Industry & Retail
From The Report: Tunisia 2019
View in Online Reader

Traditionally dominated by textiles, the industrial sector is increasingly attracting investment in higher-value segments such as pharmaceuticals, electronics, automotive and aeronautics as a result of a skilled and competitively salaried workforce. Despite the sector’s strengths, however, progress stagnated following the 2011 revolution. In view of revitalising the broader economy, the 2019-20 economic recovery plan, seeks to boost the competitiveness of the country’s key industries. Tunisia’s retail market remains, however, underdeveloped relative to North African peers, in particular to Morocco and Egypt. This results in a number of significant opportunities that are available for both domestic and international operators, particularly in areas such as e-commerce, among others. Nonetheless, distribution networks continue to improve and expand, while the presence of global brands and franchises is on the rise. This chapter contains interviews with Hichem Elloumi, CEO, COFICAB; and Vice-President, Tunisian Union of Industry, Trade and Handicrafts; and Hosni Boufaden, President, Tunisian Federation of Textiles and Clothing.

Articles from this Chapter

Overview

Market tested: Key subsectors benefit from new stimulus measures aimed at boosting competitiveness
OBG
plus

Since gaining independence in the 1950s, Tunisia has focused on developing and expanding its industrial base. Traditionally dominated by textiles, the industrial sector is increasingly attracting investment in higher-value segments such as pharmaceuticals, electronics, automotive and aeronautics as a result of a highly skilled and educated workforce. Despite the sector’s strengths, however, progress stagnated following the 2011 revolution, the aftermath of which propelled industry, along with…

Interview

Future ready: Hichem Elloumi, CEO, COFICAB; and Vice-President, Tunisian Union of Industry, Trade and Handicrafts, on boosting competitiveness on a local and global scale
OBG
plus

Interview:Hichem Elloumi How can the government and private companies support the development of Industry 4.0? HICHEM ELLOUMI: In a constantly evolving world, the only companies to successfully achieve sustainable growth will be those that pursue continuous technological improvement, as well as those that evolve their processes and products to meet market demand. To this end, the Tunisian government has announced the launching of a programme to aid companies in their transition toward Industry…

Analysis

Trend patterns: Growth opportunities exist for textiles in diversified source markets, sustainable fashion and innovative fabrics
OBG
plus

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 exports, the government has turned to textiles as a potential catalyst to boost rural employment…

Interview

Productive partnerships: Hosni Boufaden, President, Tunisian Federation of Textiles and Clothing, on fostering collaboration to boost competitiveness and support greater trade with the EU
OBG
plus

Interview:Hosni Boufaden In what ways will the textile growth and competitiveness pact support the sector’s recovery? HOSNI BOUFADEN: The agreement is the culmination of a process that began in May 2017. Back then the sector was going through a recession that cost the economy nearly 400,000 jobs and saw the country fall from being the 12th to the eighth-largest textile exporter worldwide. Therefore, the decision was taken to develop a medium-term strategy for the recovery of the sector.…

Analysis

Confidence building: Technological collaboration is key to a robust electronics industry
OBG
plus

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, notably in the aeronautics and automobile industries. Fortunately, electronics has been relatively…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution – Tunisia
OBG
plus

The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are bringing emerging markets improved productivity, as well as risks – namely, reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as those in the Gulf, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…

Analysis

Retail therapy: Development of online payment systems and growing support for franchisees facilitates sector expansion
OBG
plus

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 to Morocco and Egypt. This results in a number of significant opportunities that are available…