NO MARMITE IN TUNISIA

31st January 2008

Officials from the German car manufacturer BMW have recently visited Tunisia and Tunisia’s automobile components manufacturing industries, in addition to Leoni, Autolive, Zodiac & Draxelmayer, all settled in Tunisia and are among their most important suppliers.

During a meeting, the German officials from BMW, have highlighted the investment quality environment in Tunisia as well as the quality of Tunisian products. The German manufacturer who imports some 15 million euros worth of car components from Tunisia, in the framework of the compensation agreement, claimed to have the will and ability to increase this volume up to 40 million euros. At the same time, however, they insisted on the necessity of a better application of the compensation agreements set, it must be remembered, that there is a direct link between the volume of imports from various Tunisian components manufacturers and imported cars quota by the dealers for sale on the Tunisian market. Without giving the impression of challenging the quota system, The German officials from BMW, requested an equal for all application in terms of the link between exports of components and imports of cars of all marks.

Worth pointing out that the German car manufacturer BMW is not the only one to have addressed this issue. During a recent visit to Tunisia, an official from the French group PSA, has made the same request to the Tunisian authorities in charge of the economy.

30th January 2008

Tenders Info, a database which encompasses the investment opportunity offers around the world, describes Tunisia, in a report, as a country which, despite the increasing vulnerability of the situation in the Middle East, maintains friendly ties with Western countries. The qualification favours the Tunisian economic situation and encourages foreign investments.

In the same report, Tenders Info stressed that the diplomatic relations Tuniso-Japanese have never stopped improving, marking their 50^th anniversary in 2006. Japan, according to Tenders Info considers Tunisia to be a major player in its foreign policies towards the Middle East and Africa since it is a country that enjoys economic stability.

Tenders Info is the largest and most comprehensive source of information on international, bids, demand and proposals, contracts, information on future projects, buyers profiles and management consulting, world wide bidding on public procurement…

Tenders Info offers the speed and precision of information for the obtaining of contracts generated by multilateral funding agencies, of federal governments, public utilities, hospitals, schools, ports, etc…

This database is updated daily, nearly 5,000 new possibilities and opportunities are added on every day.

29th January 2008

It has been confirmed, Latecoere is to relocate to Tunisia. The aeronautic equipper Latecoere, Airbus’s principal supplier, is planning to set a new factory in Tunisia creating 1000 jobs. The facility would be in charge of aero-structures production this would mean sections of the fuselage to the benefit of Airbus. The relocation concerns not only Airbus but also the subcontractors and suppliers “since only 16% of the aeroplane is the direct cost of Airbus and 84% is the share of the suppliers.”

According to a reliable source, the management of Latecoere has recently been given the green light from its board of directors to engage in initiating investments in low cost countries. Francois Junca, Latecoere’s chairman of the supervisory board was on a visit to Tunis on January 24^th 2008. Back in November, the No Marmite site published the announcement made By Louis Gallois, Airbus’s boss, on the intentions of his group to relocate to low cost countries which has now been confirmed. He then stressed, that this approach is dictated by the spectacular rise of the euro vis-à-vis the dollar. The European Aeronautic Group is facing tough competition from Boeing and can no longer continue to purchase and manufacture in the euro zone while selling in dollar.

27th January 2008

The French company of insurance for external commerce (Coface) has just recently unveiled its country risk ratings for the year 2008. Tunisia was rated “A4 country under review with positive implications since September 2006.” The explanation of this notation means that Coface found that “Tunisia’s political and economic perspectives could be marked by some frailties. A relative volatility of the business environment is likely to effect the behavioural susceptibility of payments, an average probability which could lead to a failure of payments remaining acceptable.”

Also, according to the French insurer, “growth in Tunisia remained buoyant in 2007, driven by a dynamic household consumption and the good performance of investments in the construction sector, tourism and services (back-office banking and financial off shoring). The 2008 activities should continue to benefit from the progressive diversification of the mixed production and notably the rise of the electro-mechanical industries, which compensates for the gradual loss in the textile industry‘s competitiveness. This positive outlook, supported by a voluntarism industrial policies on the part of the government and a performing business environment, translated by a satisfactory level of cooperate solvency. The Coface index of payments has been orientated towards the downward trend for the past three years.

