Linking FDI, Technology Development for Capacity Building & Strategic Competitiveness Mr. Abdessalem MANSOUR General Manag...
Content <ul><li>Trilogy : FDI, Know-how and Competitiveness </li></ul><ul><li>The Tunisian Case : </li></ul><ul><ul><ul><u...
<ul><li>The sought objective from attracting FDI’s is : </li></ul><ul><ul><ul><li>the strengthening of the countries’ comp...
Trilogy  :    FDI + Know-How + Competitiveness <ul><li>FDI are an important vehicle for the transfer of Know-How </li></ul...
<ul><ul><li>The liberalization of FDI regimes   </li></ul></ul><ul><ul><li>has gone far, and most countries now actively p...
<ul><ul><li>In various ways  FDI affects resource flows and </li></ul></ul><ul><ul><li>investment in productive capacity <...
<ul><ul><li>Transforming and upgrading the technologies   used in production and strengthening national technological capa...
<ul><ul><li>The MNCs tend to be leading innovators.   </li></ul></ul><ul><ul><li>They are leading suppliers of technology ...
Positive spillover effects <ul><ul><li>competition with local firms ,  stimulating them to improve technological capabilit...
The Tunisian Case :  the main features of Tunisia Oct. 15-17 , 2002   Foreign Investment Promotion Agency
A  Strategic  Location    in the Euro-Mediterranean region  Tunis - Valetta  1h 00 Tunis - Rome    1h 00 Tunis - Barcelona...
Area   162 155 sq.km Population  9.6 million inhabitants Active   population 32.6 % of total population Climate    Mediter...
4.5% per year since 1987 & 5.3% per year from 1997 & 2001 4.8% 4.7% GDP Growth (in Billion TND) 5.2% 4.9% 6.2% Oct. 15-17 ...
GDP Breakdown in 2001 Oct. 15-17 , 2002   Foreign Investment Promotion Agency
TND 13.4 billion  i n 2001 <ul><li>Growth rate :   </li></ul><ul><li>6.6% per year during the last four years 97 & 2001 </...
<ul><li>A controlled inflation :   </li></ul><ul><li>3%  in average during the last four years 1997 & 2001 </li></ul>Infla...
A budget deficit of 3% in average between 1997 & 2001 Budget Deficit Oct. 15-17 , 2002   Foreign Investment Promotion Agency
Savings Rate  (in % of GDP) Oct. 15-17 , 2002   Foreign Investment Promotion Agency
Tunisia’s  Risk  Assessment Oct. 15-17 , 2002   Foreign Investment Promotion Agency
According to the Africa Competitiveness Report 2000 compiled by The  World Economic Forum  & Harvard Institute for Interna...
Skilled and Competitive Human Resources The Africa Competitiveness Report 2000  compiled by  The World Economic Forum &  H...
<ul><li>Standard & Poor ’s  :   BBB  “2001” </li></ul><ul><li>Moody ’s    :   Baa3  // </li></ul><ul><li>IBCA-FITCH   :   ...
<ul><li>Member to the GATT accords in 1990 </li></ul><ul><li>Member to the WTO since 1995 </li></ul><ul><li>Association Ag...
Tunisia-EU Free Trade Agreement    Signature:   July 1995    Entry in force:  January 1st, 1996    Duration:  Gradual i...
Free Trade Agreements EGYPT Tunisia  is a Gateway to the  Middle East & African countries   MOROCCO  JORDAN Oct. 15-17 , 2...
Legal & Regulatory Framework Oct. 15-17 , 2002   Foreign Investment Promotion Agency
A Legal and Regulatory Framework    Investment is   FREE    Simple  procedures  to set up a new  company    FREE   tran...
Full and Partial Tax Exemption Full exemption for  10 years 50%  reduction starting from the 11th year for an unlimited pe...
Technology and Research & Development    Legal Framework    Investments made by industrial, agricultural and fishing comp...
Technology and Research & Development    Legal Framework <ul><li>   Investments made by companies in order to  save energ...
Technology and Research & Development    Legal Framework <ul><li>   Investments aiming at saving energy, developing resea...
Technology and Research & Development    Legal Framework <ul><li>   Investments made by research and development companie...
Setting-up a Company  One-Stop-Shop    certified ISO 9002  - Private Limited Company “S.A.R.L.” 24  hours -  Limited   Lia...
of which   2102   from the EU France: 943 Italy: 537 Germany: 266 Belgium: 212 Foreign Companies in Tunisia 2 449 818 348 ...
