TUNISIA

Investment OpportunitiesG20 Compact with Africa

G20 COMPACT WITHAFRICA

Business Friendly Investment Climate—as a result of post Arab Spring reforms implemented in areas such as banking, competition, bankruptcy, ICT liberalization, PPPs.

Highly Educated Workforce—student population is 325,000 per year including 60% women, more than 700,000 graduates per year, 33% trained in ICT

High Quality and Improving Telecoms Infrastructure—Tunisia is the “leading country in the Southern Mediterranean region in terms of telecom infrastructure.” It has 18 cyber parks and 10 techno parks

Robust Legal Framework for Investments—Tunisia is becoming part of the EU Convention 108 and has passed a new investment law

Connectivity—mobile cellular subscription of 130 per 100 people

Economic Growth— GDP per capita is one of the highest in Africa; estimated GDP growth of 2.5% in 2017; estimated average GDP growth of 3.7% from 2017–2020

Strategically located in the Southern Mediterranean

Other widely used languages—English and Italian

Tabarka

Thala

Maharès

Houmt Souk

Zarzis

El Hamma

El Borma

Remada

Dehibat

Skhira

El Djem

Sfax

Beja

Gabes

Gafsa

Kebili

Tozeur

Mahdia

Sousse

Le Kef

Nabeul

Monastir

Siliana

Bizerte

Medenine

Kairouan

Zaghouan

Jendouba

Tataouine

Kasserine SidiBou Zid

L'Ariana

Ben ArousTUNIS

A L G E R I A

L I B Y A

Sicily(ITALY)

JENDOUBABEJA

BIZERTEARIANA

BEN AROUS

ZAGHOUANSIL IANA

LE KEF

KAIROUAN

SOUSSE

NABEUL

MONASTIR

SIDI BOUZID

S F A X

M A H D I AKASSERINE

G A F S A

T O Z E U RG A B E S

MEDENINE

T A T A O U I N E

K E B I L I

Tabarka

Thala

Maharès

Houmt Souk

Zarzis

El Hamma

El Borma

Remada

Dehibat

Skhira

El Djem

Sfax

Beja

Gabes

Gafsa

Kebili

Tozeur

Mahdia

Sousse

Le Kef

Nabeul

Monastir

Siliana

Bizerte

Medenine

Kairouan

Zaghouan

Jendouba

Tataouine

Kasserine SidiBou Zid

L'Ariana

Ben ArousTUNIS

A L G E R I A

L I B Y A

Sicily(ITALY)

JENDOUBABEJA

BIZERTEARIANA

BEN AROUS

ZAGHOUANSIL IANA

LE KEF

KAIROUAN

SOUSSE

NABEUL

MONASTIR

SIDI BOUZID

S F A X

M A H D I AKASSERINE

G A F S A

T O Z E U RG A B E S

MEDENINE

T A T A O U I N E

K E B I L I

DjerbaIsland

KerkennaIslands

La Galite

Pantelleria(It.)

Isole Pelagie(It.)

Lampedusa(It.)

Melleg

ue

ZeroudEl Hateb

Gulf ofTunis

Gulf of Hammamet

Chott el Jerid

MediterraneanSea

Mediterranean Sea

Gulf ofGabes

Strait of Sicily

To Algiers

To Sétif

To Sétif

To Touggourt

To Tripoli

To Mizdah

To Dirj

8°E

8°E

38°N

36°N 36°N

34°N34°N

32°N

30°N

10° 1E 2°E

10°E

TUNISIA

0

0 25 50 75 Miles

25 50 75 100 Kilometers

TUNISIAMAIN CITIES AND TOWNS

GOVERNORATE CAPITALS

NATIONAL CAPITAL

MAIN ROADS

RAILROADS

GOVERNORATE BOUNDARIES

INTERNATIONAL BOUNDARIES

KEY FACTS

Languages Arabic (official, commercial) French (commercial)

Currency Tunisian Dinar

Government Parliamentary Republic

Land area 163,600 sq. km

Coastline 1,148 km

Major urban areas Tunis

Population 11.11 million

Literacy rate 81.8%

GDP (current, 2015) $43.02 billion

GDP Growth (2016 est)

1.5%

GDP per capita (Atlas, 2016)

$3,734

Natural resources petroleum, phosphates, iron ore, lead, zinc, salt

COUNTRY CONTEXT

T U N I S I A | Compact with Africa

COMPACT MEASURES

MACROECONOMIC FRAMEWORK – Multi-year fiscal adjustment while growing investment and social spending

