The Phosphate Cluster of Gabes-Report (1)

11/01/2017 The Phosphate
Cluster of Gabes
Outline and Recommendations for
future growth
ELABORATED BY HAYTHEM ABIDI
UNDER THE SUPERVISION OF M. HATEM MHENNI
ENGINEERING & TECHNOLOGY POLICY MASTER’S PROGRAM
2016/2017
National Engineering School of Tunis

1
Abstract
This paper aims to measure the impact of the Bouchemma Industrial zone growth, social and
economic impact on the region. Using a cluster approach, it identifies the main determinants of
the regional cluster, clarifies the nature of its network relations and interdependencies and gives
an overall hierarchy. This analysis should be based on a database inventory of empirical attributes
(Knowledge promotion, strategic management, R&D promotion, knowledge transfer, partnerships
and cooperation, government orientations & policies, PME’s, etc...). The challenge ahead lies in
the location and extraction of the data. Therefore, serious attention was given to the practical
methodology choice. A basic internet search and personal contact was carried to gather the support
database. The purpose of this study is to give a general anatomy of the region’s main revenue and
employment generator in order to determine its major strengths and weaknesses in term of
innovative performance. The study can be used as a support for future work in elaborating
development policies for regional competitiveness enhancement.
Résumé
Cet article vise à mesurer l'impact de la croissance de la zone industrielle de Bouchemma, ainsi
que l'impact social et économique sur la région. En utilisant l’approche Cluster, il identifie les
principales composantes du cluster régional, clarifie la nature de leurs relations de réseau et ses
interdépendances et donne une hiérarchie globale. Les principaux défis rencontrés dans ce travail
sont la collecte de données concernant les entreprises, leurs secteurs de production et
l'environnement de réseautage. Une recherche sur internet et un contact personnel ont été utilisés
pour rassembler la base de données de support. Le but de cette étude est de donner une anatomie
générale du principal générateur de revenus et d'emplois de la région afin de déterminer ses
principales forces et faiblesses en termes de performance innovante. L'étude peut servir comme
support aux futurs travaux d'élaboration de politiques de développement pour l'amélioration de la
compétitivité régionale.

2
Summary
Table of Figures .........................................................................................................................................................................3
Table of Arrays...........................................................................................................................................................................3
Introduction..................................................................................................................................................................................4
Chapter I: Industrial clusters................................................................................................................................................5
I. About industrial cluster ....................................................................................................5
II. Determinants of an industrial cluster................................................................................5
III. Performance......................................................................................................................7
IV. Cluster formation..............................................................................................................7
1. Policy................................................................................................................................8
2. Local environment............................................................................................................8
3. Entrepreneurs....................................................................................................................8
V. Clustering phases..............................................................................................................9
1. First phase.........................................................................................................................9
4. Second Phase ....................................................................................................................9
5. Third phase .....................................................................................................................10
VI. Cluster samples...............................................................................................................10
1. Developed countries: California wine ............................................................................10
2. Developed countries: Italian leather...............................................................................11
3. Developing countries: Morocco’s automotive cluster....................................................11
Chapter II: Measuring the clustering process in Gabes region.........................................................................13
I. Gabes region: overview..................................................................................................13
1. Geography ......................................................................................................................13
2. Population.......................................................................................................................14
3. Infrastructure ..................................................................................................................14
4. Platform for knowledge based economy development ..................................................14
II. Industry...........................................................................................................................15
1. Regional economic profile .............................................................................................15
2. Anatomy of the industrial cluster: focus on Bouchemma industrial zone......................16
Recommendations & General Conclusion..................................................................................................................23
References...................................................................................................................................................................................24

3
Table of Figures
Figure 1 Hierarchy of an industrial cluster......................................................................................6
Figure 2 Factors in the emergence of regional clusters (M.P.Feldman, J.Fransis) .........................7
Figure 3 Anatomy of the California wine cluster..........................................................................10
Figure 4 Anatomy of the Italian leather fashion cluster................................................................11
Figure 5 Morocco's automotive cluster map (B.M, K.S, J.E, R.B)...............................................12
Figure 6 Map of Gabes..................................................................................................................13
Figure 7 Politech Gabes Network of Associates...........................................................................19
Figure 9 Hierarchy of the Bouchemma industrial cluster .............................................................22
Figure 10 Enterprise distribution by sector in the industrial cluster of Gabes-Bouchemma ........22
Table of Arrays
Tableau 1 History of the Tunisian Chemical Group (TCG)..........................................................15
Tableau 2 State support shares to employer's CNSS payments, delegation of Mareth.................21

