NO MARMITE IN TUNISIA

30th December 2007

In its competitiveness ranking for the year 2007-2008 published last year, the World Economic Forum has ranked Tunisia 32^nd out of 131 countries.  Figuring 1^st amongst the Maghreb and African countries and 3^rd in the Arab world.

The annual study is conducted in collaboration with its network of research institutions and economic organisations present in the studied countries.  With the introduction of six new economies, over 11,000 head of enterprises in the 131 countries concerned were polled.  In an attempt to improve the competitiveness calculation method, the forum has based this year’s report on 12 criteria as compared to 9 in previous years.  As well as the traditional refractive index, namely public institutions performance, the macro-economic environment quality, innovation and technological development, infrastructure quality, health, primary and higher education, training and the housing market efficiency.  The 2007-2008 is based on three criteria:

• The effectiveness of the labour market
• The performance of the financial market
• The size of the financial market

Tunisia has managed to ameliorate its ranking by one place from 33^rd the previous year to 32^nd this year figuring in the top half of the ranking table alongside Thailand 28^th, Spain 29^th, Kuwait 30^th, Qatar 31^st, and ahead of China 34^th, South Africa 44^th, India 48^th, and Turkey 53^rd.

At the macro-economic level, Tunisia’s economy which has been registering a growth rate of around 5.4 percentage points per annum, ahead of several European countries such as Italy 46^th, Slovenia 41^st, Portugal 40^th, and Greece 65^th.  In the Maghreb region it beats Morocco 64^th, Algeria 81^st, and Libya 88^th.  In the Arab world, Tunisia is positioned just after Kuwait 30^th, and Qatar 31^st, ahead of Saudi Arabia 35^th, the United Arab Emirates 37^th, Oman 35^th, Bahrain 43^rd, Jordan 49^th and Egypt 77^th.

In terms of performance of its institutions, Tunisia is classed 21^st.  This pillar takes into account factors such as public expenditure management, 2^nd, the weight of government regulations, 7^th and the effectiveness of the legal framework 23^rd.

Tunisia tops the list of African and Arab countries in the area of business environment quality (25^th world wide), innovation 26^th and 30^th for training and higher education. Technological ability 31^st, real estate market 31^st, only 79^th on the labour market efficiency, and even less favourable on wage due to a lack of flexibility 99^th.  For infrastructure in general, the country is ranked 32^nd, taking into consideration notably the quality of air infrastructure 43^rd, ports 36^th, and 66^th in terms of financial market sophistication.

30th December 2007

Wednesday 26^th December 2007 marked the kick off start date of the building works on Sama Dubai’s mega project “ Portail de la Mediterranee”. The demolition and clearing of the old buildings around the old Tunis port constitute the first phase of this colossal task which is projected to be accomplished within the next ten years at the staggering price tag of 18 billion dinars.

This breaking ceremony, confirms to the investing group the necessary seriousness it needs and that its project is moving fast towards achieving its goals. The demolition task was entrusted to the Tunisian company of Ahmad Bouzguenda and is expected to be completed by the end of March 2008. The Tunisian contractor’s equipments have already been moved to the old Tunis port neighbourhood few days earlier. Meanwhile, the Tunisian Authorities are studying the initial plans submitted to them by the Emirati group.

It is estimated that the project will permit the Tunisian economy to gain 0.34 percentage points growth annually until 2011 and 0.5 percentage points in the following 3 years.  90,000 jobs will be created over the next 10 years following the completion of the construction works.

27th December 2007

The rate of economic growth for this year is expected to reach 6.3% at constant prices compared with 5.5% in 2006, thanks to the consolidation of the manufacturing industry’s activity pace. However, the rise in world commodity prices has created certain tensions, notably on the balance of trade, prices evolution and public finances.

For the manufacturing sector, the production’s overall index grew by 9% during the first ten months of 2007, up by 2% for the same period of 2006. This evolution is attributed to the manufacturing production consolidation and to the growth acceleration of the energy sector. This trend is confirmed by the significant increase in raw materials imports and semi-finished products which have reached 26.4% by December 20^th of the current year.

