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Economy
Tunisian Startups & Investment Climate: Challenges, Potential, and the Road Ahead

2.2 Minutes
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  Arbia Cheref
Startups tunisiennes & Climat d’investissement

In a global landscape shaped by recurring crises and fast-paced competition, Tunisia’s startup scene has shown creativity, grit, and resilience. Yet behind the ambition lies a more complex reality: What are the real conditions entrepreneurs face? What support mechanisms exist and where are the gaps? Most importantly, what structural changes are needed to foster an inclusive, dynamic startup environment?

These are the central questions addressed in the policy paper "Tunisian Startups and Investment Climate: An Exploratory Qualitative Study," published by the Friedrich Naumann Foundation for Freedom, Tunisia and Libya Office in collaboration with the Laboratory for International Economic Integration (LIEI). Authored by Teheni El Ghak and Najeh Souissi, the study draws on fieldwork conducted with startup founders and key institutional stakeholders.

The study paints a nuanced picture of the current ecosystem:

  • Despite the promising Startup Act, most startups still struggle with administrative complexity, slow access to funding, poor inter-ministerial coordination, and regulatory uncertainty.

  • While Tunisia ranked 10th in Africa in the 2024 Global Startup Ecosystem Report, the number of newly labeled startups dropped dramatically from 224 in 2020 to just 3 in 2023, a sign of lost momentum.

  • Many founders rely solely on personal funds, and external financing mechanisms (such as Smart Capital, crowdfunding, and public funding) are perceived as inefficient, opaque, or overly centralized in the capital.

  • The internationalization of startups remains difficult due to outdated foreign exchange laws, limited export support, and a lack of commercial diplomacy.

Expert Insights on Air

To accompany the release of the publication, Ms. Teheni El Ghak, co-author and Assistant Professor of Economics at ISG Tunis, shared highlights from the report on Radio IFM.
During the interview, she emphasized the study’s findings and the urgent need for reform to boost innovation, improve trust in public mechanisms, and create a more inclusive and forward-looking entrepreneurial ecosystem in Tunisia.

Policy Recommendations: From Paper to Action

The report proposes 15 actionable recommendations, including:

  • The creation of a startup one-stop shop to streamline administrative procedures.

  • Revising the foreign exchange code to allow for easier international transactions and investment inflows.

  • Developing a specific legal status for FinTechs, inspired by models in Egypt and the UK.

  • Launching digital nomad visas and e-residency programs to attract remote workers and international entrepreneurs.

  • Boosting collaboration between universities, research centers, and startups, especially in emerging sectors like FinTech and GreenTech.

  • Improving transparency and accountability in public funding schemes like AIR and Smart Capital.

These proposals draw from global best practices in countries such as Estonia, France, Morocco, Turkey, and Saudi Arabia, tailored to Tunisia’s socio-economic context.


Listen to Ms. El Ghak’s full radio interview on: https://www.facebook.com/share/p/19pwWEmTdM/

 

Download the full study in French