Former Finance Minister Calls for Industrial Co-Production and Value Creation in Tunisia

Nizar Yaïche urges a shift from low-value subcontracting to strategic partnerships, proposing a renewable energy corridor, investment guarantees, and deeper integration into European value chains.

Former Tunisian Finance Minister Nizar Yaïche has called for a fundamental transformation in industrial cooperation between Tunisia and Europe. According to Yaïche, the current relationship is still heavily marked by low-value-added subcontracting, leaving significant potential for cooperation largely untapped. Speaking at the inaugural Tunisia Industry Talks on Wednesday, October 21, 2026—an event organized in partnership with the Konrad-Adenauer-Stiftung Tunisia—Yaïche argued that both partners need to change their approach and engage in projects of a different magnitude.

“Today, we are a small, low-value-added subcontractor for Europe,” Yaïche stated, clarifying that this assessment specifically concerns European industrial investments in Tunisia, rather than the entire national industry.

The Gap Between Potential and Reality

To illustrate this disparity, Yaïche cited two key figures: Tunisia accounts for only 1% of jobs created by foreign investments outside the European Union, and just 0.11% of the associated revenue. These indicators highlight the gap between cooperation possibilities and the economic value actually generated.

This observation comes at a time when Europe remains Tunisia’s major partner, absorbing 72% to 73% of Tunisian exports. However, Yaïche noted that geopolitical tensions, rising energy costs, China’s industrial progress, and transformations driven by artificial intelligence necessitate a new approach to competitiveness.

Key Proposals for a New Industrial Partnership

Yaïche outlined several strategic pathways to elevate the Tunisia-Europe industrial relationship:

1. Renewable Energy Corridor

A central pillar of his proposal is the creation of a clean electricity corridor between Tunisia and Europe.

• Initial Capacity: Start with 5 to 5.5 gigawatts (GW).
• Long-term Goal: Scale up progressively to 100 GW over a 10-to-20-year horizon.
• Feasibility: Yaïche estimates that utilizing just 3% to 4% of Tunisia’s desert area could achieve this capacity with current technologies.
• Structure: The project would combine renewable production, energy storage, and electricity transmission.
• Priority Use: A portion of the production would prioritize domestic needs, particularly for the Tunisian Electricity and Gas Company (STEG), before exporting the surplus.
• Economic Impact: The initiative could generate an estimated 80,000 to 100,000 jobs.
• Financing Model: Yaïche advocates for project finance structures and long-term power purchase agreements (PPAs) to limit reliance on public debt and state guarantees.

Note: These figures are estimates presented in his keynote and are not guaranteed outcomes. Realization will require detailed studies, financing, adapted infrastructure, and agreements with relevant partners.

2. Facilitating Investment and Co-Production

Beyond energy, Yaïche proposes deeper integration of Tunisian products into European value chains:

• Equivalence Mechanism: Create a mechanism to recognize Tunisian products as equivalent to European ones, based on criteria such as standards, traceability, and environmental impact.
• “Europe Tunisia Africa Investment Act”: Establish a dedicated framework to support investors from preliminary studies through financing and production. This could combine exchange rate guarantees, risk-sharing, and existing financial instruments.
• European Co-Production Facility: Create a dedicated European facility for industrial co-production with Tunisia, to be discussed within the framework of the next EU Multiannual Financial Framework (cycle starting in 2028).
• Guarantees over Credits: Prioritize guarantees that can mobilize significant financing rather than additional credits that would increase corporate debt. Yaïche mentioned envelopes on the order of one billion euros, noting these are proposals, not yet allocated funds.
• Industrial Prototyping Platform: Develop a platform to bridge research and business, protect intellectual property, and facilitate the transition from innovation to production.
• Sectoral Pacts: Implement sector-specific agreements tailored to the needs of industries such as textiles and electronic components.

Building Trust and Measuring Success

Yaïche emphasized that this ambition requires a relationship of trust. He specifically referenced tensions surrounding Tunisian olive oil exports to Europe, calling on European partners to make a gesture on this issue to prevent it from undermining broader economic cooperation.

On the Tunisian side, the former minister recommends improving project execution capacity and reassuring investors. He proposes the creation of a dashboard to track:

• Mobilized financing
• Jobs created
• Value added generated

Conclusion: Transforming, Not Abandoning, the Partnership

Yaïche’s message is not to challenge the European partnership but to transform its modalities. The goal is to move from a cooperation primarily based on subcontracting to a relationship where Tunisian companies participate more actively in production, innovation, and value creation.

The mechanisms proposed remain subject to examination and negotiation. Their ultimate impact will depend on their feasibility, the decisions of the partners involved, and the ability to translate these proposals into concrete projects.