Tunisia has set its sights on attracting around TND 4 billion in foreign investments per year over the 2026–2030 period, according to the country’s Foreign Investment Promotion Agency (FIPA). The objective is to raise the national investment rate from the current 16% to between 24% and 25%.
FIPA’s central director, Hatem Soussi, stressed that achieving this target will require accelerated reforms, a stronger role for public investment, and a renewed focus on digitalization and infrastructure development. He also called for Tunisian companies to expand internationally, integrate into global value chains, and increase their presence in the stock market to boost Tunisia’s appeal.
Early results for 2025 suggest progress toward these goals. In the first half of the year, Tunisia attracted TND 1.65 billion in foreign investments—nearly half the annual target of TND 3.4 billion—marking a 20.8% increase compared to the same period in 2024.
Foreign direct investment (FDI) rose by 21.3% to TND 1.64 billion, while portfolio investments declined by 28.3% to TND 9.7 million, mainly due to the absence of new stock market listings.
The industrial sector, particularly manufacturing, remained the top FDI destination, with TND 1.03 billion invested—an increase of nearly TND 200 million—driven by demand for automotive and aerospace components. Foreign companies have already requested an expansion of the Mghira industrial zone in Ben Arous. The textile and clothing sector is also gradually reviving, focusing on small, high-value production close to European markets.
Energy investment surged by nearly 60% to TND 398 million, fueled by renewable energy projects in solar and wind. FDI distribution in the first half of 2025 shows manufacturing leading with 62.9%, followed by energy (24.3%), services (11.6%) and agriculture (1.2%).
Soussi expressed confidence that investment flows will accelerate in the second half of 2025 to meet annual targets. However, he noted that Tunisia must move beyond the onshore-offshore model that once fueled growth in the 1970s and 1980s but is now seen as a drag on competitiveness.
According to the World Bank, the dual economic system has created distortions and imposed high costs on the economy, despite the offshore regime’s success in attracting foreign firms and hard currency. More than 70 studies on the Tunisian Investment Incentives Code have highlighted these challenges, underscoring the urgency of reforms to sustain Tunisia’s future growth.
TunisianMonitorOnline (Editorial Staff)
