Tunisia emerges as an increasingly important partner for Spain

The North African country has established itself as one of the most competitive economies in the Arab world and the African continent. Since its transition to democracy it has implemented various reforms aimed at creating a business-friendly environment, which is also favoured by its enviable geographical position between Europe, the Middle East and Africa. Relations between Tunisia and Spain have progressed in recent years, but much potential remains to be explored. For this reason, the Madrid Chamber of Commerce and the Foreign Investment Promotion Agency (FIPA) have organised a conference in collaboration with the Secretariat of State for Trade, the Single Window for Internationalisation, Casa Árabe, the company Kuehnel+Nagel and Enterprise Europe Network.

In 2019, Spanish exports were 789 million euros and imports 605 million. Trade relations are fluid and the conference addressed various issues of interest to Spanish companies, including the internationalisation of SMEs. In terms of employment, investment by Spanish companies in Tunisia has generated 6 792 jobs. Spain is currently the fourth largest economic investor in the EU, still some way behind Germany, France and Italy. It is therefore essential to publicise investment opportunities and offer new guarantees for this.

As the President of the Chamber of Commerce, Industry and Services of Madrid, Ángel Asensio, has pointed out, Tunisia is strategically very well positioned, it has good economic growth and it is betting on talent to employ it in companies with the aim of making them more competitive. Nor should we forget that Tunisia can be a gateway to other African countries, so that business opportunities can be substantially expanded in the future.

The Spanish ambassador to Tunisia, Guillermo Ardizone García, points out that due to historical inertia and geographical reasons, Tunisian operators tend to look to other countries. Despite this, Tunisia and Spain enjoy good relations and our country has a good reputation. The ambassador assures that there is good potential, but it is not known and activities such as this type of conference help to progress along this path.

Spain has similarities with the Maghreb country in terms of the importance of tourism and the hard blow the pandemic has dealt this sector. Sharing experiences in this field can be fruitful for both countries.

For its part, the Hispano-Tunisian Chamber of Commerce, which was recently set up in 2017, has been doing important work and has perfectly qualified personnel with knowledge of the country and the sectors in which they operate. It also has a close relationship with the Spanish Embassy. Its president, Mohsen Boujbal, wanted to highlight the personalised attention given to investors, accompanying them throughout the process and advising on legal matters, for example, and advertising Spanish goods and services. For their part, the Embassy and the commercial office are also available to Spanish companies whenever they wish.

Although not only Spain, the conference also highlighted the European Union's interest in continuing to strengthen ties, especially with regard to bringing value chains closer together. This is a strategic element for the EU in which a reliable partner such as Tunisia can be very useful.

Ibrahim Medini, FIPA Tunisia Director for Spain and Portugal, explained how Tunisian legislation increasingly favours foreign investment. The law of 1 April 2017 gives total freedom to foreign participation in the capital of offshore companies, allows the free transfer of funds (profits, dividends and assets) abroad, reduces bureaucracy and allows free access to ownership of non-agricultural land for investment projects.

In the Doing Business 2020 ranking, Tunisia has advanced from 63rd to 19th place in the "starting your business" category, it is the first country in North Africa in terms of attracting talent according to the Global Talent Competitiveness Index, the first in entrepreneurial ecosystem according to the Global Entrepreneurship Index, and in innovation according to the Bloomberg Innovation Index.

Particularly attractive is the northeast region in which the city of Sfax is located. Ikram Makni, president of the Sfax Tunisia Business Centre, highlights the work that the organisation does to especially attract young entrepreneurs, who are helped throughout the process to start their project in a region that is economically very important at a national level.

The most attractive sectors for future investment are: renewable energy, especially photovoltaic, since Tunisia has 300 days of sunshine a year; waste treatment, in which Spain has experience; cultural tourism; infrastructures related to telecommunications, roads and the railway sector; the agri-food sector; the pharmaceutical sector; and the financial sector. All of these represent new investment opportunities that Spanish companies should not miss out on.

The Secretariat of State for Trade is facilitating the internationalisation of Spanish SMEs through a credit line programme, mainly in euros and dollars. It is beneficial for both parties in that it favours the modernisation of the Tunisian economy and the internationalisation of Spanish small and medium-sized enterprises. Factors such as political and social stability, security and the reforms implemented in recent years have made Tunisia an attractive destination for investment.

The credit line offers more advantageous conditions than those available on the market and speeds up the necessary procedures. It focuses on sectors such as ICTs, capital goods, infrastructure, energy, water projects and agri-food machinery, and excludes health, education and police and defence equipment. It covers 100% of Spanish goods and services exported to Tunisian or Spanish-Tunisian companies, plus local expenses and foreign material for a maximum of 30% of the value of the exported goods and services.