Numerous European businesses are manufacturing in Tunisia, which contributes to the diversification of industrial production. The mechanical and electronics industries are strongly represented, especially cable harnesses. Food processing and the textile sector also play important roles.
In addition to the proximity to Europe, the high level of education, particularly in the STEM sector, and the good infrastructure compared to the rest of the region are among the advantages. Increased nearshoring of IT services and industrial production has recently brought Tunisia even more into the focus of European companies.
However, investors are confronted with an inefficient and sometimes intransparent administration. This is compounded by powerful state-owned companies and rigid regulation in a number of sectors. In addition, the concentration of political power in the hands of the president and dependence on energy imports are causing uncertainty.
However, after years of stagnation, progress is being made in the solar energy sector. In addition, financing for the submarine power cable to Italy has been finalised, which could turn Tunisia into an electricity exporter. Green hydrogen projects have also been initiated.
Economy. According to the IMF, Tunisias economy grew by only 0.4 percent in 2023. For the current and the next year, economists predict growths rates of 1.9 and 1.8 percent. The gross domestic product per capita rose from the equivalent of 2693 to 3895 Dollars sind 2003. However, it was already at a higher level between 2008 and 2015 (peak value 4399 in 2014). Inflation recently stood at 7.4 per cent. National debt has reached around 79 per cent of GDP.
Population. Tunisia has 45.6 million inhabitants. Annual population growth has declined from 1.3 to 0.8 percent in the last ten years. Since 2003, the fertilty rate has risen slightly from 2.0 to 2.1 children per woman. Life expectancy was at 74 years recently. 100 percent of the population has access to electricity (twenty years ago, it was already 98 percent).
Governance. On Transparency International’s latest Corruption Perceptions Index, Tunisia ranks 87th out of 180. Since 2021, the country lost some ground here: the score fell from 44 to 40 points, putting Tunisia on a par with Columbia, Cote d’Ivoire and Tanzania. However, this still puts the country ahead of countries such as India and Brazil.
Sources and further information:
World Bank: https://data.worldbank.org/country/tunisia
Africa Business Guide https://www.africa-business-guide.de/de/maerkte/tunesien
Germany Trade & Invest: https://www.gtai.de/resource/blob/14864/861a9a18800ca238997de2369bf19c50/GTAI-Wirtschaftsdaten_Mai_2024_Tunesien.pdf
Transparency International: https://www.transparency.org/en/cpi/2023/index/nga