Average annual setting up : <ul><li>1973 - 87 :  31  companies / year </li></ul><ul><li>1988 - 91 :  109  companies / year...
FDI Flows during 2001 Main countries (in %) - Including energy Oct. 15-17 , 2002   Foreign Investment Promotion Agency
The Tunisian Strategy For Attracting  FDI and Technology Transfer Oct. 15-17 , 2002   Foreign Investment Promotion Agency
Strategy to attract FDI <ul><li>Faithful to its tradition, Tunisia followed a wise, pragmatic approach in attracting FDI i...
The job creation <ul><li>The qualification of the human resources in Tunisia recognized by the various international agenc...
The increase of the exports <ul><li>Exports constitute a fundamental element in the Tunisian economic policy.  </li></ul><...
The transfer of technology <ul><li>Tunisia is  strongly willing to attract FDI in “up-to-date technologies &quot;  to allo...
Strategy to attract FDI <ul><li>The selected sectors for attracting FDI, are those in which Tunisia enjoys comparative adv...
<ul><li>124   companies generating  16 000 jobs </li></ul><ul><li>33  of them are totally exporting companies,  </li></ul>...
Availability of a skilled and competitive  manpower <ul><li>A quick adjustment to new technologies </li></ul>6  schools fo...
(Wire Harnesses) <ul><li>Lear Corporation  </li></ul><ul><li>Delphi Packard Electric </li></ul><ul><li>DRÄEXLMAIER  </li><...
Tunisia Comparative Advantage Tunisia Comparative Advantage Attraction to the Foreign Investor Exhaust systems Seat parts ...
<ul><li>S eat covers  </li></ul><ul><li>Mechanical plastic connectors  </li></ul><ul><li>Cable harnesses </li></ul>Profita...
Unit costs of Production in EURO Product Seats: Seat covers:  Unit: a  set  of seat covers for the 2  front  seats  and ba...
Product: Plastic Components  Mechanical plastic connectors Unit: 800 connectors (contents of a  box  for export) Unit cost...
Product: Electri c/ Electroni c Com. C able  Harnesse s Unit: a  set  of  harnesses  for the  interior  of a n   medium  l...
<ul><li>213  companies generating  29 400  jobs.  </li></ul><ul><li>( the electric sub-sector employs  70%  of the total j...
Electronic Industry:  companies’ breakdown by field  Oct. 15-17 , 2002   Foreign Investment Promotion Agency
<ul><li>Printed circuits </li></ul><ul><li>Connectors </li></ul><ul><li>Coils and Transformers </li></ul><ul><li>Passive c...
Product: Wire and Cables Electric cables of Connection Unit: a cable of connection (bipolar, 2   connectors, male and fem ...
Product: Connectors E lectronic Interface Unit: electronic   interface Unit costs of Production in EURO Source:  Comparati...
Product: Printed circuits  Single face  Printed circuits Cards  for  Domestic Use Unit: 1m2 of  printed circuits card Unit...
<ul><ul><li>Investment evolution: </li></ul></ul><ul><ul><li>For 1992-1996 period :   TND 862 million </li></ul></ul><ul><...
<ul><ul><li>According to the UNDP report on Human Development 2001 </li></ul></ul><ul><ul><li>Tunisia is ranked among the ...
<ul><ul><li>According to the UNDP report on Human Development 2001 </li></ul></ul><ul><ul><li>the Technological Park of Tu...
<ul><ul><li>Integrated  Call Centers  “CRM : Customer Relationship </li></ul></ul><ul><ul><li>Management” </li></ul></ul><...
Product: Software Development  Software Development Center Unit: one man-day of  a  software engineer Unit costs of Produc...
Produ c t:  Call  Cente r s  Call  Cent e rs  Unit:  one man-day of a call center employee Unit costs of Production in EUR...
The World Summit on Information  to be held in 2005. will be organized in  TUNISIA Oct. 15-17 , 2002   Foreign Investment ...
<ul><li>2087 companies / + 10 employees </li></ul><ul><li>1640 wholly exporting companies  </li></ul><ul><li>252.000   job...
Breakdown of Textile Companies by Sector Oct. 15-17 , 2002   Foreign Investment Promotion Agency
2nd  supplier for  external clothing to Italy  4th  clothing supplier  Tunisia’s  Ranking 5th  textile customer  of the EU...