4
Introduction
The fluctuating economy of Gabes’s region provides both opportunities and challenges.
The region’s manufacturing capabilities has enormously felt the impact of post revolution socio-
political tornado. Yet, a newer economy has helped the region –on a relative scale- to recover
(health, construction, agriculture).
Still, it is essential to identify the region’s main revenue generator. The idea proposed is to
provide an overview of the region’s economy, propose a basic profile of the economy of Gabes
and examine the major industry sectors and clusters that make up its economy. The cluster analysis
method is proposed in accordance with the geographical and economical context of Gabes’s
industries.
The region is well known for its heavy chemical industries whom are interdependent and
sharing geographical proximity. The anchorage of the first heavy industry units in Bouchemma
created opportunities for employment in the region. Furthermore, it can be noticed today that
newer industries, small and medium enterprises were created and evolved around the same
geographical perimeter and thus generating more revenue, creating more employment
opportunities and bringing wealth to the region. This clustering process can should be given
attention by policy makers in order to formalize and create an adequate ecosystem for innovation
to take place within the cluster. Therefore, Policy makers should understand the nature of the
cluster, determine its major components and interdependencies in such a way that helps
understand and identify weaknesses and strengths to be dealt with in future policy development
plans. Therefore, this work tries to answer the following question: Did the installation of the first
Tunisian Chemical Group create a fully functioning industrial cluster in the region? To what extent
did the clustering process take place in Gabes?

5
Chapter I: Industrial clusters
I. About industrial cluster
Clusters are groups of inter-related industries that drive wealth creation in a region, primarily
through export of goods and services. The use of clusters as a descriptive tool for regional
economic relationships provides a richer, more meaningful representation of local industry
drivers and regional dynamics than do traditional methods. An industry cluster is different from
the classic definition of industry sectors because it represents the entire value chain of a broadly
defined industry from suppliers to products, including supporting services and specialized
infrastructure. (SDAG)
Cluster industries are geographically concentrated and inter-connected by the flow of goods and
services, which is stronger than the flow linking them to the rest of the economy. Within
regional clusters (a subset of Porter’s (1990, 1998) clusters), firms may operate more efficiently
and innovate faster due to sharing common technologies, infrastructure, pools of knowledge and
skills, inputs and responding to demanding local customers.
There is an increasing need for cluster-based data to support research, facilitate comparisons of
clusters across regions and support policymakers in defining regional strategies.
II. Determinants of an industrial cluster
In a wider sense, a cluster is a group of companies operating in the same chain or in the value
chain and associated institutions / organizations that face the same challenges and opportunities.
This group of companies are usually:
 Enterprises of the same productive sector.
 Anchored on the same territory.
 Maintaining cooperative relations (networks, consortium).
 Animated by a coordination structure.
 Supported by partnerships with local public actors.
 Implementing collaborative projects.
 Dealing with common problems and issues.

6

Products&
services
$$
Figure 1 Hierarchy of an industrial cluster
Domestic &
Global Markets
Cluster’s main determinants
- Buisines services - Manufacturer Industry
- Communication - Waste management
- Financial services etc….
Linkage industries
Industries providing factors of production for the cluster industries
and serving the local market
Income Investment
and taxes
Foundation and
potential forlocal
economy
Public/Private Infrastructure Support
Human ressources Capital finance Technology & R&D
Physical infrastructure Tax & regulatory environment

