AG TIC ANG.indd 1AG TIC ANG.indd 1 02/06/2020 12:3802/06/2020 12:38
ICT SECTOR
2Tunisia benefits from
a key geographic proximity to
European countries and has signed free
trade agreements with the markets of
Sub-Saharan Africa, the Middle East and the European Union
A CENTRAL POSITION IN THE EUROMED AREA
n Countries with which Tunisia has signed a free trade agreement and / or a trade agreement
Source: World bank, Eurostat, CBT exchange rate on 24/ 07/19 1 Tunisian Dinar = 0,3119 €, INS, Deloitte analytics, World Investment Report 2019
GAFTA
Main free trade / trade agreements ratified by Tunisia
Population (2018)
11,55 millions
Capital Tunis
(1,07 m inhabitants)
Surface Area
163 610 km2
Economic openness rate
87,7% (en 2017)
Time zone
GMT + 1hour
Free trade agreements
UE, COMESA, UMA, GAFTA
Stock of inward FDI in GDP % - 2018
Tuni
sia
Liby
a
Mar
occo
Nor
th A
fric
a
Afr
ica
67,1
%
42,4
%
54,3
%
42,7
%
38,6
%
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3Tunisia’s growth rate rose from 1.5% in 2015 to 2.5% in 2018 - According to Government estimates, this trend is likely to continue,
reaching 2.7% in 2020
KEY FIGURES
Source: African Development Bank, INS, World Bank, IMF: World Economic Outlook (WEO) Database, April 2019, World Investment Report 2019 / 2018e: GDP 2018 according to the CBT estimates
GDP growth rate(2018)
2,5%
FDI inward stock (2018)
26 792 m $
GDP / capita (PPA $, 2018)
12 483 $
# of FDI projects announced (destination Tunisia 2018)
554
# of FDI projects announced (source Tunisia 2018)
93
GDP ($, 2018)
39,86 m $
Flow of foreign direct investment (2018)
1 036 m $
CPI inflation (2018)
7,3%
Evolution of GPD in billion TND (2008-2018)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
e
55,
3
58,
7
63,
1
64,
5
70,
4
75,
1
80,
8
84,
7
89,
8
96,
3
105
,4
CAGR +6,7 %
4,2%
3,0% 3,5%
-1,9
%
4,0%
2,9%
3,0%
1,2%
1,1% 2,
0%
2,5%
1,4% 2,
7%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020 s
AG TIC ANG.indd 3AG TIC ANG.indd 3 02/06/2020 12:3802/06/2020 12:38
4Tunisia has a
competitive edge compared
to competing destinations on the
basis of the most relevant international
rankings
TUNISIA IN THE INTERNATIONAL RANKINGS
Source: Data World bank 2018
Source: Global innovation index 2018
Source: Doing Business 2020
Source: Data World bank 2018
Source : Global Information Technology Report | Facilité d’adoption des technologies émergentes et de la
transformation digitale = 7 étant le meilleur
Source: Global competitiveness report 2019
High-technology exports in pourcentage of manufactured exports
« Global innovation 2018 » Score
Doing Business Score
Number of researchers in R&D per million inhabitant
Networked readiness index
Global competitiveness index
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ce
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25,9
0
19,6
0
16,9
0
10,6
0
10,6
0
10,1
0
10,1
0
7,40
7,20
5,30
3,80
2,30
0,90
0,60
54,2
49,4
47,9
44,6
44,5
42 41,3
40,3
36,9
36,8
32,8
31,6
27,5
24
77,9
76,8
76,8
76,5
76,4
76,3
75,6
73,4
73,4
73,3
72 68,7
60,1
48,6
4441
4291
3690
2924
2873
2795
2528
2131
1965
1386
1069
890
821
669
5,3
4,3
4,8
4,7
4,5
4,4
4,4
4,4
4,1
4,1
3,9
3,9
3,7
3,2
78,8
75,3
70,9
70,4
68,9
66,8
65,1
64,9
64,4
62,1
60 56,4
56,3
54,5
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5The ICT sector is in continuous growth
and had contributed almost 7.5% of the
GDP in 201 - the ICT ecosystem consists of more than 1,800 companies spread
mainly over the Greater Tunis area
and the coastal cities and employs nearly
80,000 people
TIC TERRITORIAL NETWORK OF ICT COMPANIES
Development of the sector’s employability
67%
28%Sahel region
28% of the companies
Grand Tunis area67% of the companies
2013
2014
2015
2016
2017
66 5
33
68 3
07
71 1
64
74 8
84
79 2
77
CAGR 4,5%
• The ICT sector contributes to more than 7.5% of the national GDP and has recorded an annual growth rate of more than 7% over the period 2014 – 2017.
