Abdelbasset Ghanmi | General Manager | FIPA-Tunisia
Tunisia – Japan Business Forum
29th August, 2019

Invest in TUNISIA, The Next Opportunity
1 Tunisia & Japan :Developed Cooperation
2

5

Major Factors of Competitiveness3

How open is Tunisia to Business?

4

Investment Opportunities
How to proceed?

1
Tunisia & Japan : Developed Cooperation

Tunisia & TUNISIA’s
Japan : DevelopedCooperation
Major Assets

A pool of talents
Sectoral distribution of Japanese companies located in Tunisia

Services Tourism

Industry

SectorElectrical & Electronic Industries
Mechanical, metallic & metallurgicalIndustries
Agrifood Industry
Textile and apparel

22

Investissement
Value(Million of dinars)
85,734
176,0791
140,517
1,927

135
61

Accommodation

138,480

190

IT Services
Studies and advice
Other services

2
3
1

1,489
0,891
0,046

120
27
4

13

345,163

5227

Total FDI excluding energy

Compagnies
Number

Employment
Generated

3966
724

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RegionalTUNISIA’s
distribution Major
of Japanese
Investment
inTunisia
AssetsBizerte1 compagnie

Tunis
6 compagnies

Kairouan
2 compagnies

Sousse2 compagnies

Gafsa
1 compagnie

Medenine
1 compagnie

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2Major Factors of Tunisia CompetitivenessWhy Tunisia?
• Well located - to serve EU, Africa and Maghreb markets• Huge amount of qualified & Skilled HR - at very competitive costs• Friendly Business Environment• Good infrastructure, port facilities and communication network• Long standing tradition with extensive know-how in textile & clothing, automotive
components niches and agriculture and agri-food• Other emerging and strongly growing sectors incl. Aerospace, ICT & Renewable Energies• FTA in goods with the EU since 2008 + FTAs with neighbours countries (Algeria, Libya…),
regional AGADIR FTA (Morocco, Egypt and Jordan) + 20th member of COMESA since 2018
+ several preferential agreements.

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Proximity & Free Access to Major Markets
Tunisia, A Regional Hub
EU FTAAGADIR
AGREEMENTFTA Turkey

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Reliable Logistics
 Established logistics routes (Marseille, Genoa,Barcelona & Valencia)

 Simplified customs clearance procedures

London Wednesday or Thursday

LondonArrival Paris Tuesday

Paris

Sailings to Marseille 3 times a week

Marseille Flights similar price for highvalue/small size consignments
e.g. electronic components,PCBs, etc...

 Containers or grouped consignments
 Saturday despatch popularTunis

Tunisia on Mediterranean rim

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Shipping Time to Mainland Europe 4/5 days

Reliable Infrastructure+2 000 weekly flights
serving +50 cities

615 Cyber Parks

RAIL NETWORK
serving the country’s
main cities

Incl. an aerospace
dedicated park
+ 2 FEZs

dedicated to com. Tech.

9 International 1
Airports

Monthly frequency

62 regular lines

5TunisianOver 150 Industrialinfrastructure
Areasincludes7 Commercial
Ports &1 Oil Terminal

2extensive 20K.
4 An
10 Sector SpecificKm paved roads
tech-parks

networkRadès - La Goulette Bridge (74 M €)opened in 2009, financed by JBIC

3spread over several
regions

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A Modern Infrastructure

TUNISIA’s Major Assets

HumanResources&
LabourLegislation
A pool of talents
A performing education system
Pool of graduates with high level
Labour Legislation
99 % of young Tunisians
are at school+200 higher education
Institutions
More than 1,000
vocational training
centers
ConfirmedhighMultilingualism

Over 65,000 new graduates
each year
35% of graduates
specialized in engineering,
computer science,
communications & othertechnical fields
54% of new job-seekers areeither university graduatesor have a vocational training
leveloTo opt for fixed-term work
up to 4 years.
oTo adapt the working
hours & systems to the needsof the company.
oTo partially determine
wage on a productivity basis.

