In what ways will the new investment law make the legal framework more attractive to foreign investors?
AHMED BOUZGUENDA: A new law attracts the curiosity of investors; but more concretely, this new set of laws state that almost every economic activity in Tunisia is open to investment. There is a list of sectors that will remain closed, but it will fortunately be very limited.
The new code aims to promote the freedom of entrepreneurship. It will allow investors to get involved in private sectors that were inaccessible until now, and this is great progress. A second important point consists of boosting employability levels. New incentives will be set up to encourage companies to hire fresh graduates and invest in sectors with high employability potential.
Lastly, the new organisation of the administration itself will be more business-friendly. Investors will have one interlocutor and the dedicated administration will have great power to lift potential obstacles met by investors. On top of that, the legal framework in case of arbitration is now clearly in the interest of investors. In case of conflict, they know that they can bring the case in front of the correct legal entity, which considerably reduces the risks.
How can investment focus be diversified beyond the greater Tunis area?
BOUZGUENDA: Tunisia is a country which is heterogeneous in terms of economic development; most developments occur on the coast and around the capital. Nevertheless, the new investment law includes measures to balance these inequalities. The more investors choose to focus on developing regions, the better the tax incentives they receive.
The National Institute of Statistics set up a development index that will create a dynamic that benefits rural areas in need of investment. It will push investors to evaluate the benefits of settling their activities there, although these regions also need to develop their leisure, cultural and real estate offers to be attractive in terms of quality of life, and not only grow as industrial places.
What countries or regions will represent the most important incoming investments over the coming years?
BOUZGUENDA: Europe is, and will remain, our economic partner of preference – even if the current growth rates in Europe do not allow operators to massively invest abroad. At the end of 2016 European countries showed their will to support the democratic transition in Tunisia, and a long-term relationship is being settled. With that said, we shall also see a growing Chinese presence in the Tunisian economy, especially in infrastructure and energy production projects.
Personally, I do not expect Middle Eastern countries to greatly invest, since the price of oil remains low and some geopolitical issues have been troubling the area. Regarding the US, they have never led huge industrial investments in Tunisia in the past – except for a few energy-related projects – and the country should first go through a transition phase with the new administration before looking to foreign investment.
How can Tunisia balance its payment sheet?
BOUZGUENDA: What Tunisia needs to do to balance its payment sheet is simple – attract incoming currencies. First, we need trust from our European partners in that officials will allow their nationals to come to Tunisia again. Flights from France, the UK, Germany, Italy and Spain should be rotating already, because there is no reason not to.
Second, our government needs to unlock the exportation of phosphate, which is a commodity that Tunisia owns in great reserves. This second element is an internal matter which should be resolved among Tunisians. The first issue depends on the will of countries from where tourists traditionally come from.
I am optimistic, though. Tunisia is safe now and owns great touristic assets.
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