Summary:

On 30 January 2025, The Tunisia Investment Authority announced that 2024 investments in Tunisia amounted to 5.6 billion dinars (about $1.7 billion), a 7.1% increase from 2023. 

TIA’s report shows a 150% increase in renewable energy investments, ranking the sector first in terms of investment growth, followed by the services sector which saw a 43% increase in investment.  

Investments in Tunisian industrial firms saw only a 3% increase, while maintaining the first position in terms of total declared investments at 52%. Mechanical and electrical production represented 38% of industrial investments. Agriculture came second with 22% of investments, services were 20%, and renewable energy were 5%.  

The report emphasized that the increase in investments was accompanied by an increase of 6.7% in new jobs created. Foreign investors accounted for 28% of the investments made during 2024, according to the TIA. 

Outlook: 

An increase in investments is an additional positive sign of Tunisia’s recovery after the COVID-19 recession, with more investors willing to open businesses in Tunisia. 

Government-led efforts to attract renewable energy investments, especially green hydrogen projects, are likely to continue paving the way for foreign capital and new job creation. The government remains keenly interested in this sector as it aligns with energy security objectives. 

Proximity to European markets not only makes Tunisia a hub for renewable energy exports to the northern Mediterranean region but also positions it well in the supply chain for automobile components used by European vehicle manufacturers who continue to benefit from the low cost of production in Tunisia. However, investors are facing continued challenges, mainly due to basic goods shortages and increasing taxes on revenues for highly exporting companies. While strikes in the private sector have been rare in recent years, increasing inflation and waning purchasing power are likely to continue fostering demands for salary increases amongst private sector laborers. This could put pressure on the margins that have traditionally attracted manufacturing operations to Tunisia. 

While encouraging, increasing investment numbers cannot hide the ongoing challenges in navigating Tunisia’s government bureaucracy that, in many ways, discourages the creation of new business through highly protectionist policies that benefit government firms and laborers. Ongoing efforts to digitalize and facilitate procedures for investing in Tunisia are likely to help, but do not address the underlying and long-standing policy challenges present in the market. 

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