7
III. Performance
Clusters affect competition in three broad ways:
 First, by increasing the productivity of companies based in the area.
 Second, by driving the direction and pace of innovation, which underpins future
productivity growth.
 Third, by stimulating the formation of new businesses, which expands and strengthens the
cluster itself. A cluster allows each member to benefit as if it had greater scale or as if it had
joined with others formally—without requiring it to sacrifice its flexibility.
Moreover, being part of a cluster allows companies to operate more productively in sourcing
inputs; accessing information, technology, and needed institutions; coordinating with related
companies and measuring and motivating improvement.
IV. Cluster formation
A great deal of theories about cluster functioning exist today, a good perception and
understanding about how clusters can foster innovation, create wealth and employment in a
region. Yet, the question of how a cluster is started in a region persists. There is limited
understanding about how clusters form and develop and why they do in some regions and not
in others. The argument that three pillars for cluster formation is developed:
 Public gouvernance/ Policy
 Local Environnement
 Entrepreneurs
Figure 2 Factors in the emergence of regional clusters (M.P.Feldman, J.Fransis)

8
1. Policy
Policy and governance main objectives is in the heart of cluster determinants coordination and
enterprise creation. It eases the way for entrepreneurs for start-up creation and promotes self-
employment culture. Indeed, Alignment between regional development policies and strategic
national vision should be insured in the policy making process. Regional policy makers should
emphasize on the importance of beneficial risk taking through acts and programs, whether publicly
or privately funded or both.
2. Localenvironment
Taking the decision to start a business can be very complex to analyze and to give a generalized
theory about why it is concentrated in a certain agglomeration and not in another. Yet, it seems
rational to admit that certain environmental factors influence in a direct or indirect manner:
 Local resources: they vary from region to region, whether natural, human infrastructure or of
any kind. Identifying a regional strength is a necessary condition for certain business launchers.
 R&D, technological transfer institutions and central coordinating bodies: They operate in a
systemic manner to create, store, share and apply knowledge to local businesses through R&D
valorization programs, mobilizing partnerships and funds for innovative project creation etc.…
 Cultural aspect: This remains the most unmeasurable and unpredictable aspect. Surely, most
theories now imply that entrepreneurship is all about risk taking which can be seen as an intuitive
human behavior.
3. Entrepreneurs
Clusters may be conceived as ecologies of mutually dependent firm and institutions. The
entrepreneur exploits his local environment to further innovation and localized learning. It is obvious
to notice that each of the components listed previously positively reinforces the other, promoting
industry development and the evolution of a cluster. Once the incentives and the environment are
aligned, the result is a fully functioning industrial cluster that is able to sustain economic growth as
well as withstand adverse shocks.

9
V. Clustering phases
The following dichotomy of cluster formation process is presented:
1. First phase
In the earliest stages, there is little technology-intensive industrial activity. Although, a region may
have the type of human capital or prominent research universities that might be associated with an
industrial clusters, few start-up companies would exist. The movement from latent to active
entrepreneurship requires some shock possibly to the demand for entrepreneurs or traditional
business, whether private or public sector, as well as a reduction in the opportunity cost of
entrepreneurship. Once the initial entrepreneurial ventures have been sparked, the process of
entrepreneurship is a classic trial and error or learning-by-doing process (Zaltman, Duncan and
Holbeck 1973). (M.P.Feldman, J.Fransis)
4. SecondPhase
The second phase is dominated by increased entrepreneurial activity as an adaptation to a series of
changes in the external environment. During this stage, entrepreneurs defined resources to promote
and protect their interests. In this way, the independent actions of entrepreneurs are catalytic
components of a self-organizing system. Further, the cluster self- organizes around the
entrepreneurial activities. Entrepreneurial activity is 9 creative and innovative and therefore, the
specific needs of the entrepreneur cannot be predicted a priori, but develop over time as start-ups are
created and the needs are recognized. Once a critical mass of start-ups is in place, supporting
organizations are attracted. The organization of the cluster and the entrepreneurial ventures evolve
simultaneously and even symbiotically. Having the experience and example of the initial start-ups,
the industry becomes self-sustaining: entrepreneurs attracted physical and human capital to the area,
public and private networks built up to support and facilitate the ventures, relevant infrastructure was
created through public and private initiatives and services grew up to feed these companies. For some
regions, exogenous shock, such as corporate mergers and acquisitions may compact the industrial
sector into a small number of large multinational firms or a more research oriented cluster.
(M.P.Feldman, J.Fransis)

