Business Climate in Tunisia: Challenges and Priorities

In a highly competitive context, Tunisian companies face an increasingly unstable environment that makes it difficult to maintain a competitive edge.

Growing Turbulence in the Market

Tunisian firms are competing in markets that are becoming ever more turbulent and uncertain, driven by the rapid pace of change. A favorable business climate is a key determinant of competitiveness, offering companies the chance to reap competitive advantages.

It is clear that, in terms of opportunities, the Tunisian economy possesses the resources and human capital needed to attract foreign direct investment (FDI). This is reinforced by a strategic geographic location close to both the European market and the regional market.

Major Obstacles to Competitiveness

Nevertheless, Tunisia’s competitiveness still faces several hurdles. The deterioration of core economic indicators recorded after the 2011 revolution has left the country’s business climate vulnerable.

The main handicap lies in administrative and financial constraints. These constraints, combined with other regulatory factors, jeopardize the competitiveness of both firms and the nation.

Consequently, improving the business climate has become a strategic imperative for Tunisia—one that can catalyze domestic and foreign private investment, support growth, and stimulate job creation.

“Identifying and prioritising intervention areas is not only a sine‑qua‑non for promoting investment, but also a necessity to lift the quality of the business climate to the level of international best practices in an increasingly competitive environment,” explains the Tunisian Institute of Competitiveness and Quantitative Studies (ITCEQ) in a recent survey titled “Analysis of the Business Climate in Tunisia: Methodological Renewal and Priority Action Levers.”

The survey reveals that the perception of Tunisia’s business climate is generally unfavorable among company leaders, except for offshore‑registered firms, which maintain a more positive outlook.

Three Priority Pillars

ITCEQ urgently calls for action in response to the degradation of the business environment, a trend confirmed both by international indicators and by entrepreneurs’ testimonies. This situation reflects deep structural weaknesses that could permanently damage the country’s economic base if left unaddressed.

The study identifies three priority pillars:

Institutional Stability
Strengthening Good Governance
Modernising Support Mechanisms for Companies, especially those linked to the knowledge economy.

These axes are deemed essential to restore confidence, revive private initiative, and place Tunisia on a trajectory of sustainable competitiveness.

Long‑Term Strategies Are Crucial

Implement long‑term strategies to improve the business climate and make it conducive to corporate flourishing.
Revive productive investment by enhancing the regulatory and institutional framework, thereby boosting attractiveness and accelerating macro‑economic reforms.
Combat bureaucracy that suffocates the economy by reducing regulatory constraints, narrowing the gap between formal and informal institutions, and simplifying procedures for foreign investors.
Increase transparency and adopt serious anti‑corruption controls.

Building Trust

Identifying obstacles, weaknesses, and difficulties faced by businesses has become an ongoing task involving multiple public and private actors. The internal and external environment of firms has been unfavorable for years, disrupting development processes and the implementation of strategic reforms.

Often, crises create conditions that are more favourable for change. The current ambition is to achieve new progress by tackling the toughest obstacles.

In an environment of economic uncertainty, enhancing the business climate is essential to build trust among public‑ and private‑sector stakeholders through a participatory approach, to foster production and competitiveness conditions for companies and the national economy, and to strengthen Tunisia’s attractiveness for foreign investment.