– Increasing international reserves through macroeconomic stabilization package

BUSINESS FRAMEWORK – New investment code, PPP law, competition law

– High anti-corruption authority

– One-stop shop for large investment projects

FINANCING FRAMEWORK – Restructuring of the banking sector

– Efforts to clean up non-performing loans and increase lending capacity

OPPORTUNITY

AEROSPACE INDUSTRYStrengths – High Value-Added Activities (Engineering software/hardware; Turn

machines and high-precision machining; Production of aeronautical systems

– Integrated industrial platform dedicated exclusively to aeronautics

– An area of over 200 hectares, of which 20 hectares are dedicated to the Stelia aeronautical park, subsidiary of EADS / AIRBUS

OPPORTUNITY

AUTOMOTIVE SECTORStrengths – Presence of major equipment manufacturers

– Geographic proximity and fast delivery times

– Experienced and highly adaptable workforce

– Strong reputation especially in Europe

– Availability of Technical Centers

– Consortium of equipment manufacturers within the Tunisian Automotive Association

– 267 companies, 80,000 jobs, 134 with foreign participation

– Tunisia is among the 10 first providers in Europe of electrical wiring systems

T U N I S I A | Compact with Africa

OPPORTUNITY

ICTStrengths – A growing & strong Ecosystem

– Competitive & talented Human Resources

– High quality & available Infrastructure

– Strong Legal & Incentives Framework

– Strategic location between Europe and Africa

– 12,000 ICT graduates per year

OPPORTUNITY

AGRIBUSINESSStrengths – Synergy between research centers and companies

– Booming ORGANIC production

– Quality products, flavor and natural taste

– Fiscal incentives in favor of the sector

– Africa’s 2nd Largest Exporter of Organic Products

– World’s Largest Exporter of Dates

– One of the World’s Largest Exporters of Olive Oil

OPPORTUNITY

INFRASTRUCTURE – Good quality of infrastructure needs to be further developed,

particularly in lagging regions

– PPP law can facilitate public private investment

Strengths – Deep water harbor Enfidha (600 M Eur)

– Construction of express roads linking the governorates of Kasserine, Gafsa and Sidi Bouzid to Sfax, Gabes and the A1 motorway (480 M EUR)

– Improving interior roads (280 M EUR) in the governorates of Ariana, Béja, Ben Arous, Bizerte, Gabès, Gafsa, Jendouba, Kairouan, Kasserine, Kébili, Le Kef, Mahdia, Manouba, Médenine, Monastir, Nabeul, Sfax, Sidi Bouzid, Siliana, Sousse, Tataouine, Tozeur, Tunis, Zaghouan

– Construction of 35 new bridges in 23 governorates (80 M EUR)

– Other potential PPP projects: Logistics zone for Rades Port, wastewater treatment plant BOT in Gabes, railway line between Medenine and Gabes

9 International Airports

7 Commercial Seaports and One Oil

Terminal

Developed Network of Roads and

Highways

12 Competitivity Clusters

About 100 Industrial Zonesand 2 Parks for Economic Activities

15 Cyberparks for Different Specialities

T U N I S I A | Compact with Africa

PARTNER SUPPORT FOR THE REFORMSMacroeconomic Framework – Ensuring Macroeconomic Stability and Debt Sustainability While Mobilizing External Resources for

Public Investment (IMF, AfDB, WB)

– Increasing Domestic Resource Mobilization in the Context of an Investment-Friendly Tax System (IMF, AfDB, WB)

– Ensuring Sound Public Investment Management (AfDB, WB)

– Better Performance of Public Utilities (WB, AfDB)

Business Framework – Reliable Regulations and Institutions (AfDB, IFC)

– Improved Project Preparation (AfDB, WB)

– Standardization of Contracts (AfDB)

Financing Framework – Efficient risk mitigation instrument (WB)

– Domestic Debt Market Development (AfDB, WB, IMF)

CONTACT INFORMATION

Ministry of Development, Investment and International Cooperation www.mdci.gov.tn Ministry of Finance www.finances.gov.tn Foreign Investment and Promotion Agency www.investintunisia.tn

Focal point: Asma Khouja asma.khouja@tunisia.gov.tn Eymen Errais eymen.errais@tunisia.gov.tn