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COMPETITIVE COSTS : A European Know-how at Competitive Labour Costs

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A New Legal Framework
The new investment law/ April 1st, 2017 - offers the following advantages:
Total freedom of foreign participation in
the capital of offshore companies

Freedom to transfer funds (profits,dividends and assets) abroad

Reduction in the number ofauthorisations and revision ofspecifications/guidelines

Free access to land ownership for theimplementation of investment projects

Guarantees to the investor inaccordance with international standards
on fair and equitable treatment andindustrial, and intellectual property

Possibility to recruit 30% of foreign
executives during the first 3 years upon
simple declaration and 10% ofexecutives guaranteed thereafter

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New Transversal law
to bring Tunisia’s business regulations in line with international standards andaims to eliminate all legal obstacles in order to mobilize investment andfacilitate administrative procedures

The newly ratified
legislation seeks

to simplify business creation, ease access to finance, facilitate the creation ofpublic-private partnerships (PPPs) and strengthen the governance of companies
to include changes to company management regulations: shareholders controlling
50% of capital now have the right to convene general meetings; the publication ofdividend distribution is mandatory; and the roles of CEO and board chair must be
separated for all publicly listed companies

to improve the state’s online administrative capacity and increase digitalisationof procedures

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Fiscal & Financial Incentives

12
3

4

- 10% Corporate tax for totally exporting companies- Total exemption up to 10 years for projects in RDZ- Total exemption from import duties & taxes forequipment, raw materials & semi-finished products
Investment grants for :- Priority sectors and value chains- Projects in RDZ up to 30% of the Investment cost(ceiling 3 MTND)- Allowance for intangible investment and R&D
expenditure up to 50% of costs- Total assumption by the State of the employer’s
share of contributions up to 10yrs for projects in RDZ- Training grant: up to 70% of the training cost

Supporting Agencies
to serve Investors

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3How open is Tunisia to Business?

Gobal CompetitivenessEntrepreneurship

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17

Favorable destination for FDI
Growing FDI flows

FDI Stock in 2018

+ 3 480 Companies

Investment Amount in MTND

2742
1814

1806

19671901

2132

FDI Breakdown by sector(excluding energy)

Services;
36.5%

Agriculture;
1,5%Tourisme;
9%25 400 MTND
+ 386 000 Jobs
About 75% of foreign companies
are wholly exporting(1) Source: FIPA–Tunisia 2019
Data excluding Energy

2013 2014 2015 2016 2017 2018
FDI Flows in 2018 recorded an increaseof 28,6% comparing with 2017
A constant increase of FDI thanks to extension
projects (about 85% of annual flows on average)
reflecting a growing confidence in Tunisia as aprofitable business location.

Industry;53%

Evolution of the FDI structure in themanufacturing sector in favor of MEEindustries and auto components inparticular

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MAJOR COMPANIES OPERATING IN TUNISIA

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19

4Promising Sectors for Investment and Businessin Tunisia

Investment Opportunities

Electronics

Automotive components

Textiles & Clothing

Renewable Energies

Aerospace Industries

ICTFood processing industries

Financial Services

BPO – ITO – R&D

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MEE Industries, an interesting value chain
7th supplier of EU for

3rd producer of automotive

1st exporting sector

electrical machinerycomponents in Africa
1606 companies with foreign participation+1 000 companies

440 totally exporting companies

13%
Annualgrowth

A Tunisian Know How
Competitive production costs

Manufacturing of different automotiveand aeronautical components
Presence of major OEM

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A reference site for auto. components
+260

65%

+80 000

 Presence of major OEMs

Companies
Totally
exportingTOP 5 Automotive Industry producer
Rank Country
12Germany

FranceCompanies Employees
2925+ 29 900+ 16 600

3Japan4+ 6 100

4USA

5+ 2 700

5Italy5+ 1 300Assets

 Proximity and short leadtimes
 Experienced main power with a strong
adaptability to new technologies