26th December 2007

Speaking at a press conference held in Tunis Monday 24^th December, Mr Taoufik Baccar, Governor of the Tunisian Central Bank (TCB) has reaffirmed the government’s decision targeting the development of the exchange market in order to consolidate the banking sector’s openness on the international financial markets and the strengthening of Tunisia’s position as a regional financial centre.

Mr Baccar has indicated that the decision authorising banks to manage 20% “limit” of their foreign currency assets on the world markets, aims at putting all the necessary instruments at their disposal to give them the flexibility and ability for the appropriation of their investments abroad and to better adapt to the new changes. He also underlined that the provision removes the measures regarding the cancellation of the obligation levelling adopted so far.

The cancellation of the repealed levelling obligation

The Governor has reiterated, that the banks are reminded of the need of exercising caution and to foster prudent management practices in this area, and to respect the criteria notably relative to foreign banks ranking and the adoption of reliable mechanisms in the fields of security and liquidity. This he stressed, will strengthen the positioning of Tunisia’s banks on the international financial markets and open up new performance improving avenues, diversify their products and forge new working relationships with internationally renowned banks.

“This decision will allow banks to exploit a portion of their assets to finance investments in foreign currencies to the benefit of exporting enterprises, provided that the financing does not exceed 50% of the total investment” he added. With respect to the measures regarding the cancellation of the requirement level, Mr Baccar stressed that the measure entitles banks to scrap the need of levelling their currency deposits with the Central Bank.

In respect of the exchange market development and to diversify the recovery instruments for market risks, it has been decided to delegate the exchange listing options to the banks in order to cover the risks associated with commercial and financial transactions.

The monitoring of changes in the global market is a measure designed to encourage banks to assume their responsibilities. The imperativeness of monitoring the changes in global exchange markets, should strengthen the banks’ skills, technical and human performances. The Governor of the (TCB) has emphasised that, the aim of giving more flexibility on the use of mechanisms to hedge against exchange rate risks arising from changing in markets requirements, the maximum period of coverage will be extended further and will exceed the 12 months.

In the same context, Mr Baccar has pointed to the approach already adopted in the domain of external financial liberalisation which constitutes in part the implementation of the government’s program of “Tomorrow’s Tunisia” a modern banking and financial system offering an option towards the full convertibility of the Dinar. He also signals that the approach is based on two major points: (1) To put in place the necessary economic and financial prerequisites for the liberalisation of the external financial system, and (2) the progressive orientation towards full convertibility of the Dinar, on the one hand, and the adoption of operational programs favouring this liberalisation and meet the needs of productive enterprises in particular, on the other.

The conditions for the full convertibility of the Dinar will require a prerequisites period in order to attain the full convertibility stage; this “in short” will require the strengthening of the competitiveness of the national economy, the control of the general equilibrium (in the medium to long-term), through maintaining the current and the balance of payments deficits as well as the budgetary deficit to below the 3% level of Gross Domestic Product GDP, in addition, foreign and public debts must be put under effective scrutiny, more flexible system of exchange rates and the development of the monetary market, emphasised the Governor.

In this context Mr Baccar has reiterated the various stages of the executive program of external financial liberalisation, the implementation of which began in November 2006 and which was based on the strengthening of the liberalisation of current and capital transactions, the development of an accounting system for residents in foreign currency or convertible Dinar and the introduction of a waver system on the infringement of exchange.

He added that the law exonerating exchange infringements aims essentially at stabilising the contentious issues and to mobilise and attract more external funding, the ultimate objective will be the consolidation of the state’s foreign currency reserves in order to utilise it in the financing of the national economy

25th December 2007

24th December 2007

Newly built extentions to the airports of Sfax, Gabes and Djerba were inaugurated successively on Saturday 22^nd December by the President of the Republic.

