Investing in ICT in Tunisia
Content
Why Tunisia?
4
A modern and liberal economy, open to the World
A well thought-out ICT strategy
A regional ICT hub
4
Expansion of the ICT sector
10
Tunisian software firms continual expansion and achievements
A dynamic sector Constant investments A sector open to foreign markets
State-of-the-art technologies and skills 6
7
10
11
11
12
12
Qualified human resources
14
A higher quality of education
A young and qualified population Knowledge society
14
A modern and reliable infrastructure 18
18
Telecommunication infrastructure
Technological parks, cyber parks and real estate infrastructure
14
15
19
Investment: an emerging sector
24
24
Support to ICT start ups
Software firms’ support
Investment advantages
Direct Foreign Investments
Legislative environment for ICT
24
25
25
26
An open country where you can enjoy life
28
A strategy for strengthening Tunisia’s advantages
32
Contact
34
We have accorded a special place, in our program for the future, to the building of the
society of knowledge and technological innovation, based on our conviction that no
progress or development can be achieved without mastering, adapting and benefiting
from modern technologies, in a way that consolidates the foundations of the new economy and expands the prospects of employment and integration in professional life.
In line with this orientation, we give instructions for launching, as a first phase, the
establishment of a technological space, over an area of 200,000 sq. meters, in accordance with the most advanced international standards in terms of equipments and basic
facilities. This will consolidate the capacity to attract internationally renowned institutions operating in fields with high knowledge content.
We also give instructions for preparing a program to promote training and the certification of qualifications, as part of partnership with the largest specialized international institutions and the certified training centres. This program will cover, in a first
phase, ten thousand young people who will obtain certification in the fields of software
development, project leadership, network management, and computer security.
To enhance the pace of investment in the sectors with high technological content, we
give instructions for establishing a coherent strategic plan, with the participation of
national competences at home and abroad, and in cooperation with specialized international institutions, to promote our country into a regional hub for promising activities
with high employability for university graduates.
Zine El Abidine Ben Ali
President of the Tunisian Republic
swearing in address, 12 November 2009
Investing in ICT in Tunisia
« President Ben Ali explained to me clearly the strategy adopted by Tunisia
in the field of ICT, a vanguard strategy that captivated me. Microsoft should
give full support to this project putting at its disposal all its know-how in both
technological and pedagogical areas” [...].”Tunisia’s wealth rests on the brains
and skills of its people »
Steve Ballmer, CEO, Microsoft.
Why Tunisia ?
Tunisia’s many advantages attract the most important multinational companies in the ICT sector.
Some examples include Microsoft, SAGEM, Orascom, TeCom-DIG, France Telecom, Cisco Systems,
HP, ALTRAN, ADP, Alcatel Lucent, HR Access, Huawei Technologies, Siemens, STMicroelectronics and
Sunguard.
In view of these advantages, international firms have been attracted to set up production development sites, regional centers and regional technical support centers. Foreign investors are attracted
by Tunisia’s many advantages in terms of its well defined strategy, the quality of its human resources,
and its geographical position,
Thus, Tunisia has gradually confirmed its place as a regional ICT hub and a favorable site for the
growth of ICT firms, both locally and globally.
A modern and liberal economy, open to the World
Tunisia was ranked 40th in the world in terms of total competitiveness and growth
The growing importance of its liberal economy makes Tunisia, ranked by the 2009-2010 report of the
World Economic Forum, (www.weforum.org) 40th, in terms of total competitiveness and growth,
thus preceding several industrialized countries. Tunisia is also ranked first in Africa, preceding South
Africa, Mauritius, Egypt and Morocco.
This ranking is established on the basis of 12 qualitative and quantitative criteria: institutional environment (legal and administrative context), macro-economic stability, infrastructure, health and
primary school education, innovation, market efficiency (financial, labor and goods), technological
capacity, size of the market, complexity of business and higher education and training.
Tunisia is ranked 7th in the world in terms of the quality of scientific higher education; 9th in terms
4
Why Tunisia ?
of availability of scientists and engineers; and 5th with regard to good management of public
expenditure. Thanks to its economic success, Tunisia earned the following investment gradings: BBB
(Standard & Poor), Baa2 (Moody), BBB+ (Fitch-IBCA) and A- ( R&I).
