Habib Karaouli, President of the Forum and CEO of CAP Bank at the Economist Forum
In a recent exchange at the 25th edition of the Maghreb Economist Forum, Habib Karaouli, CEO of CAP Bank and President of the Forum, shared profound insights on the perception of the world and often-neglected economic realities. Inspired by the thought of Emmanuel Kant, he emphasized the importance of considering others' perspectives rather than being limited to one's own perceptions.
Karaouli highlighted two crucial points. Firstly, he stressed that Foreign Direct Investment (FDI) complements, rather than replaces, domestic investments. It is essential to create a favorable business environment for local investors before attracting foreign investments effectively. "This progression, drawn from economic history, reveals that public investment often precedes private and foreign investment, thus emphasizing the importance of internal development for sustainable growth," he declared.
Secondly, he emphasized the priority of exporting services over goods. Karaouli urged the promotion of Tunisian service exports to other regions, as this can lead to opportunities for exporting goods where the country has comparative advantages.
The economic expert provided a striking analysis of the investment situation in Tunisia since the 2008 crisis: a trend of deceleration of investment, even disinvestment, highlighting the urgency of concrete actions to revitalize the country's economic sector. In his remarks, Karaouli stressed the crucial role of public authorities in promoting domestic investment. According to him, efforts in this direction will inevitably lead to the development of Foreign Direct Investment (FDI), whether through partnerships or other forms of international investment.
Currently, Tunisia has one of the lowest investment rates, barely reaching 12%. However, Karaouli remains optimistic about the country's future prospects, emphasizing that with good strategies and a deep understanding of the issues, it is possible to reverse the trend.
He nostalgically recalled the glorious years of the 1970s, when Tunisia had investment rates exceeding 37% and savings rates reaching 24%. This comparison highlights the country's untapped potential and the need to regain this economic growth momentum. For Karaouli, the real challenge lies in the political will, understanding economic mechanisms, and the ability to make informed decisions to stimulate investment and relaunch the Tunisian economy.
Furthermore, Karaouli, citing data from a 2003 English study, emphasized the importance of the United States and India as destinations for Foreign Direct Investment (FDI), while African countries, including South Africa, lag behind in these rankings. He stressed the opportunity for Tunisia to draw inspiration from these international successes to attract both FDI and national investments, highlighting the need to capitalize on these determinants to stimulate the country's economy.
"Let's play to our strengths," he expressed with pride. Karaouli also emphasized the presence of talented and competent resources in the country as a major aspect to attract investments in Tunisia. He noted that taxation and tax issues are relegated to a less critical position in investors' decision-making, ranking 15th according to the cited criteria. "Let's play to our strengths," he reiterated, encouraging the exploitation of Tunisia's specific advantages to offer attractive conditions to investors and create a favorable investment environment. For him, domestic investment is essential for economic growth, highlighting Tunisia's competitive advantages in sectors such as healthcare, private higher education, training, education, and agri-food. In conclusion, he stressed the need to capitalize on these strengths rather than venturing into areas where the country has no advantageous position.
