NUMOV Round Table_ Tunisia - 13th April, 2021 Mr. Beligh Ben Soltane - Chairman
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NUMOV Round Table_ Tunisia 13th April, 2021 Investment Support & facilitation in Tunisia: TIA's mission and support services Mr. Beligh Ben Soltane – Chairman
Why Tunisia ? A friendly business environment A strong talent pool for industry and aiming to promote investment, services, recognized at regional level regional development and for its qualifications, skills and its research & development training quality Close geographical proximity to European countries and several free trade One of the most competitive countries agreements with Sub-Saharan, Middle in the world, in terms of labor costs as East and European Union markets well as a wide incentive program Dedicated Infrastructure facilitating A new attractive investment continual supply chain framework promoting startups and entrepreneurship One of the most attractive A multicultural and a multilingual country in Africa according to the country promoting diversity and main international rankings mutual tolerance An industry in constant growth, TIA : A supporting agency offering bringing together more than 5200 information, direct field support and national and international companies incentives to investors enabling them covering the major economic sectors to concretize and develop their with a well-established Automotive businesses in Tunisia Industry
A FRIENDLY BUSINESS ENVIRONMENT The country is aiming to facilitate investment thought improved and simplified procedures as well as comprehensive and fair investment framework STARTING A BUSINESS IN TUNISIA 0 100 94.6 Tunisia (Rank 19) 93.1 France (Rank 37) 88.2 91.5 98.6 100 93.0 Morocco (Rank 43) 87.8 Egypt (Rank 90) Paid-in min. Procedures Time Cost 84.0 Regional average (MENA) capital 78.0 Algeria (Rank 152) Equal Fair treatment Protection of Freedom to transfer Land ownership for Possibility to recruit for local and foreign intellectual property funds (profits, the implementation 30% of foreign investors dividends and of investment executives during assets) abroad. projects the first 3 years Source : https://www.doingbusiness.org/content/dam/doingBusiness/country/t/tunisia/TUN.pdf
A KEY GEOGRAPHICAL POSITION Tunisia gives investors preferential market access through several trade agreements to more than 100 countries with nearly 1,85 billion consumers A GATEWAY TO EUROPE AND SUB-SAHARAN AFRICA Flexible capabilities to serve the European market Greater Arab Free Trade Area (GAFTA) For the 18 Arab countries in the MENA region, all products, both agricultural and industrial are traded freely and are exempt from all customs duties* European Union All industrial products exchanges with the African Continental Free Trade Area (ZLECAF) European Union are exempt from all The African Continental Free Trade Area (ZLECA, ZLEC or customs duties Zlecaf) is a free trade area project currently being implemented across the entire African continent. The ZLECAF will be launched by January 2021. Tunisia has already approved its membership and will benefit from future trade advantages and exemptions with the Common Market of East and Southern Africa ZLECAF members (COMESA) All industrial and agricultural products, fishery products and handicrafts exported to COMESA markets* are totally exempt from all customs duties and other charges and taxes Arab-Mediterranean Free Trade Agreement (AGADIR) All agricultural and industrial products are freely traded Trade agreement with Tunisia and are exempt from all customs duties between Tunisia, Future Trade agreement with Tunisia Jordan, Morocco and Egypt Except for goods exported to Eritrea, Ethiopia, Eswatini, the Democratic Republic of Congo and Uganda that includes specific treatments as fellows - http://www.commerce.gov.tn/Fr/union-europeenne_11_224#? Except of a common Arab list of prohibited products excluded from the application of this for reasons of safety, health, religion or environmental protection - http://www.commerce.gov.tn/Fr/convention-de-facilitation-et-de-developpement-des-echanges-commerciaux-inter-arabes-grande-zone-de-libre-echange-arabe_11_227
DEDICATED INFRASTRUCTURE Combined with secure trade corridors and gateways, our infrastructure facilitates continual supply chain and business operations Located at the junction of the eastern and western Multiple maritime connection basin of the Mediterranean, to Europe from the 4 major and only 140 km from commercial harbors in Tunisia Europe with a monthly frequency of more than 60 regular lines Tunisia 9 international A central position in airports providing more the EUROMED zone The major international than 2,000 weekly containers’ companies flights and serving about 50 present such as MSC, foreign cities - Within less MERSK, CMA CGM, than three hours flying time BOLORE, STE CHINA from European capitals and SHIPPING and COSCO etc.. major cities of the Middle East