These new sizable achievements come as a concritisation to the government’s plan for the development of Tunisia’s airport nework, the intensification and adaptation of their services to the changing needs of passenger transportation, inter-regional and international air links as well as the consolidation of the economic and touristic circuit of the country. Achievements which are designed to strengthen airports’ infrastructure. In the same manner, the airports of Tabarka and Gabes, constellate the country with a modern network and is undoubtedly likely to boost the socioeconomics dynamics.

This myriad of airports will be all the more effective and enriched with the completion of the ultramodern international airport of Enfidah which will eventualy be the country’s largest, this will ordain the integral modernisation and upgrading of the Tunisian airports to conform with international standards.

This comes on top of the upgrading and redevelopement of the airport Skanes- Monastir, an ideal platform for serving the national priorities in the first instance the increase in job opportunities, investment stimulation - notably foreign investment -, enterprise creation and above all else export promotion as a vehicle for growth.

Since Tunisia’s inclusion into the process of openess and integration in the global economy, notably the free-trade zones (with the European Union and the signatory countries of the Agadir agreement), airports as well as the road network - being completed or planned - constitute “passerelles” (bridges) with the outside world, facilitating the flow of trade and people. Bridges which, with the urban mega projects (economic and commercial), awarding Tunisia its place and status as a business and a financial hub as well as a major touristic pole thanks to the combined and uniform strength in all sectors and domains.

24th December 2007

Italy’s Prodi and Spain’s Zapatero have rallied yesterday to Nicolas Sarkozy‘s appeal to sign the Mediterranean Union’s advent which will seal the partnership between the two shores of the Mediterranean on an equal footing.

The process of the Mediterranean Union’s creation seems to accelerate and a timetable for its implementation is already set.  After the French tripartite call launch yesterday in Rome, a rendezvous was given to Italy and Spain on July 14^th 2008 in Paris for an inter-Mediterranean conclave expected to result in a common vision around the union “de la Mare Nostrum”.

Nicolas Sarkozy has chosen the strong affectionate symbols of July 14^th, the French Republic Day, to discuss the Mediterranean Union’s fate, which he called for since his accession to the Elysee and to which he seems to be eager, zealous and in a hurry to give it substance.

At first glance the Mediterranean Union is not a novel idea, and the Mediterranean already includes mechanisms for cooperation.  The most famous is the Barcelona process which alias Euro-med and dialogue 5+5.  These instruments are created on the same founding principals: partnership, development, peace and prosperity and are constantly reminding us of their limitations since they were launched, for as long as the realisations are far from the rhetoric and the gap between north and south are as wide.

In what way will the new union change the situation? According to the Rome declaration the union will not replace the existing mechanisms already in place, but “it will complement and give them additional impetus."  It will however, draw its legitimacy from the same values and proclaim membership of the Mediterranean’s same legacy.

23rd December 2007

Just off the coast of the northern Cap Bon peninsula, sandwiched between Menzel Temime and El Haouria, stretches Kelibia’s golden beaches.  Beaches which are taken by storm every summer by Tunisian and foreign tourists alike.

However, the hotel capacity in the order of 866 beds remains insufficient to accommodate the potentially huge number of holiday makers wishing to spend their summer holidays within the area. Conscious of the strengths of the region, many professionals from the tourism sector have shown interest in this zone.  Hence the Tuniso-Italian project of “Kelibia La Blanche” which covers an area of 52 hectares on the El Mansoura site and comprises a tourist resort of 3,000 beds, three star, a residential complex and three animation centres. A first unit of four star and 500 beds is already built and managed by the Italian group Alpitour. A second hotel of 600 beds, also rated four star will be constructed in 2008 and will be operational by 2011. As to the third unit, it will be a giant complex of 500 beds with a thalassotherapy and aesthetics centre.

22nd December 2007

22nd December 2007

According to the daily American newspapers, The New York Times and The International Herald Tribune, Tunisia is classed 3^rd touristic destination world wide for the year 2008.  It is also positioned amongst the 53 destinations most admired around the world.