The favourable economic climate has facilitated the management of public financing. The budget deficit is expected to remain below the rate of 3% of GDP in 2008, despite the increase in government fuel subsidies. As to the trade balance it, however, suffers from the soaring prices of oil and from the competition in key exporting sectors, which can only intensify with the full opening of the Tunisian market to European products. Nevertheless, the current deficit account remains contained thanks to the high level of tourism receipts and private transfers. In this context, the need for direct moderate financing remains largely covered by the very comfortable reserves of direct foreign investments. The level of debt which remains relatively high, continues its downward trend. Although the country enjoys strong political stability, the relatively high unemployment of young graduates feeds an important sentiment of frustration. Despite government’s attempts and commitment to stimulate the “under-employment” of qualified young people, the issue will remain a major problem at least in the short term.

Addressing the weaknesses of the Tunisian economy; weaknesses which explain the “A4 with supervision positive since 2006,” Coface cited “the country’s natural resources are modest and the level of activities remains attributable to exogenous factors such as the European demand, weather, etc…The tourism industry (just like anywhere else) remains exposed and sensitive to the terrorist menace, the growing openness of the country and the end of the Multi-fibre Arrangement in 2005, dictates and requires renewed efforts to diversify and enhance the competitiveness of the industrial offer, the financial sector still suffers from high level of bad debts (19% by the end of 2007) and finally, the unemployment rate of 14% and which affects primarily the young (30% of 15-25years) remains too high.

Coface assigns a rating to each of the 150 countries it monitors; this rating reflects the average risk of short-term non-payment for companies in this country. Seven families are used:

• A1 : Steady political and economic environment, good payment record of companies, very weak default probability (represented by the darkest green colour eg. Australia)
• A2 : Political and economic environment or payment record of companies not as good as A1, default probability being still weak (represented by the lesser dark green than in A1 eg. Portugal)
• A3 : Payment record usually lower than A1 and A2, likely to be modified by adverse political or economic circumstances, probability of a payment default being still low (represented by the lesser dark green than in A2 eg. South Africa)
• A4 : Patchy payment record, likely to be modified by a deteriorating political and economic environment, probability of a default being still acceptable (represented by the light green eg. Tunisia)
• B : Unsteady political and economic environment, usually poor payment record (represented by the yellow colour eg. Turkey)
• C : Very unsteady political and economic environment, frequently bad payment record (represented by the orange colour eg. Libya)
• D : High risk profile of the economic and political environment, very bad payment record (represented by the red colour eg. Iraq).

* Grey colour indicates the unavailability of data.

27th January 2008

Following the privatisation of Attijari Bank and in the framework of the progressive disengagement undertaken by the government, 60% stake of the BTK (Tunisian Kuwaiti Bank) has also been signed over to the benefit of “Societe Financiere OCEOR”, a subsidiary of the French group “Caisse d’Epargne”. Now it appears that the BTE will relinquish its current states and go down the same route taken by the BTK and Attijari.

According to the Tunisian daily newspaper “Le Quotidien”, an international tender was launched, relative to the sale of 78% of the BTE’s capital to the benefit of a private investor. This part of the capital is currently owned jointly by the Tunisian state and the Emirate of Abou Dhabi (50/50). This new privatisation project was triggered by the old bank’s difficult financial situation and its inability to convert from a development bank into a commercial bank.

Founded in 1982, the BTE is a bank of mixed capital estimated to be around the 900 million dinars mark. In the course of the last twenty years, the bank took charge of satisfying the financial needs of Tunisian enterprises in order to realise new investments as its mission. The reforms of the Tunisian banking sector, introduced in 2001, was at the origin of the bank’s transformation from development and business investments into more diverse activities targeting in addition to business, professionals and individuals.

The conversion process has experienced certain difficulties due to the significant competition that the BTE was encountering on the level of the Tunisian market, notably after the entering of foreign groups in the capitals of some local banks.

