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THE FINANCIAL SYSTEM
Through the dynamism of its banking system and the stability of its financial
markets, Tunisia has, in only a few years, become a financial center of prime importance. It has been ranked by
foreign experts as the first banking center in North Africa and one of the largest in the Arab World. This reputation
has won Tunisia the confidence of leading banks such as CITIBANK, LINK, and ALUBAF International which, among others,
have set up operations in Tunisia. The banking system is centered around the Central Bank of Tunisia (BCT)
and consists of:
- 14 Deposit Banks
- 8 Development Banks
- 8 Offshore Banks
- 2 Merchant Banks
- 9 Leasing companies
- 2 factoring companies
- 4 offices representing foreign banks
The Tunisian banking system has managed to establish a vast network of representations and agencies. There are
currently 765 banking agencies spread all over the country, averaging one agency per 12,000 inhabitants (about
the same average as in the developed countries).
AGRICULTURE
Tunisia has a total land area of 16.4 million
hectares. The country's arable lands are estimated at five million hectares, and 340,000 hectares of land are irrigated.
The main agricultural products are: olive
oil, citrus fruits, cereals and dates. Tunisia's water resource
potential is 4,800 million cubic meters per year. Nearly 68% of the country's ground water is being tapped.
Agriculture accounts for 13.2% of the GDP (2000) and 9% of exports of
goods, and provides work for 22% of the active population.
Large-scale actions undertaken since 1990 include implementation of a ten-year plan for water mobilization, through
the building of 21 large dams, 203 hillside stream dams, and 1,000 hillside lakes, 1,760 wells and 98 water purification
stations.
State-owned lands are being restructured.
Investments in the sector of agriculture reached 2,784.4 million dinars between 1992 and 1996, and some 5,380 million
dinars in 2001.
INDUSTRY:
Tunisia has an important industrial basis. More than 10,000 manufacturing companies exist
in the country. New growth sectors, such as electronics, automotive components, chemicals and service activities,
are rapidly developing alongside the more traditional ones.
Textiles, shoes and leather are the most important industries, followed by food processing, mechanical, electrical,
building, chemicals and rubber industries.
Over a third of manufacturing operations are located in Tunis, while the remaining are spread between the coastal
areas and the north-western and southern regions.
Approximately 2,000 manufacturing companies have already set up in the country and are either totally or partially
producing for the European, American and African markets among others.
Fifty per cent of these manufacturing companies are joint-ventures or foreign-owned, and have reinforced the transfer
of technology and know-how, contributing to the country's efforts of economic and social development. The service
industries, notably those linked to industry, are also experiencing an important evolution. They contribute to
47% of total investments, 51.3% of GDP growth and 44% of job creations.
AGRICULTURE: :
Since the Change of November 7, 1987, the sector of agriculture and fisheries has been granted a particular attention,
given its crucial role in promoting economic development. This sector, in fact, contributes to achieving economic
balances, providing jobs, enhancing regional development, and ensuring food security which is one of the foundations
of national sovereignty.
The agricultural sector contributes by 13% to the GDP and by 10% to the national export effort. Higher rates were
reached in the years characterized by adequate rainfall. The sector employs 16% of the working population, attracts
11% of the total volume of investments, and provides incomes to 516,000 farmers and 60,000 fishermen.
Just a few months after the Change, the major issues pertaining to this sector, such as the exploitation of state
lands, loan-granting, agricultural investment, agronomy, small-scale farming, agricultural insurance, competitiveness
and professional organizations, were addressed. Moreover, ten-year strategies were developed to ensure an optimum
exploitation of natural resources (water, lands, forests,…), in addition to sector-based strategies aimed at promoting
agricultural production and ensuring food security, particularly as regards vital products.
These policies have largely been welcomed by farmers and all the concerned parties, as they have had a positive
impact on the agricultural sector which has achieved remarkable results in terms of investment, production and
export.
Agricultural investment has, since the Change, been enhanced, thanks to a set of measures taken for that purpose.
Agriculture was, in fact, offered all the advantages provided in the Investment Code issued in 1993. Decisions
related to the granting of incentives were decentralized. A one-stop window was established in the Agricultural
Investment Promotion Agency. Investments carried out in the agricultural sector since the change amount to 14 billion
dinars.
