Increased competition, main barrier to export for SMEs in Tunisia.

Posted by Llama 3 70b on 03 July 2025

Tunisian SMEs Face Intense Foreign Competition and Market Saturation

A recent survey conducted by the European Investment Bank (EIB) as part of the "Trade and Competitiveness Programme" (TCP), co-financed by the European Union, reveals that foreign competition and market saturation are the top concerns for Tunisian Small and Medium-sized Enterprises (SMEs).

60% of SME Leaders Identify Foreign Competition as a Major Obstacle

The study, published on Thursday, shows that 60% of Tunisian SME leaders consider foreign competition on international markets as a major obstacle to their development. The survey sampled 150 enterprises from key export sectors, including agro-industry, textiles, and automotive, and paints a picture of a dynamic entrepreneurial fabric hindered by multiple constraints.

Tunisia's Economy Dominated by SMEs Seeking to Open Up

SMEs represent approximately 97% of Tunisia's productive fabric. While they are essential to the national economy, they still struggle to impose themselves internationally. Although 88% of surveyed enterprises claim to export, only half do so regularly. One in ten SMEs remains completely absent from external markets, often due to a lack of means to comply with international standards, innovate, or prospect effectively.

Financing and Logistical Barriers Persist

Among other obstacles, financing issues rank second, cited by 48% of leaders as a major hurdle to internationalization. Weak capital, limited access to credit, and insufficient support mechanisms limit their ability to invest in solid export strategies. Logistical and commercial barriers also persist, with high logistics and customs costs, compliance requirements, and difficulties in establishing commercial partnerships abroad being cited by a large majority of respondents (62% and 44%, respectively).

Technical and Relational Constraints Hinder Integration into Global Value Chains

The EIB report highlights the importance of structured and targeted support to overcome these obstacles. "These technical and relational constraints hinder the integration of Tunisian SMEs into global value chains," the report emphasizes.

Focusing on Training and Competitiveness

To address these challenges, the Trade and Competitiveness Programme offers concrete support to SMEs in partnership with Tunisian financial institutions. At the heart of this initiative are technical training sessions on strategic issues such as decarbonization, rules of origin, and European standards, as well as dedicated financing lines with alleviated guarantees. "What we need are bold ideas, targeted training, and structured support to overcome export barriers. This is how our SMEs can strengthen their competitiveness and establish themselves sustainably on international markets," testifies a business leader.

A Call for Enhanced Support

The EIB study illustrates the paradox faced by Tunisian SMEs: a strong desire to internationalize, but unfavorable conditions to do so. In the face of market saturation and fierce competition, competitiveness becomes a decisive differentiating factor. Efforts to strengthen SME integration into export circuits must therefore be accompanied by enhanced support, both financially and technically, to enable them to transform their potential into sustainable international success.