Summary:

During Q1 2023, foreign investment in Tunisia reportedly rose by 15.2% from Q1 2022. The Tunisian government’s Foreign Investment Promotion Agency (FIPA) reported investment growth across most sectors other than energy, where the government has granted few permits for operations.

In April, Tunisia followed only the United Arab Emirates and Saudi Arabia regionally in raising investment capital. Tunisian startups raised nearly $550,000 in April despite a global decline in startup investment. Analysts attribute a general slowing of the startup investment climate to the uncertainty driven by the war in Ukraine and recent perceived fragility in the US banking market driven by the collapse of Silicon Valley Bank.

Tunisian startup Drest (drest.tn) which provides online sales of lifestyle products, raised $336,000 of the $550,000. The investment came from 216 Capital (https://216capital.vc/), a Tunisia-based venture capital firm investing in early stage startups.

Meanwhile, German manufacturer Marquadt Group announced plans to begin construction on an expanded production facility in the NeoPark El Fejja area in southwest Manouba. Marquadt announced that they plan to build a state-of-the-art production facility that will produce “interfaces for premium vehicles.” Marquadt estimates the expansion will create 1,500 jobs.

Outlook:  

While encouraging, the growth in investment is unlikely an indication of major shifts in the market. Numerous challenges remain for startups globally with indications of a conservative approach by many investors.

Reporting indicates that the high April numbers for investments in Tunisia were likely a confluence of deals in a single month rather than indications of a trend toward higher monthly investments.

While some opportunities for funding remain, Tunisian startups face an uphill battle against global perceptions of the political and economic conditions on the ground.

Explore our services or speak with our team of North Africa-based risk experts.