Relaunching Foreign Direct Investment in the Current Global Context

As is customary, the 25th edition of the Maghreb Economist Forum 2024, in collaboration with the EU Delegation to Tunisia, goes beyond a simple invitation to reflect on a central issue, but constitutes an essential platform for discussing a topical theme. This is how Hedi Mechri, Director of Publications, opens the debate. This edition marks a turning point by tackling head-on the crucial question of "Relaunching Foreign Direct Investment (FDI) in the current global context."

The participation of the Minister of Foreign Affairs, Nabil Ammar, the Governor of the Central Bank of Tunisia, Fethi Zouhair Nouri, and the EU Ambassador to Tunisia, Marcus Cornaro, during the debate on April 24, testifies to our willingness to engage in a reflection on the dynamization of foreign investment in a country where, despite promising scientific, technical, and technological potential, these investments remain below their expected level, with a predominance of European investment representing 85% of the total.

Indeed, according to the founder of the Maghreb Economist, Foreign Direct Investment (FDI) in Tunisia has experienced a continuous decline, especially after the 2021 political upheavals, reducing the country's visibility in the eyes of major multinational investors. This highlights the urgency of addressing this issue, given its significant impact on the Tunisian economy.

A range of questions arises regarding the measures to be taken to attract more investment, how to attract more investment, and what is the current regulatory framework for foreign exchange? The FDI has historically linked Tunisia to Europe since the 1970s, serving as an anchor in the global economy and fostering a favorable environment for local investment, as emphasized by Hedi Mechri. At its peak, over 3,000 foreign enterprises were active in the manufacturing sector, making Tunisia a major industrial hub for Europe. This period also marked a reduction in external debt, with FDI financing future projects. However, the last decade has been challenging. The 2008-2009 global economic crisis and the 2010 revolution created a period of political and economic instability, discouraging foreign investment. This situation was exacerbated by the recent global health crisis, which severely impacted the Tunisian economy.

Nevertheless, Tunisia still has assets. Its geographical proximity to Europe has become a strategic advantage, accentuated by the health crisis, opening the way for a possible reorientation of European investments towards closer destinations," he declares optimistically.

To capitalize on these opportunities, Tunisia must improve its business climate. The announcement of the new exchange code is a positive step in this direction, offering stimulating prospects for foreign investment.