TUNISIA, ONE OF THE MOST ATTRACTIVE COUNTRIES IN AFRICA Tunisia ranks first in Africa in the most prestigious international index about entrepreneurship, innovation, technology capabilities and skills 1st in North Africa in 1st in the MENA region & 1st in North Africa in the Global the Global Innovation Index Africa and 23rd worldwide Competitiveness Index “Skills that measures innovation in the Startup Visa indicator” that measures, capabilities within Institutions, Attractiveness Index that among others, the Extent of staff Human capital and research, measures Business training, the Quality of vocational Infrastructure, Market Environment and Ecosystem training, the Skillset of graduates, sophistication, and Business Maturity the Digital skills and the Ease of sophistication (Startup Visa Program 2020) finding skilled employees (Global Innovation Index 2020) (GCI 2019*) 1st in North Africa in High-technology exports 1st in Africa and 2nd in MENA for % of manufactured exports for Researchers in R&D products with high R&D intensity, such 1,772 per million people engaged as in aerospace, computers, in the conception or creation of pharmaceuticals, scientific new knowledge, products, instruments, and electrical machinery processes, methods and systems (World Bank 2019*) (World Bank 2018*) Source : World Bank latest available data as of March 2021, Global Innovation Index 2020, Startup Visa programs 2020, Global Competitiveness Index 2019
A SOLID AND DIVERSIFIED INDUSTRIAL ECOSYSTEM With a diversified and a wide industrial sector, employing more than 580,000 employees, Tunisia has always been a privileged destination for FDIs and host today more than 3,650 active companies with foreign capital Breakdown of inwards FDI* per year in industry sector Industrial compagnies mapping – 2020 (2015 – 2019) in M USD Leather and Wood industries footwear 3,7% 4,2% 3 653 actives FDI companies in Electrical & Tunisia cross sectors (by December 2019) electronical 403 427 426 7,4% 373 Textile and 15 462 288 clothing Million Construction 31,5% TND materials 7,7% 5 466 FDI stock Industrial compagnies 2015 2016 2017 2018 2019 Employing more than Chemical 581 000 2019 10,6% employees 1 Electrical & 2 electronical Mechanical & 3 Metallurgical Agrifoods 526 projects created Mechanical & Metallurgical 41% of FDIs Chemical in 2019 including value 14,5% 20,8% 17% of FDIs 11% of FDIs 84% of extensions value value Source : http://www.tunisieindustrie.nat.tn/fr/conjoncture.asp | http://www.tunisieindustrie.nat.tn/fr/zoom.asp | https://www.bct.gov.tn/bct/siteprod/tableau_statistique_a.jsp?params=PL212010 * Industrial companies employing more than 10 employees
Automotive Sector : Tunisia, the third largest manufacturer of Auto parts in Africa Tunisia, a leading regional production platform with very strong growth KEY FIGURES Over 90 000 employees - ~66% of Electronics and Electric industry 300 companies operating in the sector in 2020 with more than 20 international nationalities 28% of total Tunisian exports - over Euro 2.4 billion with an annual growth rate of 12%, contributing to 4% of the national GDP 65% operating exclusively on international markets, with UE as a destination for 70% of the total exports Tunisia ranks among the Top 3 exporters of automotive components in Africa
Automotive Sector: recent investments The automotive sector in Tunisia have seen several new investments during the last two years despite the pandemic’s impact on the sector worldwide Main automotive investments (2019 – 2020) Job Year of Company Project Type creation investment Greenfield project 570 2020 Greenfield project 2300 2019 Greenfield project 1622 2019 Expansion project 1200 2020 Expansion project 811 2020
Automotive Sector : A WIDELY DEVELOPED ECOSYSTEM A wide range of national and international companies operating in the various segments of the Automotive value chain Wiring A GLANCE AT Leather and systems THE Automotive Textile ECOSYSTEM Mechanic Plastics Spare parts
ICT SECTOR : A priority sector ICT ecosystem consists of more than 1.800 companies spread mainly over the Greater Tunis area and the coastal cities and employs nearly 80.000 people. DEVELOPMENT OF THE NUMBER OF ICT ICT TERRITORIAL NETWORK OF ICT COMPANIES COMPANIES ➢ The ICT sector contributes to more than 7.5% of the 67 national GDP and has recorded an annual growth rate of more % than 7% over the period 2014 – 2017 Tunis ➢ Over 1,800 companies operate in the sector, 12% of which have 100% foreign capitalization DEVELOPMENT OF THE SECTOR’S EMPLOYABILITY Sousse 66 533 68 307 71 164 74 884 79 277 28 % CAGR 4,5% 2013 2014 2015 2016 2017 52,9 % 2,8 % Telecommunication Computer programming 34,8 % 0,5 % Other IT activities IT consulting Sahel region 8,6 % 0,4 % Data processing, data 28% of the 5% distributed over the Call centers activities hosting and related activities other regions companies www.youtube.com/c/powerupwithpowerpoint
SKILLED POOL OF TALENT AND RENOWN EDUCATION The country harness its large highly skilled pool of talents of more than 7000 engineers graduating annually to address the need of the industry HIGHLY SKILLED TALENT EDUCATIONAL HUBS BIZERTE Electrical engineering 1 Engineering school Software 1 Technical school Architecture Computing, data science Engineering TUNIS HUB 19 Engineering school 3 Technical Internet Of Things school Industrial, Electronics and Systems & Services Mechanism Engineering + 7,000 engineers graduating annually SAHEL HUB Electromechanical and Network Infrastructure 8 Engineering school mechatronics engineering And Data Security 2 Technical school Cloud Computing SFAX 4 Engineering school More than 260,000 students enrolled in universities in 2019 including 1 Technical school +54,000 in engineering and technical fields GABES QUALIFIED POOL OF TALENT WITH STEM FOCUS 2 Engineering school According to the UNESCO Institute for Statistics, tertiary students in Tunisia are most likely to graduate in a STEM field (science, technology, engineering mathematics), with more than 43% students receiving a degree in those subjects 43,3% 35,6% 34,9% 31,7% 26,3% +60 Technical and Vocational Education and Training spread over the whole country addressing industry needs Tunisia Germany Singapore India United Kingdom Source : http://www.mes.tn/page.php?code_menu=13
