI, biometrics, and cognitive document analysis to extract and verify identity data.

The German Agency for International Cooperation (GIZ) established the Digital Transformation Center in Tunisia on behalf of the German Federal Ministry for Economic Cooperation and Development. The center has worked closely with the Tunisian government to implement the national digital strategy and advance Tunisia's digital transformation sectorally.

Source: Ghulam Shabir Arain, Biometric Update