The Tunisian banking system is currently undergoing major reforms, the sector has for long faced a number of constraints which directly affected the development of private enterprises. In particular commercial banks who suffered (and still are to a great extent) the burden of large non-performing loans NPL’s. Tunisia’s banks are addressing the issue of NPL’s and are working hard to strengthen their portfolio.

A review of the development of the sector during 2006 found that, growth in the sector was the highest of the past eight years, a testimony to the hard work put into tackling these problems by the banks. The industry has also drawn greater advantages from the prevailing favourable macroeconomic environment and from the by now more central place in the banks’ operations granted to them by the notion of the concept of assets quality and risk management.

26th January 2008

25th January 2008

Small to Medium size Enterprises (SMEs) were urged to increasingly resort to the financial market, in order to ensure their sustainability and increase their profitability, this was the recommendation of the participants at the second meeting on the “Industrial Enterprises’ Introduction to the Bourse”, which was held in Tunis January 22^nd 2008, on the initiative of the Council of Financial Markets.

Opening proceedings, Mr Mohamed Rachid Kechiche, the finance minister has underlined the interest accorded by the government in boosting the role of the financial market in financing the national economy and improving the Tunisian enterprise’s competitiveness. He also indicated that the resort of the Tunisian SME to the financial market constitutes an ideal solution to meet its financial needs at low cost, this will allow it to raise more funds, diminish its debt ratio and diversify its funding sources. He stressed that the Bourse’s contribution in financing investments, although rising, remains below the desired goals. The Bourse’s participation in 2007 stood at 8% as compared to 3.6% in 2004. Forecasts for 2009 predict, a rate of around 20%, in line with Government objectives, he emphasised.

The minister has reminded the participants of the incentives accorded to enterprises upon their initial introduction to the Bourse. Among these advantages, is the total exoneration from capital gains tax, to be achieved at the issue of shares listed on the Bourse, the possibility of benefiting from tax incentives for the Group of Companies (holding) or Parent Companies holding more than 75% of the capital of each subsidiary and tax exemption from capital gains on listed securities.

Mr Amara Meftah, Executive Director of the upgrading office, added, that no fewer than 47 Enterprises have already joined the national pilot scheme of assistance with resorting to the financial market (PNAR MF). The objective is to reach 50 listed companies on the financial market (using calling public offering) by 2009. The main criterion for selection of enterprises to join the programme“, added Mr Meftah, is the motivation of the major shareholders and directors to resort to the financial market for alternative funding. Thus all Tunisian SMEs could join the program, even if they were heavily indebted to the banking system and have a low profitability.

The program equally, aims at preparing the Tunisian SMEs to cope with the implications of implementing the Basel II prudential rules and reduce their dependence vis-à-vis the banking system.

Testimonies and experiences of companies on their introduction process to the Bourse were presented on the margins to a third panel organised in the framework of this gathering. Speakers on the panel have emphasised that resorting to the financial market constitutes one of the best guarantees for the survival of the company and a key step in its growth.

23rd January 2008

22nd January 2008

The hotel Amilcar, situated in the Carthage/Sidi Bou Said zone, previously owned by the “Centrale Syndicate”, is now in the hands of French businessman, of Tunisian origin Monsieur Jean Jacques Demeri on a lease hold basis for a period of 27 years renewable with the option of full freehold ownership. According to the terms of his contract, Monsieur Demeri must pay the Centrale Syndicate the some of 1.6 million dinars after the signing of the contract, as well as an annual rent of 1.5 to 2.5 million dinars.

Jean Jacques Demeri has reserved an envelope of 30 million dinars investment to start the refurbishment program which is scheduled to begin before the end of the year with the reopening planned for the second half of 2010. When the hotel is eventually reopened, it will include 30 suites conforming to international standards of luxury, a pool on each floor, apartments, etc…

In all, Amilcar in its new skin, will be a product intended for high quality clientele (the richest of the rich). Monsieur Demeri, who has made a career in the real estate and tourism industries, is engaged in making a destination for the fortunate. Currently he is negotiating with hotel chains of international repute such as the Hilton and the Residence.

