Business Climat & Investment Opportunities in Tunisia

1. Business Climat & Investment Opportunities in Tunisia General Promotion Division , Investment Promotion Agency FIPA-Tunisia

2. Content • Overview • Tunisia’s macro-economic features • Tunisia a competitive investment site • Foreign Direct Investments in Tunisia • Investment Opportunities in Tunisia: • sectoral analysis

3. Overview

4. Tunisia, a strategic position in the euromediterranean region

5. Basic data • Official language Arabic • Common languages French, English • Climate Mediterranean • Time zoneGMT + 1 • Summer time zone GMT + 2 • Area 162 155 square kilometers • Population 9,9 million inhabitants • Activepopulation 34 % of overall population • Capital • Tunis (2 millions inhabitants.)

6. Tunisia : basic data 2006 • Average exchange rate 1TND = 0,752 USD = 0,598 Euro • GDP 40,8 million TND • GNP per capita • 3 798 TND • Imports 21,3 billion TND • Exports20,55 billion TND • Foreign investment 1,27 billion TND (4,24 privatization / TunisieTélécom).

7. Tunisia’s macro-economic features

8. Tunisia’s macro-economic features • Wide range of economic reforms • Positive economic track records

9. A wide range of economic reforms • Liberalization of prices, foreign trade and investment • Reform of the fiscal system • Reform of the financing & banking systems • Adoption of an intensive privatization program • Up-grading and modernization of the production

10. GDP Growth • 5,3% per year between 2003 and 2006 In % Ministry of Development and International Cooperation

11. Exports 2000-2006 • In TND billion Ministry of Development and International Cooperation

12. Inflation In % National Institute of Statistics

13. Tunisia : a competitive investment site

14. What if you make the best choice? • Access to the regional market • Skilled human resources • Improving infrastructure • A favorable legal and institutional framework • Positive international ratings

15. Access to the regional market • Member of the WTO since 1994 (Founding Member) • Free trade agreement with the EU • Member of the Arab free trade zone • Bilateral agreements with number of Arab & African countries • Free trade zone agreement with Turkey • Agadir agreement: free trade zone with Egypt, Jordan, Morocco • Free trade agreement with EFTA

16. Well located to serve EU market FTA EU/Tunisia Exports Free access of all industrial productsmade in Tunisiato EU (no quotas, no duties) Imports • Full exemption from customs duties for 40% of imports • Reduction of 80% for 30% of imports • Reduction of 67% for the remaining

17. Skilled human resources • Education is compulsory for boys and girls aged 6 to 16 and free at all levels including universities • 7% of GDP: a learning culture • 57,2 % of new job-seekers are university graduates • Vocational training: 343 centers and 56,000 trainees • R&D: 1% of the budget

18. A liberal legal framework The investment law: • It covers almost all sectors • Investment is free • A 100% capital ownership for foreigners • Free transfer of profits and capital • Same advantages for nationals and foreigners

19. Incentives to FDI The investment Law provides • Common incentives • Specific advantages are granted to certain priorities • Export • Regional development • Agricultural development • Environmental protection • Technology transfer

20. An efficient institutional framework Dynamic institutions • Setting-up companies at a one-stop-shop (ISO 9002) A Private Limited Company “SARL” or a Limited Liability Company “SA” needs one to two days to set be up. • Industrial exporting companies Simple customs clearance procedures, customsformalities within the company’s premises. • Supporting institutions MDIC – FIPA – API – CEPEX- Sectoral Technical Centers

21. Positive International Ratings Tunisia, highly rated since 1994 • Moody’s: Baa2 • Standard & Poor’s: BBB • IBCA-FITCH: BBB • R & I (Japan): BBB+ • Coface: A4 Investment Rating 2006

22. Positive International Ratings WEF Davos: Growth Competitiveness, Rankings 2006-2007

23. Foreign investment in Tunisia TUNISIA: THE RIGHT INVESTMENT SITE

24. Foreign companies in Tunisia 2,803 ANNUAL REALISATION OF PROJECTS • 180 between 1990-1999 • 370 between 2002-2006 • 7 Greek Companies (2.2 MD,320 employees) 818 348 31 FIPA - Tunisia

25. Successstories STREAM AUTOLIV VALEO LEONI AG UNILEVER ISUZU LEAR CORPORATION HAIER SAGEM LATECOERE DANONE ST MICROELECTRONICS THOMSON MULTIMEDIA PHILIPS KBE ELECTROTECHNIK KASCHKE • CARREFOUR DRÄXLMAIER SONY BRITISH GAS • SIEMENS BENETTON PIRELLI ALCATEL FUBA PRINTED CIRCUITS • MIROGLIO GENERAL ELECTRIC MICROSOFT • TELEPERFORMANCE ERA • LUCENT TECHNOLOGIES

26. Investment Opportunities in Tunisia: sectoral analysis

27. Sectoral analysis Most attractive sectors : • Mechanical, electric and electronic industries • Textile & clothing • Plastic industry • Shoes and leather • Food industry • Services: computer services & outsourcing

28. Sectoral Opportunities • Mechanical, Electrical and Electronics Industries • 835 companies employing 82 752 persons. • 298are wholly exporting companies • Number of companies with foreign participation : 424

29. Sectoral Opportunities Mechanical, Electrical and Electronics Industries Main Products : • Tooled mechanical parts , • Clutch disks, suspensions and brakes, transmission shafts, • Casted mechanical parts in Aluminum or Zamak « under pressure foundry” • Automotive bodies • Molds for plastic technical parts destined to the automotive sector • Passive mechanical components, coiled or not Condensers, resistances, transformers, inductions… • Electric or electro-magnetic inter-connection components Printed circuits, connectors, switches, contactors… • Components for households • Functional sub-assemblies Wires, cable harnesses, electrical modules, electronic cards.