7   weeks    Tunisia 10  weeks    Central / Eastern Europe 12  weeks    Latin America  Time allocated for Garment Industry...
…… .. from subcontracting to project implementation……. BENETTON  (Italy) Over  60 subcontractors in Tunisia (3500 jobs) Ma...
<ul><li>Ready-to-wear clothing </li></ul><ul><li>Yarn production to meet the local demand  </li></ul><ul><li>High quality ...
Packaging <ul><li>230  op e rati ng  companies,  wholly  or partially export ing . </li></ul><ul><li>A   know -how and a  ...
Produ c t:  Corrugated Cardboard boxes Product  Un it  :  order  of 10 000 boxes Fefco 201, 400x300x300 mm Unit costs of P...
Product: Moulded plastic Plastic Yoghourt pots:  Unit: 1000 yoghourt pots of 125 grs Unit costs of Production in EURO Sour...
Product: Pharmaceutical Packaging &quot;Contract Packaging&quot; of  tablets and capsules :  Unit: a box board in bulk con...
The Upgrading Program in Tunisia Oct. 15-17 , 2002   Foreign Investment Promotion Agency
Progress of the Upgrading Program About   2 278   Tunisian companies  are  involved in the Upgrading Program.    for a gl...
<ul><li>Partnerships and alliances </li></ul><ul><li>Subcontracting  </li></ul><ul><li>Industrial and logistic platform fo...
Insight into FIPA Tunisia Oct. 15-17 , 2002   Foreign Investment Promotion Agency
Set up since  1995  under the supervision of the MCIIE. Staff :  70 , including  6 overseas representatives, namely in Par...
<ul><li>Contribution to the image building of Tunisia abroad </li></ul><ul><li>Attraction of FDI to Tunisia </li></ul><ul>...
Source :  July-August 2001 issue of Corporate Location Magazine - Euromoney Group.  http://www.investintunisia.com ranked ...
The Tunisian case <ul><li>To sum up, I would say that : </li></ul><ul><ul><ul><li>the Tunisian experience in the field of ...
Thank you for your attention... Oct. 15-17 , 2002   Foreign Investment Promotion Agency
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Foreign Direct Investment

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Foreign Direct Investment

  1. 1. Linking FDI, Technology Development for Capacity Building & Strategic Competitiveness Mr. Abdessalem MANSOUR General Manager of FIPA-Tunisia FIPA Tunisia Colombo - Sri Lanka 15-17 October 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  2. 2. Content <ul><li>Trilogy : FDI, Know-how and Competitiveness </li></ul><ul><li>The Tunisian Case : </li></ul><ul><ul><ul><ul><li>Main features of Tunisia </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tunisia’s risk assessment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Legal & regulatory framework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tunisian strategy for attracting FDI and Technology Transfer </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Upgrading program in Tunisia </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Insight into FIPA Tunisia </li></ul></ul></ul></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  3. 3. <ul><li>The sought objective from attracting FDI’s is : </li></ul><ul><ul><ul><li>the strengthening of the countries’ competitiveness through the transfer of technology and know-how, and particularly the innovative projects </li></ul></ul></ul>Why countries are looking for FDI ? Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  4. 4. Trilogy : FDI + Know-How + Competitiveness <ul><li>FDI are an important vehicle for the transfer of Know-How </li></ul><ul><li>FDI & Know-How are intimately linked </li></ul><ul><li>FDI in high added value and innovative projects will lead to a high competitiveness level </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  5. 5. <ul><ul><li>The liberalization of FDI regimes </li></ul></ul><ul><ul><li>has gone far, and most countries now actively promote the inflow of FDI for both greenfield FDI and cross-border M&As. </li></ul></ul>Foreign Direct Investment Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  6. 6. <ul><ul><li>In various ways FDI affects resource flows and </li></ul></ul><ul><ul><li>investment in productive capacity </li></ul></ul><ul><ul><li>in host countries . </li></ul></ul><ul><ul><li>The flows of capital and income arising from the activities of </li></ul></ul><ul><ul><li>foreign affiliates also affect the balance of payments and the </li></ul></ul><ul><ul><li>allocation of benefits from foreign investment between host </li></ul></ul><ul><ul><li>countries and foreign investors. </li></ul></ul>Foreign Direct Investment Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  7. 7. <ul><ul><li>Transforming and upgrading the technologies used in production and strengthening national technological capabilities to innovate, are major objectives of countries with respect to their development process . </li></ul></ul><ul><ul><li>The transfer of technology and its efficient application and dissemination are therefore some of the most important benefits sought by developing countries from FDI. </li></ul></ul>Foreign Direct Investment Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  8. 