22nd January 2008

The World Travel Awards were established in 1993 to recognise and celebrate excellence within the world’s industry of travel and tourism. Now in its 14^th edition, the professionals of travel and tourism as well as travellers are advised on the best destinations on the World Travel Awards, the ultimate prize that a travel and tourism establishment can receive.

Two Tunisian sites were among the nominees in the category “World leading Thermic & Spa Resort”, these were The residence Tunis and Carthage Thalasso.

Among the Arab winning sites are the Pyramids of Giza, in Egypt and Burj Al Arab in the United Arab Emirates rewarded respectively best tourist attraction and best hotel.

The World Travel Awards is the most exhaustive reward program, awarding prizes in all sectors of the industry. Travel agencies in over 200 countries around the world were called upon to vote. The category “World Wide” is divided into eight smaller regional geographical zones.

The best of Tunisia in the category Africa-Tunisia, were elected as follows:

• Renaissance Tunis (Tunisia’s leading Business Hotel)
• Le Royal Hammamet (in the category Tunisia’s Leading Hotel)
• The Residence Tunis (in the category Tunisia’s Leading Resort and Tunisia’s Leading Spa Resort)
• Presidential Villa, Hasdrubal Thalassia & Spa Yasmine Hammamet (in the category Presidential Villa)

22nd January 2008

16 Sicilian enterprises and numerous Tunisian companies are holding a business gathering under the banner “Tunisia Sicily Partnership Project”. The meeting has started on January 21^st 2008 and is set to continue until the 24^th of the same month.

The event is held in the framework of the 8^th Operational Mission on the environment and tourism sector. The tourism which the Sicilians intend to develop with their Tunisian counterparts, covers the hotels of charm and marinas. The sectors concerned are the management of touristic hotels facilities and marinas, production of fishing boats, with engines, pleasure boats as well as their maintenance and hire, the design and marketing of thermic and out of circuit journeys tourist packages, kitchen equipment manufacturing and management consulting services for enterprises wishing to internationalise.

The Sicilians are looking for partners with a view to develop the Tunisia-Sicily tourism, through cooperation projects, commercial, industrial and technological in order to create circuits for winemaking and gastronomy, tourism networks, notably for marine products, pleasure and invest in the management of hotel facilities and the relocation of certain touristic activities. The gathering promises to be fruitful for both sides particularly in the tourism sector of the two countries.

21st January 2008 

20th January 2008

The Tunis Bourse (Bourse des Valeurs Mobiliere de Tunis) appears to be attracting more and more Tunisian enterprises. The latest to express interest in joining, is non other than “Medis” which is studying an eventual introduction to the Bourse.

Tuninvest SICAR, a major shareholder of Medis, has announced that it is currently exploring an eventual introduction to the Bourse in the course of the first six months of the year. Medis has just awarded in this context, a mandate to two Bourse specialists “ Cofib Capital” and “Tunisie Valeur” in order to study the modality for the proposed introduction.

Les Laboratoires des Medicaments Steriles “Medis”, is one of the major companies operating in the pharmaceutical sector in Tunisia, with its headquarters based in the Nabeul governorate.

Medis makes about 90 types of medicines principally designated for export. The company is well placed on the local market as well as foreign ones, notably in Algeria where it has recently implanted itself, through the 50% capital acquisition of the Algerian pharmaceutical company “Inpha”. This acquisition confirms the strategy that the company has set itself, a strategy which has for objective the repositioning on the Maghrebian market. It is based on estimated growth of more than 10% by 2010 on the Algerian market where the local production covers only 25% of the national consumption.

On the level of the Tunisian financial market, the introduction of Medis to the Bourse can only strengthen the pharmaceutical sector’s presence. It is important to note that the sector encompasses some 25 production units with the most important being “ La Societe des Industries Pharmaceutiques de la Tunisie” (SIPHAT) listed for several years on the BVMT.

20th January 2008

20th January 2008

18th January 2008

The Tunisian trade delegation which was recently in Kuwait has conducted several meetings with Kuwaiti investors in order to persuade them to invest more in Tunisia. As part of the charm offensive, the new industrial park at Enfidha was presented to the Kuwaitis. The level of Kuwaiti investments have been in relative decline by comparison to the new Gulf investments. Nevertheless, it must be said that, Kuwait has heavily invested in the capital over the years in various domains including real estate.

