Tunisia and the United States have several bilateral agreements relevant for U.S. companies, including a Convention for the Avoidance of Double Taxation (1985), a Bilateral Investment Treaty (1990), and a Trade and Investment Framework Agreement (TIFA) (2002). Despite bureaucratic challenges, American firms have competed successfully for Tunisian government contracts.
Excellent opportunities exist for potential investors, especially in sectors that would benefit from American technology, such as hydrocarbons, power generation, renewable energy (including green hydrogen), aeronautics, transportation, healthcare, safety and security, and information and communications technologies. In the private sector, noteworthy commercial prospects may be identified in more labor-intensive, offshore (export-oriented) manufacturing industries such as textiles and apparel, agribusiness, aerospace, electronics, and mechanical and electrical equipment.
Due to its moderate Mediterranean climate, beautiful beaches, and outstanding antiquities, the government provides robust incentives for investments in cultural and historical tours, golf packages, desert excursions, and medical tourism. Medical tourism remains small but demonstrates increasing potential to attract visitors from neighboring countries, Europe, and sub-Saharan Africa. Opportunities exist in refurbishing Tunisia’s tourism infrastructure and niche travel in underdeveloped in areas away from Tunisia’s coastal cities.
Opportunities exist for U.S. agricultural producers as well. Bulk commodities such as wheat are subject to variable demand as a result of domestic production fluctuations and international market conditions. Corn, soybeans, and some intermediate products, such as soybean meal, vegetable oils, and distillers’ grains, may offer more stable and consistent long-term prospects. U.S. market share of Tunisia’s overall agricultural imports currently hovers around 7%. A sizable market exists for agricultural equipment, including tractors, harvesters, and irrigation systems. A government decision to outsource grain storage has spurred demand for grain silos and elevators.
U.S. medical equipment, products, and pharmaceuticals may benefit from government programs to improve healthcare services, increase capacity, upgrade the country’s hospitals, and increase the number of private clinics.
The government views franchising as a catalyst for small and medium enterprise development and employment generation. Excluding food and beverage, real estate, and advertising franchises, foreign franchises are automatically allowed to operate and are treated like any other foreign investment in the onshore sector. Franchises in excluded sectors may operate with additional authorization from the government. The Ministry of Trade and Export Development has yet to deny a food franchise application.
Tunisia aims to generate 35% of its power from renewable energy by 2030. The adoption in 2015 of a renewable energy law and the publication of its implementing decrees in 2017 encouraged private businesses to generate and use clean energy. Since 2018, the Tunisian government has awarded to private companies more than 1,000 MW of solar projects. However, most of these projects are still in the development phase.
Tunisia offers some investment opportunities in PPP projects. U.S. companies are encouraged to track potential PPP projects of interest by visiting https://igppp.tn/en.