8. <ul><ul><li>The MNCs tend to be leading innovators. </li></ul></ul><ul><ul><li>They are leading suppliers of technology to developing countries and economies in transition through FDI and other forms of transfer, such as licensing, minority joint ventures, subcontracting, strategic alliances or capital goods sales. </li></ul></ul><ul><ul><li>They can also stimulate the development of innovatory capacities in host economies , thereby supplementing technology dev. that takes place through R&D in domestic firms and publicly funded institutions. </li></ul></ul>Multinationals’ Role Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  9. 9. Positive spillover effects <ul><ul><li>competition with local firms , stimulating them to improve technological capabilities and raise productivity; </li></ul></ul><ul><ul><li>co-operation between affiliates and local suppliers and customers, stimulating technology spillovers to vertically linked firms and service providers; </li></ul></ul><ul><ul><li>labor mobility , particularly of highly trained personnel, from foreign affiliates to domestic firms, </li></ul></ul><ul><ul><li>proximity between foreign and local firms, leading to personal contact, reverse engineering, imitation and the formation of industrial clusters facilitating technological upgrading in host countries. </li></ul></ul>
  10. 10. The Tunisian Case : the main features of Tunisia Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  11. 11. A Strategic Location in the Euro-Mediterranean region Tunis - Valetta 1h 00 Tunis - Rome 1h 00 Tunis - Barcelona 1h 30 Tunis - Madrid 2h 00 Tunis - Paris 2h 15 Tunis - Frankfort 2h 30 Tunis - Brussels 2h 40 Tunis - London 2h 50 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  12. 12. Area 162 155 sq.km Population 9.6 million inhabitants Active population 32.6 % of total population Climate Mediterranean Time GMT + 1 Capital Tunis (1.8 million inhabitants) Currency Tunisian Dinar (TND) TND 1 = Euros 0.777 Basic Data 2001 <ul><li>GDP per capita </li></ul><ul><li>TND 2847.6 </li></ul><ul><li>GNP </li></ul><ul><li>TND 28.9 billion </li></ul><ul><li>GDP Growth </li></ul><ul><li>5.2 % </li></ul><ul><li>Exports </li></ul><ul><li>TND 13.4 billion </li></ul><ul><li>Imports </li></ul><ul><li>TND 14.5 billion </li></ul><ul><li>Tourist Revenues </li></ul><ul><li>TND 2.245 billion </li></ul><ul><li>FDI </li></ul><ul><li>TND 685 million </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  13. 13. 4.5% per year since 1987 & 5.3% per year from 1997 & 2001 4.8% 4.7% GDP Growth (in Billion TND) 5.2% 4.9% 6.2% Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  14. 14. GDP Breakdown in 2001 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  15. 15. TND 13.4 billion i n 2001 <ul><li>Growth rate : </li></ul><ul><li>6.6% per year during the last four years 97 & 2001 </li></ul><ul><li>Exports of goods & services contribute to </li></ul><ul><li>1/3 of the GDP growth </li></ul>Exports of Goods and Services Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  16. 16. <ul><li>A controlled inflation : </li></ul><ul><li>3% in average during the last four years 1997 & 2001 </li></ul>Inflation Rate Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  17. 17. A budget deficit of 3% in average between 1997 & 2001 Budget Deficit Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  18. 18. Savings Rate (in % of GDP) Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  19. 19. Tunisia’s Risk Assessment Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  20. 20. According to the Africa Competitiveness Report 2000 compiled by The World Economic Forum & Harvard Institute for International Development, Tunisia out of the 24 African countries surveyed , tops the competitiveness rankings. Competitiveness of the Tunisian Economy Tunisia is the most competitive country in Africa Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  21. 21. Skilled and Competitive Human Resources The Africa Competitiveness Report 2000 compiled by The World Economic Forum & Harvard Institute for International Development RANKS TUNISIA 1ST AFRICAN COUNTRY FOR ITS SKILLED HUMAN RESOURCES Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  22. 22. <ul><li>Standard & Poor ’s : BBB “2001” </li></ul><ul><li>Moody ’s : Baa3 // </li></ul><ul><li>IBCA-FITCH : BBB // </li></ul><ul><li>R & I (Japan) : BBB+ // </li></ul>Standard & Poor’s rating, March 2002 The French Company of Insurance for Foreign Trade “ COFACE” granted Tunisia, A4, as a note in the short-term and a a fairly good risk as a quotation in the medium term. Country Risks 2002 The Investment Grade : has been granted to Tunisia since 1994 Tunisia ratings Romania Turkey India South Africa Thailand Malaysia Poland Hungary B B- BB BBB- BBB- BBB BBB+ A- Tunisia BBB Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  23. 