• Over 1,800 companies operate in the sector, 12% of which have 100% foreign capitalization.
52,9 % Telecommunication
0,5 % IT consulting
0,4 % Data processing, data hosting and related activities
34,8 % Other IT activities
8,6 % Call centers activities
2,8 % Computer programming
AG TIC ANG.indd 5AG TIC ANG.indd 5 02/06/2020 12:3802/06/2020 12:38
6Several «success
stories» and international
champions have emerged in recent
years, and have contributed to Tunisia
a destination of choice on the African
continent
EXAMPLES OF SUCCESS STORIES AND INTERNATIONAL CHAMPIONS
• Linedata est is a creator of global solutions dedicated to asset management, insurance and credit professionals, with 20 offices in 50 countries around the world
• In 2004, the group has established itself in Africa with the opening of an office in Tunis, the activity of which is entirely dedicated to the export of management ERP to Europe and Africa
• VERMEG, one of the leading companies in the Tunisian economy was created in 1993 to meet the digital transformation needs of the insurance and finance sectors
• Today, the company has more than 500 customers in more than 40 countries and employs more than 1,100 people, 20% of whom are dedicated to R&D activities
• VERMEG is considered the European market leader in life and health insurance management software
• Sopra HR Software, a subsidiary of Sopra Steria, offers complete HR solutions perfectly suited to the needs of Human Resources Departments and is considered a leader in the Human Resources sector in Europe, the Middle East and Africa
• In 2006, Sopra Steria, expanded its activities to Tunisia through the establishment of a center of excellence, operational expertise and project execution, a service center, and a R&D center for innovation and the develop-ment of new solutions
• Founded in November 2011, Sofrecom Tunisia is one of the youngest subsidiaries of Sofrecom and now has more than 550 engineers and experts
• In Tunisia, the company which specializes in consulting and engineering for the telecommunications sector is conside-red a center of development and expertise for service and information system platforms whose activities are perfectly complementary with the activities of the group’s other North African subsidiaries
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7EXAMPLES OF SUCCESS STORIES AND INTERNATIONAL CHAMPIONS MAIN PLAYERS IN THE ICT SECTOR IN TUNISIAThe ICT sector brings
together a multitude of leading players at
the local and regional levels
AG TIC ANG.indd 7AG TIC ANG.indd 7 02/06/2020 12:3802/06/2020 12:38
8On average, there
are more than 10,000 graduates in the fields
related to the ICT sector - according
to the «Global Competitiveness
Report“- Tunisia ranks first in North Africa
in terms of quality of vocational training,
graduates skills and ease of access to
skilled employees
A POOL OF TALENTS COVERING THE AUTOMOTIVE SECTOR’S NEEDS
• Over 7,500 engineers graduates annually
• 47 Schools and establishments (public and private), offering engineering training
• 25 Higher institutes of technological studies ensuring the training of qualified middle managers and technicians and meeting the needs of companies
• + 60 public vocational training centers, covering the entire Tunisian territory
Quality of vocational training (score)
Graduates ‘ skills (score)
Ranking of countries by ease of finding skilled employees
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33,1
39
43,3
43,4
44,9
45,6
48,4
61,3
31,8
37,8
40,8
41
43,4
44,9
45
57,6Rank « 1 » means the best
138 133 131 125 109 99 94 66
RANK*
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9The cost of labor is
a major competitive asset of the Tunisian market - the average
annual cost of Tunisian engineers is
largely competitive compared to the main competing
destinations ...