10
5. Third phase
The ultimate result is a fully functioning entrepreneurial environment within an innovative and
adaptable industrial cluster. The success of the initial start-ups, and the synergy between them,
generates new possibilities for further start-ups and new spin-offs. Networks of entrepreneurs, policy
makers, and secondary industry contractors spring up; universities, colleges and technical centers
recognize the need for high-tech trained personnel and offer programs to satisfy that demand. The
success and experience of the initial activity further generates local recognition of the nascent
industry. Local recognition, a reduction in risk, and more opportunities created by the initial
companies, contribute to more start-up activities. (M.P.Feldman, J.Fransis)
VI. Cluster samples
1. Developedcountries: Californiawine
The California wine cluster is a good example. It includes 680 commercial wineries as well as several
1000 independent wine grape growers. An extensive complement of industries supporting both wine
making and grape growing exists, including suppliers of grape stock, irrigation and harvesting
equipment, barrels, and labels; specialized public relations and advertising firms; and numerous wine
publications aimed at consumer and trade audiences. A host of local institutions is involved with
wine, such as the world-renowned viticulture and enology program at the University of California at
Davis, the Wine Institute, and special committees of the California senate and assembly. The cluster
also enjoys weaker linkages to other California clusters in agriculture, food and restaurants, and wine-
country tourism. (M.Porter)
Figure 3 Anatomy of the California wine cluster

11
Figure 4 Anatomy of the Italian leather fashion cluster
2. Developedcountries: Italian leather
Consider also the Italian leather fashion cluster, which contains well-known shoe companies such as
Ferragamo and Gucci as well as a host of specialized suppliers of footwear components, machinery,
molds, design services, and tanned leather. (See the exhibit “Mapping the Italian Leather Fashion
Cluster.”) It also consists of several chains of related industries, including those producing different
types of leather goods (linked by common inputs and technologies) and different types of footwear
(linked by overlapping channels and technologies). These industries employ common marketing
media and compete with similar images in similar customer segments. A related Italian cluster in
textile fashion, including clothing, scarves, and accessories, produces complementary products that
often employ common channels. The extraordinary strength of the Italian leather fashion cluster
can be attributed, at least in part, to the multiple linkages and synergies that participating Italian
businesses enjoy. (M.Porter)
3. Developing countries: Morocco’s automotivecluster
The automotive industry in Morocco has grown into a substantial cluster, which by 2013 had a
vehicle production of 167,000, €2.8 billion in exports, 85,000 employees and over 200 companies.
The cluster is mostly based in the Casablanca Industrial Zone and the Tangier/Kenitra free zones.
These zones offer fiscal incentives and have strong infrastructure (a modern road network and
state-of-the-art ports). The cluster benefits from geographical proximity to large European

12
consumer markets and the potential to function as a gateway to emerging markets in North Africa
and the Middle East. The main player of the cluster is Renault, which owns 80% of the Casablanca
plant and is the only manufacturer in Tangier. The cluster is significantly integrated into the local
economy. 43% of car parts are sourced from local suppliers, including electronic components,
plastics and metals. Exhibit 7 shows all the major suppliers. Renault uses these parts supplied to
builds Logan, Tandero, Kangoo, Lodgy and Dokker cars, as well as its cheaper brand Dacia. Some
of the car parts made in Morocco are exported to other car manufacturers in Europe. Figure 5
provides the cluster map, showing all major actors in the automotive cluster. Educational institutes
play an important role to train the workforce with the appropriate skills for the automotive
industry, which is necessary to overcome the current skill gaps. Government agencies and public
investment funds have been important for the initial growth of the cluster (as addressed in more
detail in the next paragraph). Institutes for collaboration facilitate the creation and implementation
of a common strategy among different actors, and diffuse knowledge and best practices in the
industry. (B.M, K.S, J.E, R.B)
Figure 5 Morocco's automotive cluster map (B.M, K.S, J.E, R.B)

13
Chapter II: Measuring the clustering
process in Gabes region
I. Gabes region: overview
The fluctuating economy of Gabes’s region provides both opportunities and challenges. The
region’s manufacturing capabilities has enormously felt the impact of post revolution socio-
political tornado. Yet, a newer economy has helped the region –on a relative scale- to recover
(health, construction, agriculture).
1. Geography
The region of Gabes is located in the south-east of the country and in the middle of the
Mediterranean, constituting an important linkage between the South-East and the rest of the
country, which helped develop a flow of exchange with its national and international
environment. It is bounded on the east by the Mediterranean (a coast of 80 km), on the west by
the governorate of Kebili, on the north-east by the governorate of Sfax, on the north-west by
the governorate of Gafsa and at the south by the governorate of Medenine. Gabes extends over
7166 km² (4.6% of Tunisia’s total surface) and benefits from 80 km of cost.
Figure 6 Map of Gabes

