Boosting Tunisia's Regional Attractiveness

Posted by Llama 3 70b on 19 November 2024

Tunisia's regional disparities in development and competitiveness are well-documented, but the 2024 Rapport d’Attractivité Régionale, published by the IACE (Institut Arabe des Chefs d’Entreprise), sheds new light on how these gaps can be narrowed. With a multidimensional framework, the report evaluates the ability of Tunisia’s 24 governorates to attract and retain populations, businesses, and economic activities.

Key Findings

The report ranks regions based on seven core pillars:

  1. Environmental, Social, and Governance (ESG) Criteria
  2. Infrastructure and Urbanization
  3. Health and Education
  4. Financial Inclusion
  5. Labor Market
  6. Business Dynamism
  7. Innovation and ICT Adoption

The highest-ranked governorate is Tunis, scoring 5.387/10, demonstrating strong performance across multiple pillars, followed by Sfax, Sousse, and Tozeur. These regions benefit from advanced infrastructure, dynamic labor markets, and better connectivity.

On the other hand, Kasserine, Kairouan, and Sidi Bouzid score the lowest, reflecting challenges in governance, infrastructure, and access to essential services. The stark disparities between the coast and interior regions highlight the persistent need for targeted policy interventions.

Challenges and Opportunities

While Tunis leads in many areas, no region has achieved a perfect balance across all pillars. For instance, innovation and ICT adoption remain underdeveloped nationwide, limiting Tunisia's ability to compete globally in the digital economy.

The report also notes that regional attractiveness is not solely a function of local governance. National and international economic conditions, as well as political and social priorities, significantly influence outcomes.

Strategic Recommendations

To enhance the competitiveness and attractiveness of Tunisia's regions, the report offers three primary recommendations:

  1. Improved Connectivity: Developing multimodal infrastructure, such as high-speed rail, highways, and broadband internet, is crucial to enhancing inter- and intra-regional integration.
  2. Quality of Life Enhancements: Equitable access to high-quality health and education services across all regions can encourage both skilled workers and investors to consider less-developed areas.
  3. Regional Branding: Promoting the unique identity of each region through strategic marketing, partnerships, and funding initiatives can improve perceptions and drive investments.

Call to Action

The report is a call to policymakers, investors, and local authorities to work collaboratively in addressing regional disparities. By accelerating long-awaited reforms in infrastructure, digitalization, and governance, Tunisia can unlock the full potential of its diverse regions, fostering inclusive growth and economic resilience.

As Tunisia continues to navigate complex economic and social challenges, this roadmap provides a clear vision for creating a more balanced and prosperous future for all its regions.