Source : International HR compensation leader 2019
COST OF THE LABOREngineer - Manager
Opérations - Manager
Operations – Operator - Professional
Engineer – Senior Professional
Opérations – Supervisor
Technician – Senior professional
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372%
309%
304%
269%
268%
258%
210%
206%
201%
175%
169%
100%
340%
299%
288%
270%
253%
246%
197%
193%
151%
147%
124%
100%
892%
661%
604%
604%
482%
439%
427%
413%
384%
256%
141%
100%
249%
210%
200%
184%
175%
163%
159%
140%
139%
110%
101%
100%
475%
419%
406%
350%
309%
301%
279%
251%
240%
195%
139%
100%
429%
426%
402%
357%
349%
310%
307%
272%
245%
238%
132%
100%
AG TIC ANG.indd 9AG TIC ANG.indd 9 02/06/2020 12:3902/06/2020 12:39
10The country has also a multitude
of integrated and developed facilities aimed at promoting
R&D, production and training activities ...
Cyber parc
Technopoles
COMPETITIVENESS CENTERS, TECHNOPOLES AND CYBER PARKS • 10 Competitiveness centers and Technopoles
spread over the whole Tunisian territory focusing on the promising sectors of the Tunisian economy
• 18 regional cyber parks support new business creators during the incubation phase of business projects
• One of the biggest technology parks in Africa
• A surface area of 155 hectares
• More than 100 national and foreign ICT companies
• A surface area of 10,5 hectares
• A R&D center • An integrated facility
to host: - Academic and
research training activities
- Innovation and transfer of techno-logy activities
- Production and development acti-cities
• A surface area of 60 hectares
• More than 65 companies
• The technopole has 3 laboratories: - Microelectronic
systems- Advanced Material
Systems and nano-physical systems
- Microsystems of physical chemical and biological weapons
Innovation Center Tunisia
AG TIC ANG.indd 10AG TIC ANG.indd 10 02/06/2020 12:3902/06/2020 12:39
11... and has set up
a development program for
industrial parks, in line with its
national regional development
strategy
A LAND DEVELOPMENT PLAN THAT MEETS THE INDUSTRIAL SECTOR’S NEEDS
• Tunisia has more than 150 industrial parks covering more than 10 thousand hectares. The average price per square meter in the areas currently up for sale is about 40 TD / m² equivalent to around 12 € / m²
• Tunisia has set up a 2016-2020 program for the development of industrial parks aiming to develop more than 65 industrial parks for a total surface area of more than 2,000 ha at an estimated cost of more than 650 million Dinars, distributed as follows :- 51 regional development zones over a surface area of 1,508 Ha- 18 industrial parks over a surface area of 746 Ha in the rest of the
country • …as well as a program to renovate 60 industrial parks for a total
surface area of over 1,576 ha at an estimated cost of more than 150 million Dinars, distributed as follows :- 20 regional development areas over a surface area of 400 Ha- 40 industrial parks over a surface area of 1,176 Ha in the rest of the
country
2
1 11
2
5
3
1
6
2
1
1
2
3
7
2
5
n ZDR 1st groupn ZDR 2nd group
New industrial parks and industrial parks currently up for sale- 2017
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12The penetration rates
of fixed and mobile internet have been
growing strongly over the 2013 – 2019 period driven by the
democratization of 4G and Data Boxes
PENETRATION RATE FOR
FIXED TELEPHONY DATA
PENETRATION RATE FOR
MOBILE TELEPHONY DATA
DISTRIBUTION OF SUBSCRIBERS
IN FIXED TELEPHONY DATA BY CONNECTION
2013
2014
2015
2016
2017
2018
2019
22,5
%
21,5
%
21,2
%
23,0
%
27,9
%
33,9
%
36,5
%
2013
2014
2015
2016
2017
2018
2019
30,7
%
47,2
%
61,9
%
62,8
%
65,1
%
75,8
%
75,2
%
4Mb/s 8Mb/s 12Mb/s Other
2017 67,5% t 24,7% s 3,6% s 4,2%
2018 54,2% t 34,1% s 8,0% s 3,7%
April 2019 47,2% t 38,0% s 11,3% s 3,5%
• The fall in internet access costs was accompanied by a significant impro-vement in ADSL access with speeds of 8.MB / s and 12MB / s
• The growth in the number of internet connections is driven by the demo-cratization of mobile data