In a conference held at the Kuwaiti Chamber of Commerce and Industry on January 16^th 2008, Isnardo Carta the President and Director General of the Industrial Develepment of Enfidha-Tunisia (IDET) has declared that, “Tunisia has signed a free trade agreement with the European Union which has come into force on January 1^st 2008.” Various new investment projects are underway in Tunisia. “There are a large number of projects taking place in Tunisia, this project in particular, is an immense project orientated and based on the industry. It is a new domain for Tunisia and we are expecting that the Enfidha park will become the most important industrial park around the Mediterranean” emphasises Mr Carta.

17th January 2008

16th January 2008

The 2007 figures which show the identity break down of the tourists who have visited the country has just been published. Other than France, as expected the traditional European market has fallen. By contrast new emergent markets are developing, leading the pack are the Russians, the Czechs and the Polish. In the course of the last 12 months of the elapsed year, Tunisia hosted 6761,906 foreign visitors a rise of 3.2% on last year.

Out of the 6.7 million tourists who have visited the country in 2007, the neighbouring markets (Algeria and Libya) accounted for 2.4 million.

The exercise was marked by a certain mutation of tourists influx coming from the European markets in which the first ten are shown below in a descending order :

• France, 1335,409 visitors + 8.2% (compared to 2006)
• Germany, 514,040 visitors - 6.1%
• Italy, 444,474 visitors - 4.3%
• Great Britain, 312,773 visitors - 10.8%
• Belgium, 167,443 visitors + 1.9%
• Czech Republic, 153,356 visitors - 0.4%
• Poland, 148,728 visitors + 9.8%
• Russia, 147,728 visitors + 26%
• Switzerland, 106,156 visitors + 2.9%
• Scandinavia, 103,417 visitors + 24.9%

Overall, the European market has registered an increase of 2.3%. With 4048,429 visitors it represents 60% of the total Tunisian tourism market. Ironically, the market ranked just before last is the market showing the biggest growth rate. The Chinese market has increased by 31% compared to 2006. Although still rooted to the bottom of the table with the modest number of 2801 visitors, the Chinese market is potentially a wonderful opportunity to exploit due to its size and importance. The combination of modest visitor numbers and the impressive growth rate leaves an “interesting” scope for improvement. The last place goes to the Brazilians, only 2704 of them have visited Tunisia in 2007.

15th January 2008

In its annual report “Emerging Tunisia 2007," the British economic foundation, the Oxford Business Group has predicted a continuous economic growth for Tunisia.

According to the analysts, the major events in 2007 were,

• the growth in investments coming from the Gulf states, the launch of the XI plan, the creation of a stock market for the Small to Medium size Enterprises (SME) and the construction of a new airport and an industrial zone at Enfidha in addition 
• the World Peace Index puts Tunisia top of the list of African countries.

The analysts from the Oxford Business Group, found that the elapsing year was marked by important events from Tunisia’s perspective: The growth of investments coming from the oil rich states of the Gulf, the launch of a new economic plan, the creation of a stock market specifically dedicated to small and medium size enterprises and the construction of a new airport and industrial zone at Enfidha. According to the preliminary estimates established by the Tunisian Central Bank, highlights the report: “The rate of economic growth is estimated to be 6.3% for 2007. This development is attributable to the consolidation of the pace of activity in services and manufacturing industries. This trend is confirmed by the significant increase in exports which have risen by 24.2% thanks to the impetus provided by manufactured goods. The document has indicated that Gulf investors have largely contributed to the development of investments…These investment funds have encouraged the Tunisian government to launch new projects for the next coming five years at a total cost estimated to be between 45 and 60 billion dinars."