These two well renown American newspapers underline that, the ranking of Tunisia at the front row is explained by the Tunisian tourism product’s evolution to a top of the range product, this was achieved, according to the newspapers, in part to “the wave of newly built charming hotels, often situated in traditional surroundings, on the coast line of this North African country of beautiful sandy beaches and traditional Medinas, which attracts an ever growing number of laid-back travellers”.  This comes on top of the recent ranking by TripAdvisor of the island of Djerba as the world’s number one emerging destination for 2008.

The evidences show that the Tunisian textile industrialists will never be at the end of their worries. The professionals of ready to wear (jeans, T-shirts…etc), who were promised a “tsunami” following the dismantling of the protectionist accords in 2005, have not done badly up until now.

18th December 2007

The federal German minister of the economy has underlined the intention of all the German parties to make of Tunisia an efficient, respectful and influential partner.

263 German enterprises are currently operational in Tunisia providing employment for approximately 35,000 people.  Bilateral commercial exchanges have realised an estimated 5 billion Euros.

The Tuniso-German economic forum (Nefta), now in its fourth edition was held in the town of Tozeur, south of Tunisia.  This economic manifestation which kicked-off last Sunday and lasted for two days, has permitted German and Tunisian business men and women to better explore the investment opportunities and the potential partnerships forming between them.  Over 200 business men and women as well as company directors from both countries were present at the forum, notably in the high value added economic sectors such as electronics, mechanical, renewable energy and environment.

17th December 2007

The tourism industry suffers from structural problems; overcapacity, feeble diversification of the touristic product, power of price negotiation unfavourable to the operators, narrowness of the marketing strategy and high debts of the hotel enterprises. These were the principle conclusions of the International Agency of Notation Fitch Ratings, in a report which was published on the 12 of December 2007 on the state of the Tunisian tourism industry.

The Agency Fitch Ratings sees these problems as representing a hurdle and constitute brakes to the sector’s recrudescence of growth and the amelioration of its profitability.

In its statement, Fitch Ratings has concluded that indicators such as the reduction of the average stay duration of tourists during the period 2002-2006, the fall of the occupation rates and the progress which is merely perceptible in terms of the registered revenues per tourist, show the problems the Tunisian tourism industry is facing.

17th December 2007

17th December 2007

16th December 2008

A reliable source has confirmed that Tunisia has deposited a dossier to the International Health Organisation the “IHO” to obtain a pre-qualification certification permitting the Institute Pasteur to export the *BCG vaccine, destined to protect against Tuberculosis.

Tunisia’s exports of medicines remain modest.  They represent on average 5 to 7% of total local production.  Constituted principally of generics, they are destined to the countries of the Maghreb, notably Libya and Algeria, several sub-Saharan African countries and the Gulf.

The local production of medicines constituted of generics or of under licence products, cover 47% of Tunisia’s needs.  The remainder comes by way of imports where the monopoly is accorded to the “Pharmacie Centrale” (central pharmacy) which accounts for 80% of the Tunisian medicine market.

* The abbreviation BCG signifies “ Bacille of Calmette and Guerin”

A new financial centre will be built by a Bahraini investment group.  Mr Essam Youssef Jenahi, Chairman of the Gulf Finance House Executive Board, has met up with the President of the Republic at the Presidential Palace of Carthage, Thursday 13^th December to demonstrate the project’s nature and its components.

The project will consist of a high calibre off-shore financial centre, a centre of congress, a trade activity centre, an international school for business as well as tourist and residential complexes.  The main objective of the project will be to make Tunisia a regional centre for financial services entirely devoted to export activities and ensuring high quality training in the business sector and in total conformity with international standards.

7th December 2007

Airbus wishes to relocate the manufacturing of certain parts of its aircrafts to outside of the Euro zone. Tunisia is sited.

Confronted with a spectacular rise in the Euro, the French industrial aeronautical groups one of which is Airbus wish to relocate the manufacturing of certain parts of their aircrafts to countries where the production costs are low.