23. <ul><li>Member to the GATT accords in 1990 </li></ul><ul><li>Member to the WTO since 1995 </li></ul><ul><li>Association Agreement with the European Union signed in 1995 </li></ul><ul><li>Arab Free Trade Zone since 1998 </li></ul><ul><li>Bilateral Free Trade Agreements with : </li></ul><ul><li>Morocco, Libya, Jordan & Egypt. </li></ul>Openness and Integration of the Tunisian Economy into the World Economy Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  24. 24. Tunisia-EU Free Trade Agreement  Signature: July 1995  Entry in force: January 1st, 1996  Duration: Gradual implementation over a 12 years period  Free access of all industrial products MADE IN TUNISIA to EU (No quotas, No duties)  About 40% of European industrial products will be fully exempted from Customs duties by the end of the year 2000. Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  25. 25. Free Trade Agreements EGYPT Tunisia is a Gateway to the Middle East & African countries MOROCCO JORDAN Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  26. 26. Legal & Regulatory Framework Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  27. 27. A Legal and Regulatory Framework  Investment is FREE  Simple procedures to set up a new company  FREE transfer of profits and capital  Possibility to be established in Economic Free Zones  Governmental support Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  28. 28. Full and Partial Tax Exemption Full exemption for 10 years 50% reduction starting from the 11th year for an unlimited period <ul><li>Exports </li></ul><ul><li>Agriculture </li></ul><ul><li>Regional development </li></ul><ul><li>Exports </li></ul><ul><li>Regional development </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  29. 29. Technology and Research & Development Legal Framework  Investments made by industrial, agricultural and fishing companies which, by means of a local integration effort, allow the control or the development of technology, or the improvement of productivity , are entitled to the State take over of totally or partly the expenses relating to staff training. Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  30. 30. Technology and Research & Development Legal Framework <ul><li> Investments made by companies in order to save energy are entitled to a specific premium: </li></ul><ul><li>a premium for carrying energy audits : TND 10,000 </li></ul><ul><li>premium for carrying out demonstration projects: TND 50,000 </li></ul><ul><li>premium for investments in the field of rational use of energy & renewable energies </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  31. 31. Technology and Research & Development Legal Framework <ul><li> Investments aiming at saving energy, developing research, production and marketing of renewable energies and geothermics are entitled to </li></ul><ul><li>the reduction of customs duties to the rate of 10%, </li></ul><ul><li>the suspension of value added tax with respect to imported equipment and materials having no similar locally manufactured </li></ul><ul><li>the suspension of value added tax with respect to equipment and materials acquired locally. </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  32. 32. Technology and Research & Development Legal Framework <ul><li> Investments made by research and development companies operating in the industrial and & agricultural and fishing sectors are entitled to : </li></ul><ul><li>the exemption from customs duties and taxes of equivalent effect </li></ul><ul><li>the suspension of value added tax and consumption duty with respect to </li></ul><ul><li>imported equipment having no similar locally manufactured and necessary </li></ul><ul><li>for carrying out those investments </li></ul><ul><li>the suspension of value added tax on locally manufactured equipment </li></ul><ul><li>a premium </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  33. 33. Setting-up a Company One-Stop-Shop certified ISO 9002 - Private Limited Company “S.A.R.L.” 24 hours - Limited Liability Company “S.A.” 3 days <ul><li>Exporting industrial companies : free points </li></ul><ul><li>Customs clearance procedures : simple </li></ul><ul><li>Customs formalities : within factories </li></ul>- Individual Company 2 days Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  34. 34. of which 2102 from the EU France: 943 Italy: 537 Germany: 266 Belgium: 212 Foreign Companies in Tunisia 2 449 818 348 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  35. 