The report regards the realisation of the seventh international airport at Enfidha, situated 75 km south of Tunis, to be the most ambitious project. The report affirms that “the airport will have an initial capacity of 5 to 7 million passengers, with the possibility of doubling its size and will ensure flights to 200 destinations”.  The airport will be the main gateway to the regions of Sousse, Hammamet and Nabeul which attract a big number of tourists and should generate 67 million dollar in revenues annually in the course of the first few years. The analysts were equally interested in Enfidha town “it is set to become an industrial and commercial hub, a strategy which is in tune with the creation of the new airport. In addition, the government has committed itself to invest 380 million dollars in the first phase of the development of Enfidha’s new port making it the country’s sixth largest port."

15th January 2008

Inflation (see foot note)

On 31^st December 2007, inflation stood at 3.1%. A rate which is significantly lower than the 4.5% recorded in 2006, yet this new rate represents an increase of over 2% on that registered in 2005. It appears that the Tunisian Central Bank (TCB) which has made inflation its principal goal, has won its bet.

By far the biggest inflation registered was in the transport sector, which has increased by 4.7% (the 6% inflation recorded in energy prices would have undoubtedly impacted this sector). Foods, according to the official figures, have registered an inflation rate of 2.8%. Housing (rent) has gone up by 2.1%, clothing on the whole and in detail of different products (including shoes, clothing for men, women and children) have only risen by 0.4%. Education and child care costs have increased by 2.2%, by contrast, the telecommunication sector has recorded a disinflation of 6%. In general, however, inflation has fluctuated throughout the year, from month to month between the 2.5% and 3%.

Total indebtedness (see foot note)

By standing at 51.203 million dinars at the end of 2006, total indebtedness has seen a deceleration in its rhythm of progression (4.4% against 6% the previous year). This slowdown has also effected the state’s indebtedness just the same as other non-financial economic agents.

The outstanding amounts of domestic debts in 2006 stood at 33.741million dinars, registering a rise of 9.1% as compared to 5.7% the previous year, due to the stiffness as well as the competition provided by the financial system (9.5% against 6.3%) as well as the financing through the intermediary capital markets (6.4% against 1.3%)

13th January 2008

13th January 2008

To mark its 30^th anniversary celebrations, Leoni’s Director General in Tunisia, Mohamed Larbi-Rouis, has declared that the group has set itself the objective of establishing a mega site in Tunisia which will account for the creation of 8,000 to 10,000 jobs on the horizon of 2011. The project will consist of enlarging the group’s activities on the Tunisian territory by launching two additional production sites with a capacity similar to the existing site in the north of the country.

Leoni Tunisia is a group specialising in the manufacturing of cable harnesses destined for the automobile industry. Its customers include the famous car marks Daimler Chrysler (Smart, Class A, Vito “NCV2”, and Mc Laren), Volkswagen “VW-Passat” and Audi “A6”

The company is currently employing 4,500 people and have an annual turnover of 2 million Euros. It is based in Thrayet (Sousse Governorate) over an area covering 11,000 squared metres. Leoni’s headquarters is situated in Nuremberg Germany and has a presence in 23 countries with over 60 production sites world-wide achieving 100 million Euros turnover annually. Speaking to journalists, Mr Uwe Lamann the groups President has announced that his company is preparing for the acquisition of the French group “Valeo” in Tunisia.

Responding to Tunisian journalists questions on technology transfer, Mohamed Larbi-Rouis, explained that Leoni Tunisia has made unsuccessful attempts with a number of Tunisian universities as well as the Agency for the Promotion of Industry (API) in order to benefit Tunisian graduates form the company’s senior engineers expertise. These structures, academic and supporters of industry were apparently disinterested according to his statement.

10th January 2008

10th January 2008

7th January 2008

A project of a multidisciplinary private hospital is to be constructed in Tunisia, this comes as part of the Tunisian-Japanese cooperation.

The first of its kind in Africa and the Arab world, this new project, will be realised in the context of joint investment to which the giant Nippon hospital group “Tokushukai” along with other Tunisian and international partners will contribute, disclosed the representative of the company Tokushukai-Tunisia to the “Agence Tunis Afrique Presse”.

“For it to be chosen from the whole of Africa and the Arab world by the group -Tokushukai- which ranks first in Japan and third globally in terms of the number of private medical institutions, shows the confidence of this type of private group, which is very influential on the international scene in the Tunisian expertise and competences in the domain of scientific medical”, added the representative of the group.

