Foreign Investments in Tunisia Surge 18% in Q1 2024
In the first quarter of 2024, foreign investments in Tunisia climbed to 517.4 million Tunisian dinars (Mtnd), marking an 18% increase compared to the same period in 2023, which stood at 438.3 Mtnd.
This growth is primarily driven by direct foreign investments (IDE) and portfolio investments, commonly referred to as stock market investments. IDEs have skyrocketed by 27.7%, rising from 404.8 Mtnd in Q1 2023 to 516.8 Mtnd for the same period in 2024. In contrast, portfolio investments have plummeted by 98%, dropping to a mere 600,000 dinars, down from 33.6 Mtnd previously.
According to data provided by the Tunisian Agency for the Promotion of Foreign Investment (FIPA) and relayed by the Tunisian Press Agency (TAP), the sectoral breakdown of IDEs reveals a strong presence of investments in several key sectors. The manufacturing industries have attracted significant investments, amounting to 250.5 Mtnd in the first three months of 2024, compared to 234.6 Mtnd for the same period in 2023. The energy sector has also recorded notable growth, reaching 176.9 Mtnd in Q1 2024. Similarly, the services sector has attracted substantial investments, increasing from 52.8 Mtnd to 84.5 Mtnd.
A surge has also been observed in the agricultural sector, with a significant increase from 490,000 dinars to 4.9 Mtnd in the first quarter of the current year. This growth is attributed to an innovative project from the Netherlands in the Gabès governorate, focused on geothermal primeur production, according to Hatem Souissi, central director at FIPA.
However, the significant decline in portfolio investments is mainly due to fluctuations in the exchange rate, particularly following the increase in capital of certain listed companies in 2022 and 2023.
Despite these fluctuations, Tunisia remains determined to attract more international investments, with ambitious targets set for 2024, aiming to reach 2800 Mtnd in international investments.