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AI: What is FIPA-Tunisia doing in order to hard-sell Tunisia’s<br />

competitive adv<strong>an</strong>tages to Tier One <strong>an</strong>d Two component<br />

suppliers?<br />

Khemiri: Targeted initiatives include sector-oriented selling<br />

points, increase of door-to-door contacts, opening new FIPA offices<br />

abroad (in addition to ones in Brussels, Cologne, London, Madrid,<br />

Mil<strong>an</strong> <strong>an</strong>d Paris), <strong>an</strong>d investing in staff training (joint programs with<br />

Europe<strong>an</strong> <strong>an</strong>d Asi<strong>an</strong> institutions to help master basic promotional<br />

techniques). FIPA has been certified ISO9001 since 2003.<br />

AI: What makes Tunisia popular as a base <strong>for</strong> m<strong>an</strong>ufacturing<br />

production?<br />

Khemiri: Tunisia is blessed with sound economic <strong>an</strong>d social<br />

stability reflected in a number of indicators. Tunisia attracts<br />

<strong>the</strong> largest number of Europe<strong>an</strong> comp<strong>an</strong>ies th<strong>an</strong> <strong>an</strong>y country<br />

from <strong>the</strong> south shore of <strong>the</strong> Mediterr<strong>an</strong>e<strong>an</strong>, as reported in <strong>the</strong><br />

Ernest & Young survey ‘National Industrial Strategy by 2016’.<br />

By maintaining its low cost, high quality alternative toge<strong>the</strong>r<br />

with <strong>an</strong> effective convergence of know how <strong>an</strong>d justin-time<br />

production, Tunisia is securing its position<br />

as <strong>an</strong> ideal place to develop businesses that<br />

produce higher value export products.<br />

In addition, Tunisia is well known <strong>for</strong> its<br />

pleas<strong>an</strong>t living conditions, a signifi<strong>c<strong>an</strong></strong>t<br />

selling point when selling <strong>the</strong> economy<br />

as a suitable place <strong>for</strong> investments in<br />

<strong>the</strong> Mediterr<strong>an</strong>e<strong>an</strong> region. The 2010<br />

International Living Magazine r<strong>an</strong>ks<br />

Tunisia, <strong>for</strong> <strong>the</strong> second consecutive<br />

year, <strong>the</strong> top Arab country in matters<br />

of quality of life.<br />

AI: What are <strong>the</strong> strategic location<br />

adv<strong>an</strong>tages Tunisia enjoys in<br />

terms of tr<strong>an</strong>sportation, logistics<br />

<strong>an</strong>d distribution?<br />

Khemiri: Tunisia is at <strong>the</strong> heart of <strong>the</strong><br />

Euro-Mediterr<strong>an</strong>e<strong>an</strong> logistics chain near <strong>the</strong> main<br />

cities of Europe <strong>an</strong>d on <strong>the</strong> doorstep of a market of<br />

500 million consumers. Less th<strong>an</strong> <strong>an</strong> hour’s flight from Europe,<br />

Tunisia has eight international airports <strong>an</strong>d seven commercial<br />

ports which meet <strong>the</strong> st<strong>an</strong>dards of security <strong>an</strong>d rapidity. A logistics<br />

plat<strong>for</strong>m network is pl<strong>an</strong>ned in <strong>the</strong> near future <strong>an</strong>d will <strong>extend</strong> over<br />

<strong>the</strong> whole country.<br />

The World B<strong>an</strong>k’s 2010 report, ‘Connecting to Compete 2010’,<br />

r<strong>an</strong>ked Tunisia as <strong>the</strong> most efficient logistics country in North Africa<br />

<strong>an</strong>d <strong>the</strong> fifth most efficient logistics country among <strong>the</strong> lower<br />

middle-income countries according to <strong>the</strong> Logistics Per<strong>for</strong>m<strong>an</strong>ce<br />

Index (LPI). Tunisia is particularly well positioned in matters of timeliness<br />

by securing <strong>the</strong> 58th position out of 155 countries.<br />

Automotive Industries also asked Abdelkrim Dhouaifi,<br />

director Automotive/ICT Adv<strong>an</strong>ced Technologies at FIPA-<br />

Tunisia what some of <strong>the</strong> university <strong>an</strong>d industry collaborative<br />

opportunities <strong>for</strong> strategic automotive R&D are?<br />

Dhouaifi: Tunisia regards <strong>the</strong> mastery of knowledge <strong>an</strong>d technology<br />

as a crucial factor in economic <strong>an</strong>d social development.<br />

Consequently, <strong>the</strong> country is const<strong>an</strong>tly consolidating investment<br />

in knowledge by allocating eight percent of GDP to education <strong>an</strong>d<br />