In an intervention on radio “Europe 1”, Louis Gallois, Airbus’s boss has outlined his wish of pursuing the relocation of the Airbus manufacturing process, because of the significant rise in the value of the Euro vis-à-vis the American Dollar, to Tunisia Morocco and India.

“ We are going to be forced to manufacture parts of our aircrafts, such as doors, some elements of the fuselage and wings outside of Europe”, he explained. The relocation will also concern the sub-contractors and the suppliers “bearing in mind that Airbus’s direct contribution in the aircraft only accounts for 16% the remainder 84% is brought in by outside suppliers.” Lois Gallois has given The example of Latecoere, one of Airbuses major sub-contractors which has already began relocating to Tunisia, Morocco and Brazil. Latecoere is a major partner to all of the big international aircraft manufacturers for fuselage and doors.

The group Dassault Aviation, constructor of business and war planes, has just declared its intention of moving part of its production to Dollar zones and low manufacturing cost countries.

Confronted with a flagrant rise in the Euro and a slump in the Dollar, the European aircraft industry is facing a very tough competition from the Americans, notably Boing verses Airbus, the industry can no longer sustain the absence of profitability. For as long as the company purchases in the Euro zone and sells in Dollar the problem can only be exacerbated further.

7th December 2007

The Aeronautical company Zodiac has announced last Friday that it wishes to realise in the near future new acquisitions, to compensate the impact of the weak dollar on its organic growth and the dilutive effect of the cessation of its marine activities, declared Olivier Zarrouati, Zodiac’s new boss.

The Group which specialises in air safety systems, aircraft systems and cabin interiors, estimates spending 700 million Euros in order to realise a growth in its external operations “without the degradation of its financial structure”, but could go beyond if a “seductive” opportunity presents itself, emphasises Mr Zarrouati.

“We do not feel forced or in a hurry to make an acquisition urgently.  We have made a conscious decision to be prudent and reasonable about our envisaged targets and ratios”, the new boss has added without giving any details of the targets which could be of interest to the company.   Meanwhile the group has declared its wish of covering “in an industrial fashion”, to raise the part of its purchases made in dollar and to develop its industrial base in the countries where labour costs are relatively low, notably in Tunisia and Mexico, where it already has production sites. The group already employs 900 employees in Tunisia, 600 in Mexico, 250 in Brazil and 150 in South Africa.

The on-going big infrastructure projects in Tunisia, have roused the British interest who wish to get their hands in the Tunisian dough. At least in the consulting sphere.

According to the British embassy in Tunis, Graham Hand, the Executive Director of British Expertise, a federation of British professionals in civil engineering and advisory bureaux, will be holding high level meetings with representatives from the government, the “Banque Africaine de Developpement” (BAD) as well as representatives from the private sector.

This high level representative from the British business circles, is in Tunisia prospecting and searching business opportunities and partnerships in the country and elsewhere in the region using “Tunisia as a platform of cooperation between British and Tunisian companies."  Mr Hand will examine the possibilities and ways in which British consultants may be able to make a contribution towards the numerous mega infrastructure projects in Tunisia, a source from the British embassy has declared.

The British guest has signed yesterday an accord of partnership with “L’association Nationale des Bureaux d’Etudes et d’Ingenieurs-Conseils” (ANBEIC) represented by its President Mr Nabil Chaffer.  The accord envisages a confined collaboration between the British and Tunisian companies in the domain of construction and civil engineering in the Maghreb region, Africa and all over the world.  Meanwhile Gary Pampkin, Director of the International Group for the Confederation of British Industry (CBI) is expected in Tunis shortly.

The presence of this high level British representation in Tunisia, intervenes next week’s visit to London by the Tunisian foreign affairs minister, which according to the British ambassador Alan Goulty marks “ a big step forward in consolidating the bilateral relations between Tunisia and the United Kingdom”.

