Analysis

Microfinance institutions help expand lending opportunities and access to credit in Tunisia
OBG
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While the structure of Tunisia’s banking sector prevents it from adequately financing the economy at large, recent developments in the microfinance segment are helping to attract customers. The impact of these new players is especially being felt among the small business community. Despite the fact that multiple microfinance associations were active beforehand, it was only after Tunisia’s 2011…

Analysis

Tunisia's alternative market holds potential to boost financing for small and medium-sized enterprises
OBG
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In December 2007 the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) launched an alternative market with considerably softer entry requirements than those on the principal market. The project was set up to provide small and medium-sized enterprises (SMEs) with a means to raise the funds necessary for their development. After a decade of existence the market has made certain advances,…

Analysis

New regulatory incentives and valuation techniques boost institutional investment in the Tunisia Stock Exchange
OBG
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Activity on the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) has traditionally been characterised by demand from relatively small investors, as well as a limited amount of international investment. Meanwhile, the contribution of institutional investors has been marginal, negatively affecting the development of the country’s capital markets. However, a move towards mark-to-market…

Analysis

Tunisia's electronics industry uses collaboration and technical consolidation to boost manufacturing power
OBG
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Given its proximity to Europe, Tunisia is at the heart of the Euro-Mediterranean logistics chain, a position it has leveraged to create a thriving electronics industry. Benefitting from a highly qualified, skilled and cost-competitive workforce, Tunisia has succeeded in attracting a large number of electronics companies to its shores, becoming an internationally recognised electronics production hub,…

Analysis

Tunisia's e-commerce and retail sector set to expand with technological developments and growing support for franchisees
OBG
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Low consumer confidence coupled with inflation and compromised purchasing power on the back of a weak dinar have characterised Tunisia’s retail sector in recent years. Nonetheless, distribution networks continue to improve and expand, while the presence of global brands and franchises is on the rise. Tunisia’s retail market remains, however, underdeveloped relative to North African peers, in particular…

Analysis

Tunisia's government turns to the textiles sector to boost rural employment and drive economic change
OBG
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Textiles were once the crown jewel of Tunisia’s industrial environment, representing 50% of employment and earnings. However, increased competition from abroad and domestic instability following the 2011 revolution saw 400 companies close down and 40,000 jobs lost since 2007. Given the industry’s record of job creation outside the capital and the potential to earn foreign currency through increased…

Analysis

New compulsory natural catastrophe insurance to protect Tunisia's businesses from losses
OBG
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Although Tunisia does not have the same exposure to large-scale earthquakes as Algeria and Morocco, it regularly faces the consequences of significant flooding to both rural and urban areas. These events regularly cause extensive damage. According to figures from Tunisia’s Ministry of Local Affairs and Environment, natural disasters have an annual economic impact of roughly $138m, with floods accounting…

Analysis

Tunisia's government works to develop the start-up ecosystem using new policies and incentives
OBG
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The rise of Tunisia’s ICT sector forms part of the government’s drive to make science and technology the focus of its economic transformation, diversifying from traditional sectors such as tourism, manufacturing and agriculture. While government policies are organised under the sector’s national plan, Digital Tunisia 2020, the private sector is working to develop its ICT capabilities through…

Analysis

Artisans in Tunisia thrive as the government focuses on rehabilitating tourism segment
OBG
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Tunisia has a long and illustrious history of craftsmanship, boasting some 76 craft specialities, including pottery, weaving, tapestry, embroidery, basketry and jewellery-making. The industry, which sells its goods primarily to tourists in the country’s traditional souqs (shops or boutiques), was significantly impacted by the slump in tourist numbers following 2015’s terrorist incidents (see overview).…

Analysis

Collaboration with international development agencies supports Tunisia's agriculture development and entrepreneurship
OBG
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Agriculture is set to play a key role in achieving the government’s objective of increasing employment for young people, particularly in rural areas. In 2018 around 47% of the Tunisian population was under 30 years old and the youth unemployment rate stood at 34.8%, according to the World Bank. However, a number of programmes have been created to encourage innovation and investment, while also overcoming…