35. Average annual setting up : <ul><li>1973 - 87 : 31 companies / year </li></ul><ul><li>1988 - 91 : 109 companies / year </li></ul><ul><li>1992 - 96 : 125 companies / year </li></ul><ul><li>1997 - 00 : 178 companies / year </li></ul>FDI: Foreign Companies in Tunisia 2 449 818 348 During the year 2001 : 202 new companies have been incorporated Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  36. 36. FDI Flows during 2001 Main countries (in %) - Including energy Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  37. 37. The Tunisian Strategy For Attracting FDI and Technology Transfer Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  38. 38. Strategy to attract FDI <ul><li>Faithful to its tradition, Tunisia followed a wise, pragmatic approach in attracting FDI in order to: </li></ul><ul><ul><li>stimulate the economic growth, </li></ul></ul><ul><ul><li>transfer technology, </li></ul></ul><ul><ul><li>create jobs, </li></ul></ul><ul><ul><li>enhance development in remote areas, </li></ul></ul><ul><ul><li>and of course foster competitiveness. </li></ul></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  39. 39. The job creation <ul><li>The qualification of the human resources in Tunisia recognized by the various international agencies is the fruit of a led effective policies, since the independence, in education and in training (1/4 of the State Budget). </li></ul><ul><li>It represents an important asset for Tunisia to attract FDI, mainly in technological fields such as ICT . </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  40. 40. The increase of the exports <ul><li>Exports constitute a fundamental element in the Tunisian economic policy. </li></ul><ul><li>Tunisia is a country which is expanding rapidly and in a need of foreign currencies to develop the economy. </li></ul><ul><li>It is evident that the foreign direct investments in technological fields and export-oriented are particularly encouraged. </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  41. 41. The transfer of technology <ul><li>Tunisia is strongly willing to attract FDI in “up-to-date technologies &quot; to allow her to be more competitive on the international market. </li></ul><ul><li>Any investment assuring a transfer of know-how allowing to improve the productivity, benefits from particular advantages and incentives . </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  42. 42. Strategy to attract FDI <ul><li>The selected sectors for attracting FDI, are those in which Tunisia enjoys comparative advantages and of a high added value and belonging to high technological fields </li></ul><ul><ul><li>Automotive components, </li></ul></ul><ul><ul><li>Electrical and electronic components, </li></ul></ul><ul><ul><li>Information & communication technologies </li></ul></ul><ul><ul><li>Textile and clothing </li></ul></ul><ul><ul><li>Packging </li></ul></ul><ul><ul><li>Agri-business </li></ul></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  43. 43. <ul><li>124 companies generating 16 000 jobs </li></ul><ul><li>33 of them are totally exporting companies, </li></ul><ul><li>20 of them are operating in the wire harnesses field. </li></ul><ul><li>50 of them manufacture OEM parts. </li></ul><ul><li>Production: MTND 557 </li></ul><ul><li>Average annual growth rate (95-2000) : 18% </li></ul><ul><li>Wire harnesses : 54% (9th supplier to EU) </li></ul><ul><li>Exports : MTND 405 </li></ul><ul><li>Imports : MTND 452 </li></ul><ul><li>Main markets : Germany 52% , France: 24% , Italy: 10% </li></ul>Car Components Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  44. 44. Availability of a skilled and competitive manpower <ul><li>A quick adjustment to new technologies </li></ul>6 schools for engineers and qualified technicians 1000 graduate per year Competitive & Highly Skilled Technicians and Engineers Reasons to Invest Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  45. 45. (Wire Harnesses) <ul><li>Lear Corporation </li></ul><ul><li>Delphi Packard Electric </li></ul><ul><li>DRÄEXLMAIER </li></ul><ul><li>LEONISCHE DRAHTWERKE (AG) </li></ul><ul><li>SYLEA (LABINAL Group) </li></ul>Car Component Manufacturers in Tunisia Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  46. 46. Tunisia Comparative Advantage Tunisia Comparative Advantage Attraction to the Foreign Investor Exhaust systems Seat parts Plastic Components Rubber Components Electric components Shock absorbers Cables Engines Breaks Car body Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  47. 47. <ul><li>S eat covers </li></ul><ul><li>Mechanical plastic connectors </li></ul><ul><li>Cable harnesses </li></ul>Profitable Niches Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  48. 48. Unit costs of Production in EURO Product Seats: Seat covers: Unit: a set of seat covers for the 2 front seats and back seat Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  49. 