14
2. Population
370 803 people live in Gabes. 97 832 are considered as occupied working age population (24.7%)
and 62.2% of the whole population live in urban areas. The region has the 4rth lowest
unemployment rate following Tunis, Sousse and Sfax.
3. Infrastructure
Gabes benefits from a relatively strong and diverse infrastructure which consists of:
 Commercial port approximately 12m deep (the deepest in the nation).
 Gabes-Matmata international airport with a capacity of 200,000 passengers.
 A rail network with a length of 135 km (linking Gabes to Gafsa, Sfax, Sousse and
Tunis).
 Highway linking Sfax to Gabes over a length of 152 km.
4. Platform for knowledge basedeconomydevelopment
a. Human resources
Gabes is privileged with its high qualified human resource asset consisting of:
 19129: Students (Gabes: 17181, Medenine: 1799, Tataouine: 149),
 1620: Teachers Researchers (Gabes: 1422, Medenine: 184, Tataouine: 37),
 4584: Graduates of higher education,
 7 public vocational training centers,
 59 private vocational training centers,
b. Researchand Development
Gabes is also well equipped in terms of R&D institutions, they include:
 1 Multi-sectoral industrial and technological center,
 1 Technical center for geothermal and greenhouse crops,
 1 Station of the National Institute of Rural Engineering, Water and Forests,
 1Station of the National Institute of Sciences and Technologies of the Sea,
 1 Regional Directorate of the Institute of Arid Regions (IRA),
 14 Research Units,
 2 Research Laboratories,
 1 Doctoral School.

15
II. Industry
1. Regionaleconomic profile
Gabes Governorate is home to diversified economic activity, including an important industrial sector
specialized in the chemical industry. Following many years of raw phosphate exporting, the Tunisian
government undertook to process phosphate ore and to exploit it in a more profitable oriented way.
This brought to the creation of a domestic industry for phosphoric acid and fertilizer production,
eventually resulting in the “Tunisian Chemical Group” (GCT)-TCG is considered the region’s main
revenue generator and its major employment source-which is the result of the merger and absorption
of some five companies occurring between 1952 and 1992 as indicated in the following table
Tableau 1 History of the Tunisian Chemical Group (TCG)
Startup of TSP plant in SFAX under the name of SIAPE
Startup of Acid (MGA) plant in GABES under the name of ICM
Startup of the DAP plant in GABES under the name of SAEPA
Startup of the AN plant by SAEPA
Startup of ENGRAIS DE GABES (EG) for the production of DAP in GABES
Creation of Industrie Chimique de GAFSA (ICG) for TSP production at M'DHILLA
Creation of the SKHIRA plant for the production of Phosphoric Acid and MGA
Absorption of ICM, EG and ICG by SIAPE
Merger of SIAPE and SAEPA and creation therefore of GCT
Merger of Chairmanship of CPG and GCT by appointing a single common Chairman
and General Manager
Merger of commercial structures of CPG and GCT.