Rank
Country
Score
2
USA
5,59
7
Germany
5,37
16
France
5,13
40
Tunisia
4,50
43
Portugal
4,40
45
South Africa
4,34
46
Poland
4,33
47
Slovakia
4,31
48
Italy
4,31
58
Hungary
4,22
64
Romania
4,11
70
Egypt
4,04
73
Morocco
4,03
Source : Davos World Economic Forum
Table 1 : Report on global competitiveness 2009-2010
Openness of investment and income transfer
In Tunisia, investment is open to nationals and foreigners in the majority of industry sectors. A foreign
investor can hold up to 100% of the capital of the project without authorization in most sectors.
Foreign investors profit from a guarantee of transfer of the invested capital income: dividends,
attendance fees etc.
Business opportunities
Tunisia has many business opportunities in its national market as well as with countries from Africa,
the Middle East and Europe.
Many opportunities exist within the framework of privatization of public markets and licenses make
it possible for various well known ICT companies to settle in Tunisia: TeCom-DIG, France Telecom,
Orascom, Siemens and Alcatel Lucent.
Moreover, since the beginning of 2007, a law was promulgated encouraging administrations, state
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Investing in ICT in Tunisia
enterprises as well as local communities to outsource their data processing to the private sector.
It is within this framework that SITA, a world leader in ICT solutions for aeronautics, created a joint
venture with Tunisair.
A well defined ICT strategy
Conscious of the importance of the role which can be played by the ICT sector in economic and social
development, Tunisia was one of the first countries in Africa and the Middle East to define and set up
an ICT strategy.
The ambitious ICT strategy involved:
• Development of human resources
• Reform of the regulatory and institutional environments
•The improvement of infrastructure in terms of networks, equipment and services
• ICT use
• Business growth
The ICT sector: A major axis of Tunisian strategy
The main focus of Tunisian ICT strategy encompasses information technology (IT), and more particularly, software industry technologies, services and multimedia. Indeed, the 11th Economic and
Development Plan (2007-2011), has envisaged for ICT, an annual growth of 17% and a 13.5% contribution
to the GDP at the end of 2011. In 2008, the participation of the ICT sector in the GDP was 10%.
Considering the importance of the information society, Tunisia proposed in 1998, during the
Plenipotentiary Conference (Minneapolis, 1998) on the role of the ITU, the implementation of a World
Summit on the Information Society (WSIS).
World summit on information society: a bright success
In Tunis, consensus and commitment to ensure equitable access to information was achieved.
(Extracts from the ITU press release)
The second phase of the WSIS was held in Tunis on November 16th - 18th 2005. Indeed, and as it was recalled
by Mr Utsumi, General Secretary of the ITU in his closing speech - “It is fitting that this stage of our journey ends
here in Tunis, the capital of the country that launched this process seven years earlier at the Plenipotentiary
Conference of the ITU in Minneapolis.”
Described as a significant success by the delegations of 174 states and the participants of more than 800 entities that included organizations of the United Nations, private sector companies, and civil society organizations,
the Summit dealt with the issue of the “digital divide” and on the potential of communication and information
technologies (ICT) to promote economic and social development.
6
Why Tunisia ?
A regional hub
Tunisia, a regional ICT hub
In addition to its privileged geographical position,
in the middle of the Mediterranean and half way
between Europe, sub-Saharan Africa and the MiddleEast, Tunisia has trade agreements relating to the
introduction of free exchange zones and preferential
trade.
The strength of its economy and the renowned quality of its products and services in many markets makes Tunisia a privileged location for companies that
intend to set up and build their ICT activities and an
advanced base for their firms.
Tunisia at the crossroads of Europe, the Middle East and Africa
A privileged partner of Europe
Tunisia is a privileged partner of the European Union.
It is centrally located in the Mediterranean and therefore has close social and cultural ties and economic
co-operation agreements with Europe.
Tunisia is the first country on the southern bank of
the Mediterranean to have ratified the partnership
agreement and the free trade agreement with the
European Union in 1995. Implemented in 1996, this
agreement established a free exchange zone.