AN ECOSYSTEM FAVORABLE TO INNOVATION & ENTREPRENEURSHIP Tunisia is growing to become an innovative and vibrant market for startups thanks to a newly implemented legal framework for startups as well as synergetic and vibrant supporting environment TALENT DRIVING REAL INNOVATION SUPPORTING ENVIRONMENT ENABLING FRAMEWORK Tunisia is considered one of A symbiotic environment A unique legal framework the most innovative countries between startups, corporates, promoting startups including in Africa and the Arab world, government and investors series of advantages and ranking 52nd globally in creating an active community incentives for entrepreneurs, Bloomberg Innovation Index driving policy change startups and investors and and 23rd worldwide in the and supporting startups enabling talent upscaling, Startup Visa Program from incubation to global innovation clustering and Attractiveness Index upscaling access to markets (2020)
INNOVATION & ENTREPRENEURSHIP In March 2021, Tunisia registered more than 450 labelized new innovative startups within the new “Startup Act” framework – top entrepreneurs' sectors are Software Big Data & Analytics, e-Commerce & Marketplace and Media, Gaming & other creative content Economic activities of startups Jobs created by startups Breakdown of startups by sector of activity 450 labelled startups by March 2021 23,7 M$ ~3000 1 Cumulated 48 startups Total jobs Revenue 72,4 % local revenue created 40% Women Software, (2019) 2 Big Data & e-Commerce Analytics 3 & Marketplace Media, Gaming & other creative More than 62% of 28% of jobs were created during content the labialized startups generated the first year of implementation of the revenues by the first year (2019) Startup Act +80% in turnover growth for 11 employees on average for QUAL I startups (2018 – 2019) startups KUILIN K IPOM M Markets addressed by the Tunisian startups GO MY BIZ RHINTO Europe S 46% Asia North America 10% 16% EMA 22% Sub-Saharan Africa 5% 42 startups 48 startups 35 startups Source :startup act annual report 2019
TUNISIA INVESTMENT AUTHORITY We facilitate the success of your investment SINGLE POINT NETWORK DIRECT SUPPORT FROM OF CONTACT OF EXPERTS THE GOVERNMENT TIA will support you from the We bring together a team of TIA is the sole coordinator with start of your business set-up in local experts with deep the “Higher Investment Council” Tunisia, assisting you with all knowledge of the Tunisian in Tunisia. We can promptly raise administrative procedures, your investment ecosystem. Our your concerns to the Higher site location & due diligence up team will assist you with your Investment Council, in order to to the incentives’ request & data request and market studies quickly address your needs. payment. to bring more insight for your business set-up in Tunisia. OUR VISION OUR MISSION We are the reference partner for investors and We are the Single Point of Contact for local will support them through a transparent, and international investors. With our network engaging and trustful approach. of partners, we act as a facilitator for the completion of your investment project through reliable information, simple procedures and bespoke support.
TUNISIA INVESTMENT AUTHORITY We assist you through the lifespan of your project Market Site Business Incentives Customer care Intelligence Selection Incorporation services Before you decide on a Together with your We assist you to remotely We provide details and We follow up on your new investment in stakeholders, we team up carry out all necessary assist you with your project and support your Tunisia, we can address to fully apprehend the formalities to complete request for obtaining company after the all your relevant details of your project. your company's Legal incentives such as completion and questions related to Then, based on your Incorporation. regional development, inauguration of your market(s) and sectors, location factors, we R&D incentives, and project in Tunisia, as well benchmarks and identify and present incentives for national as during the ramp up of countries competitive potential sites, so you can interest projects. your operations. positioning as well as select the best fitted business environment option for your project. and opportunities.
TUNISIA INVESTMENT AUTHORITY TIA 2020 Key figures A particular attention was given to national and international investors. Understanding their concerns and needs helped us better supporting them and facilitating their investment journey in Tunisia. 2.8TND 58 + 13 000 billion 2020 Key figures Investment Investment projetcs Jobs amount www.youtube.com/c/powerupwithpowerpoint
TUNISIA INVESTMENT AUTHORITY German investment breakdown: 2019-2020 Number of Projects Investment Amount (MDT) Job creation 11 495,47 5450 Investment breakdown by sectors Investment breakdown by Project nature 21,00 61,198 570 1275 173,42 31 Manufacture of medical and dental instruments and supplies Investment 186,75 268,95 Manufacture of automotive equipment Manufacture of games and toys 4175 4849 Investment Textile 53,10 35,48 434,271 25,72 ER Industry Services Greenfield Expansion
Tunisia Investment Authority Rue du Lac Huron, Les Berges du Lac 1, 1053 Tunis www.tia.gov.tn +216 70 248 148 contact@tia.gov.tn © 2021 TIA – Copyright reserved
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