16
Today, the region more than 110 industrial enterprises employing 8749 workers, 18 of them are export
oriented fully operating companies that employ almost 5500 person.
2. Anatomy of the industrial cluster:focus on Bouchemma industrial
zone
The zone is the largest functioning zone in the region in terms of GDP contribution. It is the
home of major industrial complexes for the transformation of Tunisian phosphates and related
activities: GCT, Alkimia, FCI, Salkta Fertilizers... it also incubates a decent number of small and
medium enterprises providing direct services, products and related activities. This group of
enterprises are coordinated by the mean of a central coordinating body “Poyltech Gabes” whose
activities and interest will be detailed below.
a. Large manufacturer industries
The zones main sector of productivity is phosphate transformation and related derivatives. The
largest manufacturer companies anchored in the region are:
 Tunisian Chemical Group: The group includes the phosphoric acid production company ICM created
in 1972, Diammonium phosphate/Ammonitrate production company SAEPA created in 1979 with
an annual capacity production for D.A.P of 1 015 000 Tons/year and an Ammonitrate production
capacity of 150 000 Tons/year.
 Alkimia: Totally exporting company created on September 26, 1972 and started its production of
Tripolyphosphate Technical Sodium in 1976. Alkimia processes phosphoric acid obtained from TCG
in order to produce TTS.
 Timab: With two plants created in 2003 and 2008, TIMAB processes and bags phosphate bought from
the TCG for animal nutrition with a total annual production capacity of 270 000 Tons/year.
 Fluor Chemical Industries : Founded in 1971 and started production of Aluminum
fluoride in 1976 for local and global markets. In 2009, FCI started the production of Anhydrite
destined for the consumption of local cement factories (Cement of Gabes factory in particular). This
company utilizes sulfuric acid bought from the TCG in order to produce Aluminum fluorine.
 Salakta fertilizers: Created in 1998, this company is specialized in the production of nitrogen
fertilizers for agricultural use. Its main products are powder TSP (Triple Super Phosphate) and SSP
(Single Super Phosphate) directly obtained from the TCG.

17
 Mediterranean Food Industries: MFI is a fully exporting company, which started on May 7,
2007; its export turnover has progressed gradually. MFI, employs more than 200 people including a
large number of graduates,it exports to more than 20 countries in North Africa, Europe, Asia, Middle
East. The company’s major products are Bi calcium phosphate 18, mono dicalcium phosphate 20/20
and mono-calcium phosphate. All of which are used in the animal nutrition sector. MFI is an
innovative company that holds its own patent in phosphate processing and can be considered as a one
of a kind in the Mediterranean basin.
b. SME’s and linkage industries
This category of industries play an important role within the cluster. They provide vital services and
products to the existing heavy industries. Their existence and prosperity rely essentially on the
functioning of the surrounding industries. Although some of them do not only interact with
companies from inside the cluster, all of the enterprises cited below network with its surrounding
cluster neighbors. They can be categorized by their production sector as follows
Energy
STEG: Central power plant and a liquefied Gas & Petrol station for hydrocarbon storage and
diffusion. Since the TCG produces its own energy, STEG buys excess electricity produced by the
Chemical Group and they rely on each other in case of failure.
SAGAZ: specialized in the compression and distribution of Butane and Methane gas for domestic use.
SAGAZ is a private commercial agent that interacts with STEG GPL.
Construction
2A2M, BMS, EMO, ETIP, G2I, GTI, LES TROIS, SGTI, SEEMIM, SIS, SOMATEC,
STSI: These companies are specialized in providing construction services for industrial installations
such as: reservoir construction, steel welding, piping, mechanically welded structures, industrial steel
plants…
SOMATRASM: specialized in maritime and hydraulic works, the company provides services for the
commercial port of Gabes such as sediment dredging, underwater works and canalizations.
Sud Bitume: created in 1993 is a company specialized in manufacturing and marketing of
bituminous products located in Gabes.

18
Maintenance, Transport and Industrial services
- ELENCO, Sti EZZI maintenance, GMS, Ste Hajjaji Issam, S2M, SOSIS, SEZAG: Installation,
inspection and maintenance of industrial equipment.
- SOHATRAM, SGTM, GTSP, HFTS, STTV, and YAHYA Transport: merchandise
transportation services for various industries.
- MFGT: they specialize in Industrial maintenance and assembly of factories, Electrical
maintenance, Manufacture of railway equipment, manufacture of containers, metal frames.
Environment
- SOTUGED: Specialized in diverse industrial waste management and valorization.
c. Industrial & Technological pole of Gabes
The very existence of the pole plays a deterministic role in boosting the region’s competitiveness.
Created in 2010, the company aims to strengthen the regional and national economy through
technological content that is innovative, friendly to the environment and economical in terms of
energy. Politech-Gabes is a public private partnership (PPP) under the legal form SA (societé
anonyme) and it holds a share capital of 5 million dinars. POLITECH Gabès, directs its missions &
projects to the following Strategic Intervention Areas (DIS):
 Eco technologies (Water, Chemicals-Environment and Waste Recycling).
 Renewable Energies.
 VALORIZATION OF RESOURCES (Useful substances, products of the Oasis).
 Building materials, Building materials.
 GEOTHERMIA applied to agriculture.
 Promotion of ITC, logistical services, handicrafts & eco-tourism.
Although the pole’s work is quite recent and cannot be measurable to some extent, promising
initiatives are being made showing proof of good scientific policy practices. The poles identifies the
region’s strengths and weaknesses and works toward building a regional knowledge economy through
various tools and programs.