As regards production, record figures have been achieved in many sectors such as cereals, olive oil, milk products
and vegetables. The global volume of production for the sector of agriculture and fisheries, during the 2003-2007
period, reached an average of 3061 million dinars at constant prices (1990), against 2198 million dinars for the
period before the Change, which means an increase by 40%.
The significant increase in production has had a positive impact on the food trade balance. The rate of coverage
of imports by exports increased from 52% in 1983-1987 to 98% in 2004-2007. These positive results have consolidated
the sector's capacity to face the major challenges generated by globalization and the intensifying international
competition, especially in light of the openness of the Tunisian economy on the world.
On the other hand, measures and reforms have been taken to improve the general climate of the agricultural sector,
to increase its productivity and to promote rural areas. Action has also been taken to re-structure state lands,
to regularize real-estate situations, and to review the loan-granting system, investments, and the structure of
agronomic and agricultural training institutions.
To mark the National Agriculture Day (May 12, 2008), a set of presidential decision were announced, aimed at promoting
the agricultural sector, particularly as regards cereals, fodder and cattle breeding.
To further promote the sector, and as regards scientific research and training, action has been taken to consolidate
infrastructure and equipments; recruit and offer training to researchers; and set up seven regional poles for
agricultural development research; establish agricultural research centers; develop a national system for agricultural
research, and direct scientific research toward priority sectors.They are:
- The National Agronomic Research Institute
- The Centre for Rural Engineering Research
- The Arid Areas Institute
- The National Oceanography and Fishery Institute
- The Veterinary Research Institute
- The Olive Institute
- The National Aquaculture Centre
Other policies and reforms were adopted to review the system of agricultural vocational training; establish a structural
link between the systems of education and training; upgrade and restructure agricultural training; and generalize
agricultural vocational training.
Thanks to these policies, the value of investments increased from 39.6 million dinars before 1987 to 192.3 million
dinars during the period of the Change. In addition, the average number of jobs created increased from 1775 to
3962.
As regards the funding of agriculture, the State has adopted a flexible loan-granting policy that takes consideration
the specificity of agricultural activity.
- Mobilization of natural resources
Natural resources, including water, soil, forests and pastures, constitute the basis of agriculture in Tunisia.
National strategies have been implemented to ensure an optimum and sustainable mobilization and exploitation of
water resources, to preserve water and soil, and to promote forests and pastures.
A ten-year plan was established with a view to mobilizing 90% of water resources; thus meeting the increasing needs
in terms of drinking water, irrigation waters and other uses.
Achievements, in this regard, include the construction of 12 large dams, which brings the total number of large
dams to 29, mobilizing additional quantities amounting to 547 million cubic meter per year; 200 hill dams, mobilizing
200 million cubic meters per year; 800 hill lakes; 1120 exploratory wells; and 1018 observation wells.
These achievements have made it possible to mobilize 4200 million cubic meters at the end of 2007, that is, a mobilization
rate of 88% of resources, against 2800 million cubic meters and a mobilization rate of 60% in 1990. An additional
ten-year plan (2002-2011) was established to mobilize 95% of the available water resources by the year 2011.
On the other hand, irrigated areas have increased from 270,000 hectares in 1987 to nearly 405,000 hectares in 2007.
These areas have a crucial socio-economic importance, in that they contribute by 35% to the volume of agricultural
production, 20% in agricultural exports, and 27% of jobs in the farming sector.
Moreover, intensive programs and presidential projects have been established by the state to increase drinking
water supply rates in rural areas in all governorates. In this regard, the number of beneficiaries in rural areas
reached, in 2006, nearly 3.2 millions, compared to 980,000 in 1987. This has increased the drinking water supply
rate in rural areas more than three-fold, to reach 93% in 2007, against 27.2% in 1987.
trade balance
Since 1987, food trade exchanges have known a significant evolution. The average import growth rate amounts to
10.2%, while the average export growth rate amounts to 9.5%. The average of the coverage of food imports by exports
has increased from 52% during the period 1983-87 to 85% during the first years of the Change, and to 98% during
the past five years. In 2007, the value of food exports reached a record figure amounting to 1615.5 million dinars.
This achievement is attributed to the considerable increase in the export of olive oil, dates and sea products
whose incomings have reached record levels since 2001. This, in addition to other products (fruits and vegetables)
that have been included within the export structure.
See Also:
Tunisian Industry Portal
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