Tunisian Companies Conquering Africa Challenges and Opportunities Discussed at the Qawafel Gathering

Posted by Llama 3 70b on 23 December 2024

Qawafel Gathering: Unlocking Tunisia's Internationalization Potential

On December 18, 2024, Qawafel held its second flagship event, the Qawafel Gathering, to kick-start discussions on mechanisms and tools to support the internationalization of Tunisian businesses across the continent. The event brought together experts, entrepreneurs, and representatives from public and private institutions to analyze obstacles, unveil strategic opportunities, and share key recommendations.

Support Tools for Internationalization

Among the presented mechanisms, the Foprodex (Export Promotion Fund) emerged as a crucial lever to support Tunisian businesses in their international development. This fund assists companies in conducting prospecting missions, participating in international trade fairs, and developing their commercial network. The offered subsidies cover up to 60% of prospecting costs for Sub-Saharan African markets, reflecting a strategy to encourage exports to this promising region. However, improvements were suggested during the discussions.

Participants emphasized the need to make this mechanism more accessible and adapted to the needs of startups, which often lack the resources to navigate complex procedures. They also called for simplifying and clarifying the eligibility criteria and improving communication to raise awareness among businesses about this mechanism. These adjustments aim to maximize the impact of FOPRODEX and strengthen its role as a catalyst for Tunisia's presence in African markets.

Trade Agreements: A Springboard for Tunisia's Economy

The African Continental Free Trade Area (AfCFTA) was highlighted as a major opportunity to accelerate trade exchanges and reinforce economic integration on the continent. Since its ratification by Tunisia, this agreement has enabled the harmonization of tariff rules and offered a favorable framework for Tunisian exports. It represents a vital gateway for businesses seeking to establish themselves in strategic African markets.

However, participants pointed out persistent challenges, including the presence of non-tariff barriers and the need for international certifications to meet market standards. These constraints require reinforced support to help businesses comply with these requirements and fully exploit the benefits of AfCFTA.

Access to Information: A Central Challenge

Access to relevant and up-to-date information on markets and export procedures is a major challenge for Tunisian businesses. To address this, platforms like Africa Trade Agreements centralize essential data, while tools like Trademap and ITC are encouraged for better analysis of opportunities. Amal Mghirbi, Team Leader of the GIZ's program to support trade agreements with Africa, also announced the organization of specific training sessions starting from late 2024, in partnership with the Ministry of Trade and Export Development, to support businesses in understanding trade agreements.

Entrepreneur Testimonials: Success through Accompaniment

Béchir Benbrika, CEO of SmartFarm, shared his company's experience in the Agritech sector. Thanks to the Agritech Tunisia program, supported by STECIA Internationale, SmartFarm was able to establish itself in markets like Senegal and Côte d'Ivoire, benefiting from crucial accompaniment to limit financial risks and succeed in its first international operations. This testimony highlights the vital role of structured programs in supporting Tunisian startups.

Recommendations for a Strengthened Export Ecosystem

Several key recommendations emerged from this meeting:

  • Professionalization of businesses and support structures: Integrate regulatory aspects into project structuring and reinforce the skills of economic actors.
  • Improvement of financing mechanisms: Simplify procedures, clarify eligibility criteria, and strengthen collaboration with banks to facilitate access to funds.
  • Valorization of international certifications: Raise awareness among businesses about the importance of standards and certifications to penetrate new markets.
  • Exploitation of AfCFTA opportunities: Encourage businesses to take advantage of tariff reductions and new commercial networks created by this agreement.

A Promising Future Ahead

This edition of the Qawafel Gathering reaffirmed the commitment of Tunisian economic actors to seize the opportunities offered by the African continent. Through constructive discussions, concrete solutions were identified to strengthen the export ecosystem, improve access to information and financing, and encourage a more structured approach to internationalization. Africa, a true market of the future, offers Tunisian businesses opportunities to be seized with ambition and preparation.