• The mobile data penetration rate was 75.2% at the end of April 2019
• Tunisia has started preparations for the launch of 5G networks - a study on the advisability and the technical and economic conditions for the in-troduction of 5G is scheduled for the end of 2021
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13 Type of incentive Rate of incentive / Tax Incentives Incentive limit
Regional Development(except negative list)
Zone 1 : 15%/ investment cost Zone 2 : 30%/ investment cost
Zone 1: 1,5 MDTZone 2: 3 MDT
Zone 1: Total deduction at 100% from the tax base for 5 years and payment of 10% after
Taking in charge of the employer’s contribution= 5 years
Zone 2: Total deduction at 100% from the tax base for 10 years and payment of 10% after
Taking in charge of the employer’s contribution = 10 years
Deduction from the corporate tax base, revenues or profits reinvested in the subscription to the initial capital or in its increase
Priority sectors15% /investment cost 1 MDT
Taking in charge of the employer’s contribution= 3 ans
Economic branches 15% /investment cost 1 MDT
Infrastructure subsidy (DR)
Zone 1: 65%
Zone 2: 85%
10% /project cost
Maximum limit 1MD
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innovations (1/2)development and
investment, regional aims to promote
investment law which mentioned in the new of the priority sectors The ICT sector is one
14
Mapping of bonuses and incentives for
projects of national interest (PNI)
Incentive Type Incentive rate / Tax Incentives Incentive limit
Material investment : New technologies and productivity enhancement
50% component cost 500 KD
Intangible investment 50% component cost 300 KD
Research and development expenses
50% component cost 500 KD
Certified trainings expenses 70% component cost 20 KD/company
Employability incentive Taking in charge of the of salaries according to management rate
Sutaibnable development incentives
50% component cost 300 KD
PROJECTS OF NATIONAL INTEREST PIN
Eligibility criteria Process for obtaining bonuses and incentives Bonuses and incentives
Investment cost is higher than 50 MTD or crea-tion of minimum of 500 jobs over 3 years
Study of projects at the level of the l’Instance Tunisienne de l’Inves-tissement (Tunisian Investment Authority)
Investment incentives within the limit of 1/3 of the investment cost with a maximum 30 MTD
Tax exemption over a period up to 10 years
Infrastucture works taken in charge by the State
Support for the employer’s contribution to the social security scheme up to 10 years
Granting of non-agricultural state land: long-term rental or in symbolic dinar
Meets one of the 4 objectives of the investment law
Submission to the Investment Council for approval of advantages
AG TIC ANG.indd 14AG TIC ANG.indd 14 02/06/2020 12:3902/06/2020 12:39
innovations (2/2)development and
investment, regional aims to promote
investment law which mentioned in the new of the priority sectors The ICT sector is one
15
Eligibility criteria Process for obtaining bonuses and incentives Bonuses and incentives
Investment cost is higher than 50 MTD or crea-tion of minimum of 500 jobs over 3 years
Study of projects at the level of the l’Instance Tunisienne de l’Inves-tissement (Tunisian Investment Authority)
Investment incentives within the limit of 1/3 of the investment cost with a maximum 30 MTD
Tax exemption over a period up to 10 years
Infrastucture works taken in charge by the State
Support for the employer’s contribution to the social security scheme up to 10 years
Granting of non-agricultural state land: long-term rental or in symbolic dinar
Meets one of the 4 objectives of the investment law
Submission to the Investment Council for approval of advantages
AG TIC ANG.indd 15AG TIC ANG.indd 15 02/06/2020 12:3902/06/2020 12:39
Rue du Lac Huron, Les berges du Lac 1,1053 Tunis
Tél.: +216 70 248 148Fax: +216 70 248 100
@2019 Tunisia Investment Authority
www.tia.gov.tn
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