19
Figure 7 Politech Gabes Network of Associates
Activities
 Creating a collaborative platform for innovation & development -MED OASIS VALLEY network:
The pole creates a network between enterprises, project idea holders, R&D institutions and the
support structure. This facilitates startup creation through positive networking of the entrepreneur and
major partners (universities, support structures and industrialists). It also offers the opportunity to
register with the IdeaGeneration Club and participate in the Best Innovation Project in Gabes" contest.
Finally, it enables project idea holders develop research projects with high economic spin-offs, up to
their phase of Industrialization and marketing.
 Innovation and technological transfer: the pole offers the following services to enterprises and
entrepreneurs in the region:
- Identify and formulate needs in terms of technology.
- Transform ideas into innovative projects in collaboration with partners (Laboratories and research
units, technical centers ...).
- Identify and mobilize partners and funding.
- Promote R&D results to the industrial world.
- Set up and manage collaborative projects aligned with strategic axes.
 Politech-Gabès has set up a strategic monitoring system that aims to Collect, process and disseminate
relevant information to MED OASIS VALLEY network, strengthen the synergy of our network by
bringing together companies, project promoters, academic institutions able to generate ideas for

20
collaborative projects eventually fueling the innovation process and keeping pace with the strategic
axes of the cluster.
 Cluster support: mobilizing and networking scientific expertise, entrepreneurs within the network
is the main approach that Politech-Gabes adopts for cluster animation. Round tables and
brainstorming activities have produced tremendous flux of innovative ideas and projects to be built
in the future that strengthen up the cluster’s integrity.
 Development of industrial zones: Politech-Gabès Industrial and Technological Pole has 4 support
sites currently being finalized. Each site is composed of a production area and a living center.
- El Hamma (15 Ha)
- Menzel Lahbib (9 Ha)
- Matamata New (25 Ha)
- Bouchemma (10 Ha)
d. Local Government intervention
The local government specified advantages of regional development in Gabes in the delegation
of El Hamma, Menzel El Habib, New Matmata and Matmata classified as priority regional
development zones:
- Investment premium waiver: 25% of total investment, including working capital with a limit
of 1,500,000 DT. For new promoters this waiver is 30% with a limit of 2,000,000 DT.
- waiver for state participation in infrastructure expenditure: 85% of the amounts committed to
the company.
- Contribution to the employer's to the statutory social security scheme Payment (CNSS): State
support of this contribution during the first ten years from the date of entry into actual activity.
- For services related to culture: creation of a theater company: 8% of project cost waiver
excluding cost of land.
- For leisure-related services: (Recreation parks for families and children - Residential and
camping centers - Recreation parks): 15% of project cost waiver excluding land
For the Mareth delegation classified in the regional development zone of the 2nd Group:
- Investment premium: 15% of total investment, working capital included with a limit of
1,000,000 DT.
- Waiver for state participation in infrastructure expenditure: 75% of the amounts committed to
the company.
- Contribution to the employer's to the statutory social security scheme Payment (CNSS): State
support of this contribution during the first five years from the date of entry into effective