In effect, the project which is in the final technical studies stages is planned to be accomplished in the coming year. A project which is of strategic importance as well as a promoting factor in the domain of medical export services and will certainly be a contributor to Tunisia’s endeavour in this field.

The cost of the project will be around the 65 million dinars and will be financed by international financial institutions. It will consist of the construction of a 400 bed hospital at the northern gate of the capital where it will house ultra sophisticated medical and fitness equipment and will cover all of the medical services.

The project which will generate nearly 750 jobs, including 80 doctors and 500 executive paramedics, will allow for the transfer of Japanese know-how in the hospital management field towards Tunisia through the phase of training and coaching by Japanese experts from the Tokushukai group.

In addition to the Tunisians who will benefit from the medical and sanitary allowances of this private medical facility, the establishment’s ambition is to receive health tourists and foreign patients notably from European and Arab countries. This private hospital will the second of its kind after the one realised in Bulgaria by the Tokushukai group.

7th January 2008

7th January 2008

5th January 2008

5th January 2008

The influx of foreign investments orientated towards Tunisia was valued at 1334.7 million dinars during the first ten months of 2007. By comparison with 2006, these inflows have registered an increase of 33.8%. This evolution is based mainly on the rise in Direct Foreign Investment (DFI) inflows which stood at 1259 million dinars during the first ten months of the current year, against 904 million dinars for the same period in 2006, a growth rate of 39.3%. The Portfolio Investments inflows, remain modest in relation to the total foreign investments, they have effectively diminished by 19.3% during the same period.

Excluding privatisation and compared to the first ten months of the previous year, the sectoral analysis of DFI shows the concentration of these inflows in the sectors of energy and that of manufacturing industries. Effectively, energy continues to occupy a predominant place in the total DFI, its share stood at 59.5% of the recorded inflows in 2007. However, the realised investments in the sector correspond solely to the expansion of the projects. They are often not accompanied by job creation.

The sectoral breakdown reveals that services as well as other sectors have significantly attracted DFI during the first ten months of 2007 reaching 165.2 million dinars against 38.4 million dinars a year ago.

Direct Foreign Investment in the tourism and real estate sector remained timid during the first five months of 2007. Indeed the investment inflows in the sector were 21.2 million dinars as compared to 18.3 million dinars for the same period last year, a progression of 15.8%.

In the manufacturing sector, DFI still remains at a moderate level, In effect the investment inflows in the sector were valued at 323 million dinars in the first ten months of 2007 compared with 317.3 million a year ago, a growth rate of 1.8% helping creating more than 12,000 employment posts. In terms of sub-sector analyses they reveal that external investments are essentially concentrated in the EMI, TCL and foods, the inflow of DFI in these three sectors are 95.7 million dinars, 44.8 million dinars and 36.2 million dinars respectively in the course of the first ten months of 2007.

5th January 2008

The company of Ahmed Bouzguenda has recently started the construction works on the residential part of the Tunis sports city project. On the level of Arab investments, the Boukhater’s is the second most important investment after that of Sama Dubai.

Boukhater with which the negotiations for the agreement signing are progressing normally, appear to have already bought the 250 hectares on which the project will be erected from the SPLT (Societe de Promotion du lac de Tunis)

The Group has also signed contacts with a number of foreign parties who will manage certain components of the new sports city. These contracts include a contract with Olympique de Marseille for the management of the Football Academy and/or a football training centre, another with the Orthopaedic Clinic of Bordeaux and a third with the designer of the golf course which will also be built on the site.

Viewed as Tunisia’s principal bastion for citrus fruit production to the tune of 85% of the total national produce, the Cap-Bon region is celebrating these days the bumper rise in orange production which has reached the 230,000 tonnes this season, of all varieties.

The CRDA of Nabeul has confirmed that this year’s produce of 230,000 tonnes is a new record against last year’s 181,000 tonnes, a rise in the order of 20%. (Worth mentioning, that the total produce on the national scale of citrus fruit is estimated to be in the region of 265,000 tonnes.)

