Foreign Investment in Tunisia: A Missed Opportunity?
The evolution and volume of foreign investments in Tunisia have been below expectations, considering the country's scientific, technical, and technological potential, as well as its investment opportunities, according to Hédi Mechri, Director of the Maghreb Economist magazine. "Tunisia attracts the least amount of Foreign Direct Investment (FDI) in the Euro-Mediterranean region, despite having the vocation and assets to rank much higher," he added.
During the 25th annual forum of the Maghreb Economist, the debate on the need to relaunch foreign direct investments reached its peak, with interventions from Fethi Zouhair, Governor of the Central Bank of Tunisia, Namia Ayadi from the Tunisian Investment Authority, and Marcus Cornaro, Ambassador of the European Union in Tunisia.
The Governor presented some alarming figures on foreign investments in Tunisia. He confirmed that during the 2009-2013 period, FDI flows to Tunisia decreased by 58% compared to the previous period (2006-2010), before the revolution. Moreover, the share of FDI in total long-term external financing decreased from 46.3% in 2006-2010 to 17.6% in 2019-2023.
This loss of confidence has led to an increase in external debt in recent years. It is essential to note that the share of FDI in GDP has also decreased, from 4.1% to 1.5%. These figures highlight the urgent need to react and take measures to revitalize foreign investments in Tunisia.
Diversification of investment sectors is crucial. While the manufacturing industry remains a pillar, it has recorded a 13% decline. On the other hand, the services sector has emerged as an attractive terrain, with a 15% increase in investments.
The energy sector, once promising, requires revitalization, as Tunisia's 42% energy dependence poses challenges in attracting green and sustainable investments. This is all the more crucial given the global evolution of the energy sector, particularly with climate change.
Furthermore, Nouri emphasized the importance of capitalizing on an often-underestimated asset to attract investments: Tunisia's elite. This elite represents a significant comparative advantage at the international level. "We have a highly qualified and competent workforce, a precious resource for any serious investor," he stated. However, every year, Tunisia loses this elite, including doctors, engineers, and other professionals, who leave the country.
This results in an estimated loss of $200 million, representing the cost of their training. Additionally, the financial transfers necessary to support young students abroad represent an additional expense of 400 million dinars. In this context, Nouri expressed his strong desire to see these talents return to Tunisia, particularly in the financial sector, and committed to working towards this goal.
He has even initiated discussions with ambassadors to facilitate the return of Tunisian talents and place them in financial institutions, with salaries commensurate with their merit.