Source : National Institute of Statistics / Tunisia
Figure 1 : Tunisian exports to the European Union market
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Investing in ICT in Tunisia
Euro-Mediterranean zone
Tunisian exports to the European Union market have witnessed constant growth. Overall exports grew
from 51% in 1976 to 80% in 2008.
Arab countries’ markets
Tunisia is bound by preferential agreements with the Maghreb and Arab countries. The implementation of the regional agreement established in 1998, instituting the Arab free exchange zone, is
largely advanced.
The bilateral agreements instituting a free exchange zone with Turkey, Egypt, Morocco, Jordan, Iraq and
Libya govern exchanges with these countries. Other free trade agreements are being negotiated with
various countries in the region.
Source : National Institute of Statistics / Tunisia
Figure 2 : Tunisian exports to Arab countries
African countries markets
Tunisia has preferential trade agreements with several African Countries. (www.cepex.nat.tn).
Consulting and ICT companies are acting in several African Countries, in North Africa
and Sub - saharian Africa. Tunisian products and services are very well appreciated there.
The range of services provided by Tunisian companies in Africa is varying from feasibility studies, to
project design, achievement, and implementation, etc
8
Why Tunisia ?
Other markets: A preferential situation with the world powers
Tunisia benefits from tariff reductions with Japan, Canada, the United States, Switzerland and Australia
that are authorized within the framework of the Generalized System of Preferences (GSP) for various
products.
STMicroelectronics :
AN R&D CENTER SPECIALIZING IN MICROCONTROLLERS AND DIGITAL TV
A multinational company subject to Dutch law, STMicroelectronics was created in 1987 through the
merger of the Italian company SGS and the French company Thomson Semiconductors. STMicroelectronics is one of the leading global players in development and production of semi conductors.
With 16 R&D units and 39 design and application centers employing more than 45,000 people,
STMicroelectronics has achieved a turnover of 2.3 billion euros in 2008, representing 4% of the
market share worldwide. STMicroelectronics is a leader in the market segments in which it operates
and in particular circuits for MPEG video encoders/decoders, mobile phones circuits and automation
circuits. It has over 1,500 customers which include: NOKIA, SONY, HP, SAMSUNG, BOSCH, SIEMENS
and SAGEM.
STMicroelectronics started operations in Tunisia in 2001 through the R&D center specializing in
microcontrollers, digital TV and digital decoders. Because of the quality and availability of human
resources, the Tunisian operation of STMicroelectronics has rapidly increased from 8 to
250 engineers and has specialized in high quality products with very short notice. This site was also
certified ISO TS in 2004.
The company’s Tunisian operation has always kept its key advantages: availability of highly skilled
human resources, highly competitive cost, geographical and cultural proximity, infrastructure,
transparency, political, economic and social stability, fiscal benefits etc.
«The proximity of Europe, language, qualified engineers and a very good system of incentives encouraging the recruitment of young graduates are strengths in the development of STMicroelectronics
Tunisia.”
Hichem Ben Hamida, General Manager, STMicroelectronics, Tunisia
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Investing in ICT in Tunisia
«There are high level companies in Tunisia capable of developing very high performance computer systems. It has not been necessary to train staff. We simply combine our various skills. Certain
activities are handled through co-contracting, for example, development of high level computer
applications. »
Marc Rossi, President Director General, Cyberg Systems
Expansion of the ICT sector
Continuous expansion and achievements of Tunisian software firms
ICT and more particularly the software industry, services and multimedia stand out as the
main focus of Tunisia’s ICT development strategy.
The sales turnover of Tunisian software firms recorded an average growth of 16% during the
last 5 years.
Export turnover has been constantly increasing, rising from 20% in 2001 to more than 40%
in 2008.
800
700
Turnover
( MDT)
Chiffre
d'affaires
(MDT)
6 00
500
Domestic
CA Export
Market
400
CA local
Export
300
200
100
0
2002
2003
2004
2005
2006
2007
Source : www.infocom.tn
Figure 3 :
10
2008
Expansion of the ICT sector
A dynamic sector
The ICT sector is dynamic and a priority sector in Tunisia with one of the highest growth
rates (17.5% in 2007-2011). It shows a remarkable expansion with its contribution to the GDP
recording a constant high growth rate of 8% in 2006 compared with just 2.5% in 2002. This
contribution reached 10% in 2008 and will reach 13.5% in 2011.
