Tunisia's Startup Ecosystem Faces Significant Obstacles Despite Growth
Although Tunisia has recorded 1,046 labeled startups as of June 2024, with a 205% growth in its entrepreneurial ecosystem between 2021 and 2023, the country is facing significant obstacles that hinder the development of its innovative young shoots. An exploratory study reveals a loss of attractiveness, with Tunisia dropping 8 places in the global startup ecosystem ranking between 2020 and 2023, and an alarming decline in new creations, from 224 in 2020 to just 3 in 2023.
These difficulties persist despite strategic initiatives like "Startup Tunisia", based on three pillars: Startup ACT (legal framework), Startup INVEST (financing mechanisms), and Startup ECOSYSTEM (global support). The study aimed to evaluate the effectiveness of these measures and identify additional actions to create a more favorable investment climate.
The main challenges identified by startup founders are numerous: heavy and inefficient administrative and bureaucratic constraints, cited by 60.87% of respondents. The regulatory framework is deemed inadequate by 43.5%, particularly for Fintechs, which must comply with traditional banking rules, and the regulatory "sandbox" remains inactive. Access to financing is also a major obstacle, with slow and cumbersome procedures for fundraising and a lack of transparency in the allocation of aid. Local market problems, informal competition, and payment delays in public markets exacerbate the pressure. Brain drain and political/social instability are also cited as concerns.
To remedy this situation, the study recommends several actions, including the creation of a one-stop shop for startups, the flexibilization of participatory financing, transparency in fund programs, the establishment of a specific legal status for Fintechs, and the acceleration of the adoption of the new exchange code. Measures to facilitate access to public markets and support internationalization are also essential to enable Tunisian startups to reach their full potential.