Notably, the “Maltese” variety which in effect constitutes Tunisia’s citrus fruit “charm ambassador”, the estimations for the present season is of 82,000 tonnes, registering a rise of more than 25% on the previous year.  Moreover, this variety remains the best exported, the quantity which finds its way to overseas notably to the 18 national commercial agents in France, dotted around the Marseille, Nice and Paris areas has also risen to 25,000 tonnes.

It should be noted that this abundance in production which as mentioned constitutes a record, was the result of two principal factors namely a good rainfall during the months of December, January, April and June of last year and a rise in temperatures during the month of February.

3rd January 2008

The Tunisian company Societe de Conseil et d’Ingenierie en Technologie Avancee, “Consulting and Engineering in advanced Technology” a subsidiary of Datavance, should become the technical support of its parent company in order to optimise the rise in customers’ demand. “We realize that Tunisians have a good technical training. In general, they qualify from engineering schools in tune with market realities”, explains Eric Rozanes the chairman and co-founder of Datavance. Thirty technicians have already been recruited to the off-shore location.

The subsidiary which was inaugurated in late November, provides “ extraterritorial benefits in the service offer framework. The engineers hired will make no prospection (canvassing) so to speak. Their work will essentially be articulated around the technical development of imminent projects.”

Ultimately and in due course, the customer could be passed on to the Tunisian recruits, in the context of synergies with France, in order to ensure the new projects’ interface.

1st January 2008 

The Bahraini group Gulf Finance House (GFH) which has announced just recently a plan for the establishment of an offshore financial centre in Tunis, The Tunis Financial Harbour (TFH), at a cost approaching the $3billion, has confirmed in an interview with its chairman Mr Essam Youssef Jenahi, that it hopes to start the building works (somewhere within theTunis bay) on its project mid February 2008 and accomplish it by 2010 despite the fact that nothing has been signed with the Tunisian government and no definite site has yet been chosen for the implantation of the project.

In spite of this, the group’s chairman seems adamant that everything will be in position for the accomplishment of the project within the time allocated to it. He gives the example of similar projects already realised elsewhere by the group such as the Bahrain Financial Harbour in Bahrain and others in Qatar, Jordan, India and Morocco. He insists that, “all of the group’s projects are based on a very defined concept and have for objective the strengthening of the guidelines and orientations of each country we invest in“. He adds that “In the case of Tunisia, there is in particular the political stability, the right environment for business and investment, economic openness and the competences potentialities which already exist, factors which have incited us to choose to invest in Tunisia“.

Asked as to whether the Tunis Financial Harbour (TFH) venture will be a real estate project or more than that? And what financial added value it will bring to the country? Mr Jenahi replied, that “in addition to the $3billion dollar which will go into the project’s construction, there will at least be a further $2 billion investments by banks and insurance companies which will accommodate the spaces that will be constructed. The project will not simply be a real estate project, but a service and financial project which will help create 16,000 jobs mainly in the financial sector. We should not overlook the fact that the necessary infrastructure covering an area of 4 square kilometres, will be built by the private sector lightening the burden on government spending“.

The chairman confirmed, that the legal and legislative aspects of the project are currently being studied by the Tunisian Government. He added that this financial harbour, should be realised as a specialised economic zone and hence its structures must obey and be compatible with the international financial institutions which will be attracted to an independent special legislations and regulations as well as an ordinary legal framework, just like the one which exists notably in Singapore and Hong Kong .

The dealings that will be curried out in the proposed (TFH) Bourse, will be the same as what already exists in other exchanges, such as for example, the London Metal Exchange in London where contracts are done and undone, this could be also be curried out in the TFH and could include metals, marketable goods or cross-listing actions.

On the subject of the real estate, Mr Jenahi was asked as to whether there will be a recourse for Tunisian companies in the sector, to participate in the project’s realisation, or will it be assigned entirely to foreign companies? The Chairman reply was unambiguous: “ Our policy is to always help the national economies of the countries in which we invest. The Gulf Finance House has always called upon the national competences in addition to international partnerships. But we always give priority to domestic enterprises.”