Country Report

The Report: Tunisia 2016
OBG
plus

With Tunisia’s young population and well-maintained infrastructure, there is the opportunity for strong economic development. The establishment of democratic rule in the country should also be a major boon in terms of creating a positive business environment characterized by the strong rule of law. Tunisia has a deserved reputation for stability and moderation, and while the political dialogue w

Analysis

Tunisia's foreign policy based on regional cooperation and strengthening ties
OBG
plus

While Tunisia consolidates the progress it has made domestically over the last five years, the situation in its immediate neighbourhood remains difficult and volatile. The government has sought to play a central diplomatic role in helping to resolve the intractable issues plaguing Libya and, further afield, Syria, without inflaming tensions. Indeed, as a founding member of the non-aligned movement,…

Analysis

Renewed efforts to reduce red tape and restrictions on investment in Tunisia
OBG
plus

As part of efforts to develop the economy, the Tunisian authorities are keen to boost levels of investment, which stand at around 18.5% of GDP, well below the 30% witnessed in neighbouring Morocco. The country’s 2016-20 development plan requires total investment of TD125bn (€57.3bn) to be made in the coming five years. In order to facilitate this, the government is in the process of creating a…

Analysis

Tunisia's fiscal policy emphasises reduction of public wage bill, subsidy cuts and tax reforms
OBG
plus

Balancing a budget is made all the more challenging in times of low growth. However, Tunisia has had some remarkable success in addressing its fiscal shortfalls, and while debt has been inching upwards, it is still manageable. The government has more work to do to bring the budget closer to a surplus and will look to slow the rise in debt, but the country has certainly proved itself adept at balancing…

Analysis

Banking in Tunisia focusing on improving financial inclusion
OBG
plus

Although Tunisia is home to a large number of locally and foreign-backed banks from the public and private spheres, access to financial services remains difficult for many. The World Bank describes inclusive financial services in the country as “fragmented, incomplete and difficult to access”, and the proportion of Tunisians formally involved in the financial system is low in comparison to neighbouring…