Summary:

On 17 September 2024, the Minister of Industry, Mines and Energy announced that the German automobile components manufacturer Draxlmaier, will inaugurate a new production unit at Novation City near Sousse by March 2025.  

The unit will be dedicated to design efforts and will employ 1,000 engineers, according to the Minister’s statements during the 50th anniversary celebration of Draxlmaier’s presence in Tunisia.  

Draxlmaier already maintains five production sites in Sousse, Siliana, El-Jem and Jammel which employ over 10,000 employees making the firm a significant player in the development of the automobile industry in Tunisia. In 2023 the company announced the creation of Sousse Hub—a new research, development, and information technology center within Novation City. 

Meanwhile, Nvidia, which is a leading American artificial intelligence (AI) and technology company, inaugurated an AI Innovation Hub also in Novation City.  

Hichem Turki, CEO of Novation City, said that the hub is set to train developers in Nvidia’s advanced technologies and that it is a part of Novation City’s strategy to develop the mechatronics sector in Tunisia, of which AI is an integral part. 

Outlook: 

The continued re-investment by Draxlmaier and other international automobile and technology companies in Tunisia will help to reinforce the country’s attractiveness to high-value and high-impact foreign direct investments. 

The Sousse research hubs could help Tunisia become a platform for not only Tunisian nationals, but also for skilled individuals from other African countries, to develop their skills and careers in leading global companies. 

The Novation City partnerships with companies like Draxlmaier and Nvidia will also provide much-needed employment opportunities as many national companies struggle to maintain their production or have already closed.  

However, these investments in the coastal cities come as Tunisia is struggling to attract investments to its interior regions where unemployment and under-development are more prevalent, but where it remains difficult to attract foreign investment.  

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