With the government enacting far-reaching reforms in early 2018 to help quicken the restoration of macroeconomic equilibrium, it is hoped that any short-term negative impact of the changes will be mitigated by the recovery of key industries, including tourism and phosphates. Growth for 2018 is projected to rise to 3%, according to the IMF, or 2.8% by government estimates, up from an estimated 2.3% in 2017.
6 11 13 14 15 18 19 23 29 30 31 32 33 Tunisia in brief Liberal horizons: Recent political achievements build on a rich and diverse past Viewpoint: President Beji Caid Essebsi Interview: Akinwumi Adesina, President, African Development Bank Post-revolution transition: Securing political stability is central to economic development Outwardly engaged: Moves are in progress to establish the country as a key political and economic player in Africa Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future Renewed potential: Reforms are under way to tackle structural issues Currency concerns: A range of initiatives aim to support the dinar and boost foreign reserves A recipe for success: Adjustments foster a more welcoming business environment Interview: Youssef Chahed, Head of Government Interview: Samir Majoul, President, Tunisian Union of Industry, Trade and Handicrafts Tax liabilities: Impacts of the trend towards lower corporate tax rates on developed and developing economies 37 43 44 47 48 54 56 61 62 63 65 66 70 74 75 77 82 Taking care: Reforms resulting from the 2016 Banking Law will grow niche segments and align the sector with international norms Interview: Chedli Ayari, Former Governor, Central Bank of Tunisia Proceeding with caution: As retail lending expands, banks aim to limit their exposure to credit risk On the cards: Electronic payments and digitalisation are key measures to grow the banked population Fintech revolution: Tech solutions are driving the evolution of the sector landscape Interview: Habib Ben Hadj Kouider, DirectorGeneral, Banque Nationale Agricole Expanding the field: Regulators look to deepen capital market offerings Interview: Bilel Sahnoun, CEO, Tunis Stock Exchange Thinking small: Targeted funding programme hopes to attract small and medium-sized enterprises to the alternative market Interview: Walid Saibi, General Manager, Tunisie Valeurs Market analysis provided by Tunisie Valeurs A key to success: Investors and markets continue to wait for structural reforms to get under way Looking up: Strong responses to public offerings demonstrate the potential for growth in the local market Regulating risk: Sector-wide reforms aim to boost premiums and profitability Diversification premium: Efforts under way to enhance non-conventional product lines Interview: Hassène Feki, CEO, STAR Assurances Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets Interview: Lamia Ben Mahmoud, CEO and Chairman, Tunis Re Page 92 Although modest when compared to the region, Tunisia’s oil and gas reserves have nonetheless provided an important contribution to economic growth and development. Efforts continue to encourage further hydrocarbons exploration work, alongside the authorities’ drive to diversify generation through renewable energy sources and educate the population on efficient energy use.
84 88 90 92 97 98 99 100 104 107 Revamping the system: Transport infrastructure spending is set to fuel economic growth Along the coast: Investment in port infrastructure aims to boost regional competitiveness Taking off: Internal stability coupled with new routes drives up air traffic Fuelling the future: Hydrocarbons exploration and renewable energy projects aim to address domestic needs Interview: Nabil Smida, Chairman and CEO, Société Nationale de Distribution des Pétroles AGIL Interview: Moncef Harrabi, Chairman, Société Tunisienne de l’Electricité et du Gaz Soaking up the sun: A large-scale solar energy project will export electricity to European neighbours Digging deeper: Greater stability is required in order to rejuvenate the local phosphate industry Structural change: Building activity is set to rebound through increased investment, and infrastructure and social development plans Buy lateral developments: Social housing programmes and private investors continue to drive the market despite regulatory obstacles 110 114 117 119 123 128 130 131 132 136 137 141 147 148 150 Sustainable urbanisation: As urban populations undergo rapid growth, planners are striving to create efficient spaces Data shift: New players enter the market, while data drives growth Connecting opportunities: The sector strengthens its offerings and capitalises on its status as an outsourcing centre A clear path: Easing delivery of state services seen as key to unlocking more robust digital growth Diversified production: Manufacturing makes progress despite a challenging domestic environment Garment growth: Textile producers forge ahead with new plans in the context of increased regional competition Sector cure: Exports and internationalisation present the best opportunities for Tunisian pharmaceutical manufacturers Interview: Slim Feriani, Minister of Industry and Small and Medium-sized Enterprises Purchasing power: Modern distribution channels, e-commerce and the arrival of global brands are becoming key retail drivers Online push: Regulators look to overcome obstacles to e-commerce payment and access Interview: Nabil Chaibi, CEO, Ulysse Hyper Distribution – Carrefour Tunisie Return to form: Improved security encourages the return of European visitors, while state activity supports regional expansion New arrivals: Activity from emerging markets coupled with a return of traditional partners breathes new life into the sector Home grown: Government incentives have helped to fuel the expansion of the domestic market Interview: Ahmed Khalaf, General Manager, Four Seasons Hotel Tunisia 152 155 156 158 162 166 167 172 176 182 184 190 192 194 199 200 Protect and grow: New measures are expected to incentivise investment and help the sector weather external challenges Interview: Chokri Bayoudh, CEO, Office Nationale de l’Huile d’Olive Organic matter: After experiencing rapid growth in recent years, organic farming is attracting government and foreign interest For the future: Reforms aim to build a stronger industry, boost medical tourism and improve the quality of care Promoting pharmaceuticals: As health care provision expands, demand for both local and imported pharmaceutical products is rising Interview: Hatem Ben Salem, Minister of Education Lesson plans: Wide-ranging reforms aim to boost educational outcomes On the job: Development and promotion of technical and vocational training key to improving employment rates KPMG Principle payments: A new budget law builds on the existing investment framework Viewpoint: Moncef Boussannouga Zammouri, Managing Partner, KPMG Meziou Knani & Khlif Law of the land: A breakdown of the protections for minority shareholders Path to market: A comprehensive review of listing on the debt and equities markets Viewpoint: Ghazi Meziou, Associate Lawyer, Meziou Knani & Khlif For your comfort: Selected hotels Listings: Helpful public and private entities Facts for visitors: Important information for business and leisure travellers Page 158 Page 152 Page 141 Page 104 Tunisia has seen strong improvement in key health outcomes thanks to the provision of health care coverage to the bulk of the citizenry, while private health care is growing rapidly. There is ample room for investment providing the country continues to gain international accreditation and improve travel connectivity with promising source markets. Agriculture in Tunisia mostly consists of olive oil, cereals, dates, fruits and vegetables. Efforts to modernise the sector in recent years have steered it towards the development of agri-business and away from small family farms. Given its significant export potential, particularly for olive oil, the government has also enacted laws to boost agriculture investment. Tourism has recovered considerably since 2015, thanks to campaigns geared towards non-traditional source markets like Algeria and China, and the significantly improved security situation. While the sector could benefit from more diversified offerings, a strong performance in 2017 and early 2018 gives the industry reason to be optimistic. Due to its role in employment and supply chains, Tunisia’s construction sector has always been a central component of the economy. The challenging macroeconomic environment since 2011 has taken a toll on public and private spending, but a return to more stable levels is expected to come through government-backed infrastructure plans for energy and transport.
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