49. Product: Plastic Components Mechanical plastic connectors Unit: 800 connectors (contents of a box for export) Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  50. 50. Product: Electri c/ Electroni c Com. C able Harnesse s Unit: a set of harnesses for the interior of a n medium length vehicle Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  51. 51. <ul><li>213 companies generating 29 400 jobs. </li></ul><ul><li>( the electric sub-sector employs 70% of the total jobs) </li></ul><ul><li>91 wholly exporting companies </li></ul><ul><li>Production : MTND 1078 (2000) </li></ul><ul><li>Average annual growth rate (92-2000) : 12% </li></ul><ul><li>Exports : MTND 796 (2000) </li></ul><ul><li>Imports : MTND 1248 (2000) </li></ul><ul><li>Main markets : Germany 49%, France: 33% </li></ul><ul><li>Foreign companies : 101 of which 54 are 100% foreign </li></ul><ul><li>and 47 in partnership </li></ul>Electric, Electronic & Household Industries Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  52. 52. Electronic Industry: companies’ breakdown by field Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  53. 53. <ul><li>Printed circuits </li></ul><ul><li>Connectors </li></ul><ul><li>Coils and Transformers </li></ul><ul><li>Passive components </li></ul><ul><li>Consumer electronics (TV) </li></ul><ul><li>Consumer electronics (Audio) </li></ul><ul><li>Equipment for Telecommunications </li></ul>Profitable Niches Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  54. 54. Product: Wire and Cables Electric cables of Connection Unit: a cable of connection (bipolar, 2 connectors, male and fem ale ) Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  55. 55. Product: Connectors E lectronic Interface Unit: electronic interface Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  56. 56. Product: Printed circuits Single face Printed circuits Cards for Domestic Use Unit: 1m2 of printed circuits card Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  57. 57. <ul><ul><li>Investment evolution: </li></ul></ul><ul><ul><li>For 1992-1996 period : TND 862 million </li></ul></ul><ul><ul><li>For 1997-2001 period: TND 1500 million </li></ul></ul><ul><ul><li>A telecommunication infrastructure of </li></ul></ul><ul><ul><li>a good quality and in a constant progress </li></ul></ul><ul><ul><li>An average annual growth of : 17% </li></ul></ul>Information Technology Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  58. 58. <ul><ul><li>According to the UNDP report on Human Development 2001 </li></ul></ul><ul><ul><li>Tunisia is ranked among the </li></ul></ul><ul><ul><li>Dynamic Users </li></ul></ul><ul><ul><li>of New Technologies in the </li></ul></ul><ul><ul><li>same category as </li></ul></ul><ul><ul><li>China, India, Brasil and South Africa </li></ul></ul>Human Development Source: UNDP report 2001 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  59. 59. <ul><ul><li>According to the UNDP report on Human Development 2001 </li></ul></ul><ul><ul><li>the Technological Park of Tunis (El Gazella) is also among the 46 world centers </li></ul></ul><ul><ul><li>of Technological Innovation </li></ul></ul>Technological Park of Tunis Source: UNDP report 2001 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  60. 60. <ul><ul><li>Integrated Call Centers “CRM : Customer Relationship </li></ul></ul><ul><ul><li>Management” </li></ul></ul><ul><ul><li>E-commerce between firms and implementing a network </li></ul></ul><ul><ul><li>business to business “B2B” </li></ul></ul><ul><ul><li>Computer engineering services, production and edition </li></ul></ul><ul><ul><li>of software in particular multimedia, data bases and </li></ul></ul><ul><ul><li>specialized business applications </li></ul></ul>Profitable Niches Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  61. 61. Product: Software Development Software Development Center Unit: one man-day of a software engineer Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  62. 62. Produ c t: Call Cente r s Call Cent e rs Unit: one man-day of a call center employee Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  63. 63. The World Summit on Information to be held in 2005. will be organized in TUNISIA Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  64. 64. <ul><li>2087 companies / + 10 employees </li></ul><ul><li>1640 wholly exporting companies </li></ul><ul><li>252.000 jobs (56% of the manufacturing sector jobs) </li></ul><ul><li>6000 jobs are generated a year </li></ul><ul><li>Production MTND 4598 </li></ul><ul><li>Added value 30% </li></ul><ul><li>Annual Investments MTND 188 </li></ul><ul><li>Exports MTND 3264 ( 47% of the total manufacturing exports) </li></ul><ul><li>Imports MTND 2384 (Fabrics constitute 60% of imports) </li></ul>Textile & Clothing Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  65. 