Capital Markets
From The Report: Tunisia 2018
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While Tunisia has faced weak economic growth and high inflation in recent years, the country’s stock market continued to grow over the 2016-17 period, even though its contribution to private investment financing remains relatively modest compared to that of the banking sector. Measures to deepen the market, however, are under way, aiming to attract an increased number of small and medium-sized enterprises to the bourse, while improving its security and transparency standards to entice further institutional and foreign investors to join the currently retail investor-dominated exchange. With economic growth expected to continue to pick up, market observers are cautiously optimistic regarding the development of the country’s capital markets. This chapter contains interviews with Bilel Sahnoun, CEO, Tunis Stock Exchange; and Walid Saibi, General Manager, Tunisie Valeurs.

Articles from this Chapter

Overview

Expanding the field: Regulators look to deepen capital market offerings
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While Tunisia has faced weak economic growth and high inflation in recent years, the country’s stock market continued to grow over the 2016-17 period, even though its contribution to private investment financing remains relatively modest compared to that of the banking sector. Measures to deepen the market, however, are under way, aiming to attract an increased number of small and medium-sized enterprises (SMEs) to the bourse, while also improving its security and transparency standards…

Interview

Upside potential: Bilel Sahnoun, CEO, Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT), on encouraging companies to list
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Interiew:Bilel Sahnoun What incentives are necessary to increase the number of listed companies on the BVMT? BILEL SAHNOUN: There are two main fiscal incentives in place for companies to enter the stock exchange. First, companies floating more than 30% of their equity capital pay tax at a rate of 15% instead of 25% for the five years following their initial public offering (IPO). Second, gains resulting from capital injections of equities in a mother company or a holding are exempted from…

Analysis

Thinking small: Targeted funding programme hopes to attract small and medium-sized enterprises (SMEs) to the alternative market
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Despite their significant presence in the Tunisian economy, SMEs continue to face difficulties in financing their development. Aware of these challenges, the authorities are looking to provide SMEs with alternative sources of financing outside of the banking sector, which has been limited in its ability to finance such enterprises. To this end, the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) is currently developing a new programme with international partners that…

Interview

Taking stock: Walid Saibi, General Manager, Tunisie Valeurs, on necessary reforms to help the country transition into a financial centre
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Interview:Walid Saibi How could changes to the country’s capital markets help Tunisia become a financial centre? WALID SAIBI: In its day-to-day functioning, Tunisian capital markets are comparable to those of any emerging country. Overall, the stock exchange responds well and functions adequately. However, in order for Tunisia to become a financial centre, the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) must first strengthen its position within the national economy.…

Analysis

A key to success: Investors and markets continue to wait for structural reforms to get under way
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In the 20 years since the Tunisian market opened to foreign investors in 1997, the bourse has seen limited interventions. At the end of September 2017 around 24% of market capitalisation was held by international investors; however, if those figures are adjusted with the strategic participation of the Castel Group in brewery Société de Fabrication des Boissons de Tunisie (SFBT), or French group CIC in Banque de Tunisie, BNP Paribas in UBCI and many others, we estimate the share in the hands…

Analysis

Looking up: Strong responses to public offerings demonstrate the potential for growth in the local market
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The Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) is the local stock market, and although it was originally established in 1969 as a public entity, it has been a private entity since 1994, jointly and equally owned by 23 brokerage firms. The BVMT’s primary tracking tool is the Tunindex. Launched at the end of 1997, it is a capitalisation-weighted index with the weight of any company capped at 15%. The main index is open for all listed stocks and currently tracks…