Perhaps worth mentioning that, over 25 British companies are currently operating in Tunisia in diverse sectors.  21 enterprises operate in the energy sector, by virtue of a protocol of bilateral agreement concerning energy.  A second bilateral protocol has been signed between Tunisia and Great Britain aiming at the modernisation of public services.

1st December 2007

The domino effect continues, the Emirati investment groups are falling over each other to get a slice of the Tunisian cake.  The latest project announced, is the touristic complex which will be irrigated in Tunis by the “AL Maabar Group”.

According to Mr Slim Tlatli, principal advisor to the superior commission in charge of mega projects investments, the site of Raoued north of Tunis was chosen for the realisation of the project.

The Al Maabar Group will invest $6.68 billion in the construction of the multiple-role touristic complex in Raoued.  The mega-project will include hotels, foot-bridges, recreational spaces, marinas, commercial and habitation blocks…etc.

The project’s master plan will be ready by the end of November 2007 and an estimated $3.34 billion will go into the venture in its first phase.  A source was quoted as saying that the project could eventually reach the $11 billion mark.

On the shores of the Lake Windermere, Sama Dubai will invest $14 billion in its construction of the new city, “Portrail de la Meditteranee“.  Equally, the Boukhater Group will spend a further $5 billion constructing the “Tunis Sports City” project.

The real estate company Emaar will develop the touristic project “Marina Al Qoussor” at Hergla near Sousse.  The project will cost nearly $2 billion.

The company Dubai investment Group already owns a 35% stake in Tunisie Telecom, while the Abou Dhabi funds of Development is engaged in the financing of divers and various infrastructure projects.

With this level of economic activities involvement, the United Arab Emirates has become the new star of investments generator, replacing Tunisia’s traditional and number one investor Europe, and is now the premiere fund provider in Tunisia.

1st December 2007

A new airline company could see the light of day within the next few months.  Although the company is yet to get the go ahead from the authorities concerned, it is already busy advertising for jobs and has its very own website where you can find a jet with the company’s logo christened Tunisia SBA.

Based in Hammamet, the company is presided by Bajae Taylor.  The Charter Company, SBA owns a fleet of A320s and A321s and envisages the linkage of Tunis to major cities around the world such as New York, Montreal, Johannesburg, Bombay, Shanghai, St Petersburg, Nairobi, Stockholm…  In the early days of its creation, the airliner will operate between Tunis, Lagos, Nice, Manchester, Warsaw, Amsterdam.

1st December 2007

The domino effect continues, the Emirati investment groups are falling over each other to get a slice of the Tunisian cake.  The latest project announced, is the touristic complex which will be irrigated in Tunis by the “AL Maabar Group”.

According to Mr Slim Tlatli, principal advisor to the superior commission in charge of mega projects investments, the site of Raoued north of Tunis was chosen for the realisation of the project.

The Al Maabar Group will invest $6.68 billion in the construction of the multiple-role touristic complex in Raoued.  The mega-project will include hotels, foot-bridges, recreational spaces, marinas, commercial and habitation blocks…etc.

The project’s master plan will be ready by the end of November 2007 and an estimated $3.34 billion will go into the venture in its first phase.  A source was quoted as saying that the project could eventually reach the $11 billion mark.

On the shores of the Lake Windermere, Sama Dubai will invest $14 billion in its construction of the new city, “Portrail de la Meditteranee“.  Equally, the Boukhater Group will spend a further $5 billion constructing the “Tunis Sports City” project.

The real estate company Emaar will develop the touristic project “Marina Al Qoussor” at Hergla near Sousse.  The project will cost nearly $2 billion.

The company Dubai investment Group already owns a 35% stake in Tunisie Telecom, while the Abou Dhabi funds of Development is engaged in the financing of divers and various infrastructure projects.

With this level of economic activities involvement, the United Arab Emirates has become the new star of investments generator, replacing Tunisia’s traditional and number one investor Europe, and is now the premier fund provider in Tunisia.