Jobs Competitive labour and factor costs :12%
AnnualGrowth40%

US$5 300 (skilled worker) US$10 600 (engineer)

3rd Strong reputation especially in Europe Availability of Technical Centres

Integration
RateProducer
in Africa Association of Equipment Manufacturers"TAA“Tunisia is one of Europe's top 10 suppliers of electrical wiring systems

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A Priority Sector in Expansion
Digital+1 800
ICTCompanies+300+34 000

Main assets
 Many Leading International Corporations areForeign

based in Tunisia
Jobs

 Geographical and Cultural Proximité Same Time zone as Central Europe (GMT + 1)

219
SharedServicesCentres

14%
Annualgrowth Qualified and experienced Human

7%

Resources, bilingual (FR & EN) / C.S.A.
US$ 7 000 – Software Programmer US$11 000

Contribution
In GDP IT infrastructure at global standards
 Annual rent per sq2 of a class A office inTunisia circa US$ 80

 200 university courses that fall under ICT
disciplines
50,000 students in higher educationand technology in the ICT

Invest in Tunisia, The NextAgribusiness sector in Tunisia+1 088Companies

Strenghts of the sector
 Synergy between ResearchCentres and companies Booming organic production
 High quality, favour and naturaltaste
 Competitive labour costs andimportant incentives+120+75 000

Foreign/or +foreignparticipation

Jobs

2nd

World
exporter ofDattes

2ndAfrican
exporter oforganic
products

2ndWorld
exporter ofOlive Oil

Tunisia has a world leadership position in the organic
dates and olive oil segments
1stCountry withrecognition of theBIO EU
equivalence+31%
Growth of BIO
volumes exported

95%
Potential forconverting hectares ofolive groves intoorganic farming80%
Share of Tunisian
BIO production forexport

85
Tunisian BIO client
countries spreadover 5 continents

370K haOrganic surfaces inTunisia(2016-2017 )Source(s) : Executive management of Agriculture Biology, , www.agencebio.org

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Energy and Renewable energy : An Evolving Sector
A National Development Strategy of Renewable Energy
since

2015
Goals

Tunisiaboasts annual irradiation rates ofapproximately 1800 to 2600 KWhper square metre, over 20% more

Currently third tender
The development and construction of several solar
power plants exceeding 10 MW
12% renewable energy produced in

2020

30% renewable energy produced in

2030

than the most irradiated sites inEurope

Total investment of 4 B€ by 2030

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5How to proceed?

How to proceed?

Project Declaration

Simple Procedures
100% foreign
capital

One-Stop-Shop certified ISOPartnership

24/48hLegal incorporation
Registration ofcompany statutes
Tax ID card
Registration in
the Trade Register
Etc.

Invest in Tunisia, The Next Investment is FREE

 FREE transfer of profits and capital Simple incorporation procedures Tax & free access to the EU market
 Competitive production costs
 Competitive and highly skilled LF :
 Engineer: US$ 600
 Skilled worker US$ 250-300
 Minimum wage: US$ 135/month Factory lease: US$ 8 to 40 /sq2/yr

Strategically located. Small
country with huge Potential
A market-oriented economy
Friendly Business Location.

An educated & modern
society open to the world

 Fiscal & financial incentives

Invest in Tunisia, The NextFIPA-TUNISIA: Mission ?
Information• On investment opportunities in Tunisia and the main reasons why Tunisia is such an
attractive site for FDIs.

Contact• Our approach is to present the most satisfactory Tunisian offer for companies seeking
internationalization

Advice• on the appropriate conditions for the success of projects, regions of operation,
investment plans, financing methods…

Assistance• to investors on exploratory visits to Tunisia and in the various phases of project
implementation.

Support• to improve the sustainability of the company through personalized monitoring

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Contact us
Abdelbasset Ghanmi
General ManagerFIPA-Tunisia+216 70 24 15 11

abdelbasset.ghanmi@fipa.tn
Centre Urbain Nord. Rue Slaheddine
Ammami, 1004 Tunis-Tunisia