Tunisia - Market OpportunitiesTunisia - Market Opportunities
Tunisia and the United States have a number of bilateral agreements relevant for U.S. companies, including a Convention for the Avoidance of Double Taxation (1985), a Bilateral Investment Treaty (1990), and a Trade and Investment Framework Agreement (TIFA) (2002).
Excellent opportunities exist for potential investors, especially in sectors that would benefit from American technology, such as hydrocarbons, power generation, renewable energy, aeronautics, transportation, healthcare, safety and security, and information and communications technologies. To a lesser extent, noteworthy commercial prospects may be identified in more labor-intensive, offshore (export-oriented) manufacturing industries such as textiles and apparel, agribusiness, aerospace, and mechanical and electrical equipment. In recent years, multinational companies have established call centers primarily for European markets.
Due to its moderate Mediterranean climate, beautiful beaches, and outstanding antiquities, Tunisia enjoys an extensive tourism sector. The GOT provides a set of robust incentives for investment in this area. Investment opportunities in tourism include cultural and historical tours, golf packages, desert excursions, and medical tourism. Much of Tunisia’s tourism infrastructure requires refurbishment, and niche travel remains underdeveloped in areas away from Tunisia’s coastal cities. As the tourism sector grows, opportunities may become more evident. Until direct, less expensive flight packages become more available, however, tourism from the United States may not experience significant growth.
Opportunities exist for U.S. agricultural producers as well. Some bulk commodities such as wheat are highly subject to Tunisia’s variable domestic production levels and international market conditions. Corn, soybeans, and some intermediate products such as soybean meal, vegetable oils, and distillers grains may offer more stable and consistent long-term prospects. U.S. market share of Tunisia’s overall agricultural imports currently hovers around 13%. Even though the EU and other regional producers such as Russia and Ukraine are at an advantage due to lower freight costs and a preferential trade agreement with the EU, there is still room for new players to exploit opportunities in this market. A sizable market exists in Tunisia for agricultural equipment, including tractors, harvesters, and irrigation systems. A GOT decision to outsource grain storage has spurred demand for grain silos and elevators.
U.S. high-tech medical equipment and products may be attractive in the Tunisian market. A government program to upgrade the country’s hospitals and increase the number of private clinics has created a large demand for medical equipment. Medical tourism remains small but demonstrates increasing potential to attract visitors from neighboring countries, Europe, and sub-Saharan Africa.
Liberalization of the market for franchises is viewed by the GOT as a catalyst for small and medium enterprise development and employment generation. Since 2009 Tunisia has loosened its controls over franchising. Excluding food and beverage, real estate, and advertising franchises, foreign franchises are now automatically allowed to operate and are treated like any other foreign investment in the onshore sector. Franchises in excluded sectors may operate with an additional authorization from the GOT. The Ministry of Commerce has yet to deny a food franchise application.
The GOT aims to generate 30% of its power from renewable energy by 2030. The adoption in April 2015 of a renewable energy law and the publication of its implementing decrees in February 2017 encouraged private businesses to generate and use clean energy. Since May 2018, the GOT has awarded to private companies 12 solar projects of 10 megamatts (MW) each and four wind project of 30 MW each.
In September 2018, Tunisia presented to national and international investors and financial institutions a list of 33 public-private partnership (PPP) projects in four sectors: 1) transport and logistics; 2) energy, water, and environment; 3) infrastructure and urban development; and 4) science and technology. U.S. companies are encouraged to pursue PPP projects of interest (http://www.igppp.tn/fr).
Excellent opportunities exist for potential investors, especially in sectors that would benefit from American technology, such as hydrocarbons, power generation, renewable energy, aeronautics, transportation, healthcare, safety and security, and information and communications technologies. To a lesser extent, noteworthy commercial prospects may be identified in more labor-intensive, offshore (export-oriented) manufacturing industries such as textiles and apparel, agribusiness, aerospace, and mechanical and electrical equipment. In recent years, multinational companies have established call centers primarily for European markets.
Due to its moderate Mediterranean climate, beautiful beaches, and outstanding antiquities, Tunisia enjoys an extensive tourism sector. The GOT provides a set of robust incentives for investment in this area. Investment opportunities in tourism include cultural and historical tours, golf packages, desert excursions, and medical tourism. Much of Tunisia’s tourism infrastructure requires refurbishment, and niche travel remains underdeveloped in areas away from Tunisia’s coastal cities. As the tourism sector grows, opportunities may become more evident. Until direct, less expensive flight packages become more available, however, tourism from the United States may not experience significant growth.
Opportunities exist for U.S. agricultural producers as well. Some bulk commodities such as wheat are highly subject to Tunisia’s variable domestic production levels and international market conditions. Corn, soybeans, and some intermediate products such as soybean meal, vegetable oils, and distillers grains may offer more stable and consistent long-term prospects. U.S. market share of Tunisia’s overall agricultural imports currently hovers around 13%. Even though the EU and other regional producers such as Russia and Ukraine are at an advantage due to lower freight costs and a preferential trade agreement with the EU, there is still room for new players to exploit opportunities in this market. A sizable market exists in Tunisia for agricultural equipment, including tractors, harvesters, and irrigation systems. A GOT decision to outsource grain storage has spurred demand for grain silos and elevators.
U.S. high-tech medical equipment and products may be attractive in the Tunisian market. A government program to upgrade the country’s hospitals and increase the number of private clinics has created a large demand for medical equipment. Medical tourism remains small but demonstrates increasing potential to attract visitors from neighboring countries, Europe, and sub-Saharan Africa.
Liberalization of the market for franchises is viewed by the GOT as a catalyst for small and medium enterprise development and employment generation. Since 2009 Tunisia has loosened its controls over franchising. Excluding food and beverage, real estate, and advertising franchises, foreign franchises are now automatically allowed to operate and are treated like any other foreign investment in the onshore sector. Franchises in excluded sectors may operate with an additional authorization from the GOT. The Ministry of Commerce has yet to deny a food franchise application.
The GOT aims to generate 30% of its power from renewable energy by 2030. The adoption in April 2015 of a renewable energy law and the publication of its implementing decrees in February 2017 encouraged private businesses to generate and use clean energy. Since May 2018, the GOT has awarded to private companies 12 solar projects of 10 megamatts (MW) each and four wind project of 30 MW each.
In September 2018, Tunisia presented to national and international investors and financial institutions a list of 33 public-private partnership (PPP) projects in four sectors: 1) transport and logistics; 2) energy, water, and environment; 3) infrastructure and urban development; and 4) science and technology. U.S. companies are encouraged to pursue PPP projects of interest (http://www.igppp.tn/fr).