65. Breakdown of Textile Companies by Sector Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  66. 66. 2nd supplier for external clothing to Italy 4th clothing supplier Tunisia’s Ranking 5th textile customer of the EU 1st clothing supplier for town trousers to the EU to EU Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  67. 67. 7 weeks Tunisia 10 weeks Central / Eastern Europe 12 weeks Latin America Time allocated for Garment Industry   Source : L’Observatoire du Textile et de l’Habillement (France) Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  68. 68. …… .. from subcontracting to project implementation……. BENETTON (Italy) Over 60 subcontractors in Tunisia (3500 jobs) Manufacturing Plant in 1995 Extension in progress  production and distribution base Success Stories Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  69. 69. <ul><li>Ready-to-wear clothing </li></ul><ul><li>Yarn production to meet the local demand </li></ul><ul><li>High quality ready-to-wear apparel </li></ul><ul><li>Fabric production for off-shore clothing companies </li></ul><ul><li>Hosiery development </li></ul>Profitable Niches Investment Premium : 20% for weaving, spinning and dyeing activities Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  70. 70. Packaging <ul><li>230 op e rati ng companies, wholly or partially export ing . </li></ul><ul><li>A know -how and a high quality level </li></ul><ul><li>76% of the total production: paper, paperboard and plastic packaging </li></ul><ul><li>Good potential of the Tunisian market: 10% growth per annum. </li></ul><ul><li>Manpower availab ility </li></ul><ul><li>20% State premium for recycling projects which require high technology levels </li></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  71. 71. Produ c t: Corrugated Cardboard boxes Product Un it : order of 10 000 boxes Fefco 201, 400x300x300 mm Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  72. 72. Product: Moulded plastic Plastic Yoghourt pots: Unit: 1000 yoghourt pots of 125 grs Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  73. 73. Product: Pharmaceutical Packaging &quot;Contract Packaging&quot; of tablets and capsules : Unit: a box board in bulk containing 96 packages of blister strips Unit costs of Production in EURO Source: Comparative study of Competitiveness per Product: IDOM/BCI 2002 Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  74. 74. The Upgrading Program in Tunisia Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  75. 75. Progress of the Upgrading Program About 2 278 Tunisian companies are involved in the Upgrading Program.  for a global cost of TND 2250 million  Granted premiums: TND 315 million - Foreign partners are participating in the capital of several of them (technology transfer, integration into their marketing networks). Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  76. 76. <ul><li>Partnerships and alliances </li></ul><ul><li>Subcontracting </li></ul><ul><li>Industrial and logistic platform for the region </li></ul><ul><li>Modernization within companies </li></ul><ul><li>Direct Investments : new enterprises, privatization, concessions... </li></ul>Opportunities Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  77. 77. Insight into FIPA Tunisia Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  78. 78. Set up since 1995 under the supervision of the MCIIE. Staff : 70 , including 6 overseas representatives, namely in Paris, Brussels, London, Cologne Milan & Chicago. Foreign Investment Promotion Agency
  79. 79. <ul><li>Contribution to the image building of Tunisia abroad </li></ul><ul><li>Attraction of FDI to Tunisia </li></ul><ul><li>Awareness campaign & Contact of foreign companies </li></ul><ul><li>Supporting foreign investors during all the steps of their </li></ul><ul><li>projects’ implementation   </li></ul><ul><li>Assistance to foreign companies established in Tunisia </li></ul>Missions Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  80. 80. Source : July-August 2001 issue of Corporate Location Magazine - Euromoney Group. http://www.investintunisia.com ranked in the 12th position among the top 50 IPA websites in the world . I
  81. 81. The Tunisian case <ul><li>To sum up, I would say that : </li></ul><ul><ul><ul><li>the Tunisian experience in the field of attracting FDI, transfer of technology and know how can be considered as a successful example by other countries seeking for FDI and of course appropriate strategies to ensure the required transfer of know-how and technology in order to enable them to become more and more competitive. </li></ul></ul></ul>Oct. 15-17 , 2002 Foreign Investment Promotion Agency
  82. 82. Thank you for your attention... Oct. 15-17 , 2002 Foreign Investment Promotion Agency

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