1.25% to R&D.<br />

AI: What are some of <strong>the</strong> government legislation <strong>an</strong>d taxation<br />

incentives <strong>for</strong> <strong>for</strong>eign auto investors?<br />

Dhouaifi: The Investment Incentives Code (IIC) governs<br />

both <strong>for</strong>eign <strong>an</strong>d national investment, affirming <strong>the</strong> freedom to<br />

invest in most sectors except mining, energy, local trade <strong>an</strong>d<br />

fin<strong>an</strong>ce which are governed by specific legislations. The major<br />

investment incentives include total exemption from income<br />

tax <strong>for</strong> ten years <strong>for</strong> export revenues <strong>an</strong>d <strong>for</strong> five or ten years<br />

<strong>for</strong> projects located in regional development zones; gr<strong>an</strong>ts <strong>for</strong><br />

investment bonuses equal to eight, 15 or 25% (capped up to<br />

1MTND); state subsidies of employer’s contributions five years<br />

or more <strong>an</strong>d varying from total to partial assumption (100 to<br />

20%), <strong>an</strong>d state subsidies <strong>for</strong> infrastructure spending <strong>for</strong> projects<br />

in areas of regional development (25, 50 or 75%) of <strong>the</strong><br />

total cost.<br />

Tunisia also puts considerable emphasis on vocational training.<br />

The government may meet up to 50% of training costs incurred by<br />

comp<strong>an</strong>ies <strong>an</strong>d supports continuous skills development programs<br />

through a vocational training tax refund.<br />

AI: What are some of <strong>the</strong> automotive joint ventures <strong>an</strong>d<br />

strategic alli<strong>an</strong>ces that you would deem success stories in<br />

your country?<br />

Dhouaifi: Some of <strong>the</strong> automotive successful joint-ventures<br />

include Pirelli–STIP <strong>an</strong>d Johnson Controls – MZABI Group (mentioned<br />

in <strong>the</strong> introduction); Plastika Fr<strong>an</strong>ce provide technical support<br />

to GIF in filter m<strong>an</strong>ufacturing; Volvo <strong>an</strong>d SETCAR have a technical<br />

<strong>an</strong>d commercial partnership <strong>for</strong> bus assembling; The Les Industries<br />

Mé<strong>c<strong>an</strong></strong>iques Maghrébines (IMM) assembles pickups under <strong>the</strong><br />

ISUZU br<strong>an</strong>d using GM engines; <strong>the</strong> Jap<strong>an</strong>ese comp<strong>an</strong>y, NHK, is<br />

<strong>the</strong> technical partner of COTREL, producing laminated springs <strong>for</strong><br />

trucks; <strong>an</strong>d <strong>the</strong> French comp<strong>an</strong>y, RECORD, is a technical <strong>an</strong>d fin<strong>an</strong>cial<br />

partner of SIA in m<strong>an</strong>ufacturing shock absorbers.<br />

AI: What are some of <strong>the</strong> latest automotive investments<br />

in Tunisia?<br />

Dhouaifi: Some of <strong>the</strong> signs of dynamism in <strong>the</strong> automotive<br />

industry in Tunisia is <strong>the</strong> latest flow of new <strong>an</strong>d add-on investments<br />

by existing international comp<strong>an</strong>ies. In 2008 <strong>an</strong>d 2009, new projects<br />

helped turn car cable m<strong>an</strong>ufacturing in Tunisia into <strong>an</strong> attractive<br />

niche, including investments from <strong>the</strong> Jap<strong>an</strong>ese firms Sumitomo<br />

<strong>an</strong>d Yazaki; <strong>the</strong> construction of a second pl<strong>an</strong>t by Germ<strong>an</strong><br />

group, Draxlmaier; <strong>an</strong>d Kromberg & Schubert’s presence in Beja.<br />

76 to read full version of AI stories go to www.ai-online.com<br />

“<br />

Tunisia regards <strong>the</strong><br />

mastery of knowledge <strong>an</strong>d<br />

technology as a crucial<br />

factor in economic <strong>an</strong>d<br />

social development.<br />

”<br />

Abdelkrim Dhouaifi, director Automotive/ICT<br />

Adv<strong>an</strong>ced Technologies, <strong>the</strong><br />

Foreign Investment Promotion Agency<br />

of Tunisia (FIPA-Tunisia).<br />

AI

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