21
operation and a share of that contribution for an additional period of five years fixed as
follows:
Tableau 2 State support shares to employer's CNSS payments, delegation of Mareth
Year concerned with state support State support share
First year 80%
Second year 65%
Third year 50%
Fourth year 35%
Fifth year 20%
Projects:“Primeurs du Sud”
A new Cluster "Primeurs du Sud" was initiated by Politech Gabès with the support of PASRI and is
part of the national strategy of the Ministry of Industry for the development of the clustering approach
in the potential territories of Tunisia. This cluster was created in Gabes in the form of an association
of Tunisian law, on October 6, 2015, on the initiative of 13 founding members composed of: 6
companies (Zina Fresh, Sanlucar, DesertJoy, Server, Gaprim, GeoProduction) , 4 farmers, including
2 members mandated by about 20 farmers operating in geothermal early-growing crops in Elhamma
Gabès and 3 associated organizations (Politech Gabès, URAP and CTCPG). Driven by the will to
sustainably utilize the geothermal potential of Gabes in the agricultural sector, the cluster emphasizes
on the networking of companies and farmers working in the field of early cultivation, and having the
will through the "cluster" concept. The aim is to jointly develop new markets, both local and export,
and to participate in various joint projects aimed at improving productivity, quality, competitiveness
and innovation for the benefit of cluster members.

22
Figure 8 Hierarchy of the Bouchemma industrial cluster
Figure 9 Enterprise distribution by sector in the industrial cluster of Gabes-Bouchemma
33%
22%
22%
2%
21%
Enterprisedistribution by sector
Construction
Transportation
Installation, Inspection and
Maintenance
Environment
Large industries

23
Recommendations & General Conclusion
The implantation of the first Tunisian Chemical Group production units in Bouchemma-Gabes
triggered a domino’s effect in terms of business creation. The existence of the first industries
opened opportunities for entrepreneurs in various sectors thus producing the detailed outline
above. However, the regional cluster still needs further improvements. In order to enhance the
competitiveness of the cluster, the following recommendations are formulated:
 R&D has so far not been a focus of the cluster until lately. However, in order to make the
cluster more competitive and make it harder for other competing countries such as Morocco,
Gabes should invest in R&D (starting with applied R&D) and incentivize entrepreneurship.
Gabes should therefore strongly support the development of research institutes in partnership
with foreign companies and universities. Public funding should be provided with transparency
on the outcomes. Commercialization of innovations should be made through start-ups
incubated by these research institutes.
 Almost a third of the PME’s installed in the cluster (33%) are in the construction industry,
particularly industrial construction. Not to mention the existing civil engineering and
construction related enterprises anchored and operating in the region. Gabes today stands as a
vital linkage point for southern Tunisia providing material and construction services for major
construction projects for Gabes, Medenine, Tatouine, Tozer.. This is industry has been rapidly
growing and that is a major strength of the region. It can be explained by the knowledge and
expertise gained by local entrepreneurs from previous experience in large construction
companies (Bouchemaoui industries, Ben kilani enterprise...) whom are installed and
operating in the region for a decent period of time. Furthermore, the abundance for natural
resources and the strategic location of Gabes in the national map has made it an ideal business
opportunity for cement and cement related products, quarries, civil engineering entrepreneurs
and so on…This sectarian growth can be boosted and exploited, using the same cluster
approach, by creating a construction cluster in the region, defining the industry as a major axis
for R&D and incentivize innovation through adequate Sciences, Technology and Innovation
policies and practices in order to make the region stand as a leading pole for construction
services on a regional, national and even international scale.
 Facilitate and support the development of ICT companies intending to install in Gabes region
and develop a competitive offer in the field of ICTs to meet the demand of local and national
companies and institutions.

24
References
 San Diego Association of Governments. Understanding Cluster Analysis.
www.sandag.org/rta/transfer/industrial_clusters.pdf
 Maryann P. Feldman, Johanna Francis. Entrepreneurs and the Formation of Industrial
Clusters. www.cs.jhu.edu/~mfeldman/Feldman%20-EFIC.pdf
 Micheal Porter (1998). Clusters and the new economics of competition, Harvard
Buisiness Review. https://hbr.org/1998/11/clusters-and-the-new-economics-of-competition
 Benjamin Maturana, Kinley Salmon, Juan Espinosa, Ruben Brekelmans (2015). The
Automotive Cluster in Morocco. Competitiveness and
recommendations for future growth: Harvard Business School.
 Tunisian Chemical Group official website: http://www.gct.com.tn/

The Phosphate Cluster of Gabes-Report (1)

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (13)

Similar to The Phosphate Cluster of Gabes-Report (1)

Similar to The Phosphate Cluster of Gabes-Report (1) (20)

The Phosphate Cluster of Gabes-Report (1)