30. Sectoral Opportunities • Textile and clothing • over 2000 companies employing around 206, 000 persons. • 1,656are wholly exporting companies • Number of companies with foreign participation : 1,140

31. Sectoral analysis Textile and clothing Main products • Jeans • Linen-drapery • Shirts Benetton Manufacturing Tunisia INESS Confection DEMCO LEVIS WRANGLER CELIO DIESEL Sara Lee Van de Velde Rouleau Guichard Playtex Van Laak

32. Sectoral analysis Textile and clothing Assets: • A good social image • Proximity to its main market : Europe • A recognized know-how in main clothing products • Mastership of the requirements of the clothing market • Reactivity and very short delays of answer: (a week for an order of replaces) • Renowned exporter to Europe • 6th supplier of the EU in clothing • 2nd supplier of France in clothing (after China).

33. Sectoral analysis Textile and clothing Opportunities • The upmarket clothing • Technical textile • Hosiery

34. Sectoral analysis • Plastics Industries • Main products : • Technical parts, with high-precision molds , • Complex parts for the automotive ,electrical, electronics, aeronautics, medical …. • Packaging (mono and multi- layers), films, sheets and plates • Building articles, sanitary articles • Main processes : Injection – Extrusion – Thermoforming- Compression –Composites. Main customers • France, Germany and Italy with respectively 58%,9%,9% of total exports. • Main foreign companies operating in Tunisia : P.V.L – NIEF PLASTIQUE – IMTEC – PLASTHOM – MGI COUTIER – IPH-SPID – SALIENS – ABB – STEDIM – LEMAN INDUSTRIE – SAVOY INTERNATIONAL- CAHORS- VALENTIN – GDP…

35. Sectoral analysis Attractive niches • Niches related to the following sectors : • Automotive • Telephoning, computer, audio-video • Household • Medical • Cables • Aerospace • Packaging

36. Sectoral analysis Leather and Shoes Main products : Shoes 56% Shoes uppers 27% Leather goods 10% Main foreign companies operating in Tunisia : ADIDAS, ANDRE, BAILLY, CELINI, FERRAGAMO, GBB FRANCE, IMBERT, KICKERS, LAFUMA, LEMAITRE, LUMBERJACK, MARCO BOTTI, MINELLI, MINERVA, NOEL, OTTERBECK, PICARD, RELLA, RIEKER, SOLARIA, …

37. Sectoral analysis Leather and Shoes Opportunities • Dress and leisure footwear • Leather goods • Up market women’s leather bags • Luggage • Middle and up market leather goods

38. Sectoral analysis Agri-business industries Main products : • Olive oil • Fish • Dates • Citrus fruit • Cereal by-products • Wine • Fruit and vegetables (potatoes, strawberries, …) • Main foreign companies operating in Tunisia : • DANONE, COCA COLA, NESTLE, UNILEVER, CHAMBOURCY, CANDIA, ALSA, EMMY, HEINZ, EVEN, LACTALIS, SODIAL, FROMAGERIE BEL Tunisia is the number one world exporter of dates and the number two world exporter of olive oil after the European Union

39. Sectoral analysis Agri-business industries Opportunities: • Processing of fruits (dates and other fruits) and vegetables (tomatoes and other vegetables). • Processing of olive oil • Production of new date-based products • Freezing of vegetables and fruits • Freezing and processing of seafood • Prepared food • Cheese made from fresh milk • Wine from grapes • Processing of blue fish (anchovy , sardines)

40. Sectoral analysis Information and Communication Technologies Main offered services • Software development • Systems integration • Engineering • Support services (assistance, training,…) • Call centers • Telemarketing • Technical support • Marketing • Assistance Alcatel • Ericsson • Gensym • Lucent technologies • IBM • Siemens • ST Microelectronics, HR Access SR Teleperformance, 3 SUISSES, Transcom, Stream

41. Sectoral analysis Information and Communication Technologies Assets • Excellent level of competence and technical qualification of engineers • Language competence. • Mastery of the latest technologies. • Software an Engineering companies offering flexibility, competitiveness and reactivity on world markets. • Competitive costs • Preferential telecommunication costs. Source: ECO/PAC study

42. Sectoral analysis Information and Communication Technologies Opportunities • Software development • Design and production of applications • Systems integration • Computer engineering services • Business Process Outsourcing • Call centers

43. The Foreign Investment Promotion Agency, FIPA -Tunisia

44. The Foreign Investment Promotion Agency, FIPA -Tunisia • A public institution established in 1995 • Authority: Ministry of Development and International Cooperation. • Organization: • Headquarters: Tunis • 5 offices abroad: Paris, Brussels, London, Cologne, Milan • Mission: To promote FDI in Tunisia Accomplished through the followings: 1- Image-building 2- Foreign investments’ attraction 3- Follow-up and aftercare 4- Contribution to the improvement of Tunisia’s attractiveness

45. The Foreign Investment Promotion Agency, FIPA -Tunisia 1. Tunisia’s image-building Through: GeneralpromotionEventsinTunisiaandabroad • Information days and seminars • Carthage Investment Forum Communication • Foreign press and specialized magazines • Documents, brochures, web-site… 2. Foreign investment attraction Through: Prospecting • Up-dated information on world investment trends • Targeted sectors/countries/regions • Direct contacts with targeted companies

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