Figure 4 : ICT share in GDP
Constant investments
The ICT sector saw a sustained high growth in investment during the last two decades
and profits derived from investments of about 6.3 billion dinars during the period 2007-2011
compared with 430 million dinars during the period 1992-1996. This strong growth is primarily
due to the reinforcement of infrastructure, in particular that of telecommunications.
Private sector involvement increased from 5% in 1992-96 to 40% in 2002-06.
Figure 5 : ICT investissments (Millions of Dinars)
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Investing in ICT in Tunisia
A sector open to foreign markets
Tunisian ICT companies are open to the international market through export or subsidiary
companies or representatives.
County clients of Tunisian ICT products and services
Countries where Tunisian ICT companies have offices
State-of-the-art technologies and skills
Tunisian software firms are highly-skilled in terms of technological know-how and competencies
Main fields of competence of software firms
Tunisian software firms operate in various fields:
• Strategic planning in communication and information systems
• Counseling in information systems and ICT: diagnosis, modeling,
and re-engineering studies
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• Engineering and software development
• Communication networks engineering
• Embedded systems integration
• Integration of communication or information systems (ERP, CRM, BI, Global
Banking, solutions E-Business/e-Trade, Wide Area Networks of companies etc)
• Multimedia services engineering
• Data management
• Data base management or distant services application
Expansion of the ICT sector
Main operating sectors of software firms
• Public sector: budgetary control, staff management, tax, customs, health services, social security, rental tax, electricity, water
• Telecoms sector: telecom operators, telecom services
• Companies: human resource management, ERP, CAM, GMAO, commercial management, financial management, business-intelligence
• Financial sector: banking, insurance
• Horizontal sectors: e-trade, e-government, e-learning
ICT private sector
• 600 software firms
• 300 IT system integrators
• 400 distributors and retailers
• 11 internet service providers
• Several development centres assisting multinational companies
• Several thousands employed :
• 10 000 in software firms
• 17 000 in call centers
• 2000 in equipment distribution
• 5000 in installation • 7000 telecommunication operators
• de 7 000 à 8 000 jobs created every year
ALTRAN MOVES TO TUNISIA
Wednesday, April 30 2008
Altran Technologies and the Tunisian company Telnet, announced the creation of a joint
venture «in the field of activities covering the delivery of engineering services”. Telnet has over
300 employees and reported sales of USD 11 Million in 2007.
This joint venture will be based in Tunis and will have an operational entity in Sfax. Partnering with
Telnet, ALTRAN joins the expertise of an engineering company already certified CMMI level 5. The
new entity «will also aim to develop the business of engineering services in Tunisia and neighboring
countries.» It is expected to employ approximately 300 people by 2010.”
Source : http://www.itrmanager.com/articles/76994/altran-implante-tunisie.html
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Investing in ICT in Tunisia
“ In Tunisia we have met people of good quality and a high level of education who are both
responsive and competent ”
Patrick Sevian, Sagem
“ Tunisia is characterized by highly educated human resources, an educational environment which supports the knowledge economy, a first class real estate and technological
infrastructure as well as by political and economic stability necessary for multinational
companies’ implementation ”
Sami Smaoui, Managing director, HP Tunisia
Qualified human resources
A higher quality of education
Tunisia has made sustained efforts to improve its competencies and devotes nearly 7% of the
state budget to education.
Education statistics
•
192 higher education institutions and a virtual university
•
The number of students increased 8 times with 370,000 students at the end
of 2008, including 59% who were female.
•
13,000 students in high standing Western universities
•
Computerization and internet connectivity of all higher education institutions
•
More than 50,000 students enrolled in ICT training – representing approximately
14% of the student population
•
More than 9500 ICT graduates per annum
•
More than 200 ICT training specializations within more than 50 public
and private higher education institutions
ICT based continuing education
The availability and the qualifications of Tunisian personnel are without doubt one of the
most important criteria for investors. Local and foreign companies value the competencies,
the training capacities, the qualifications and the flexibility of Tunisian youth.
14
Qualified human resources
Figure 5 : Number of students attending ICT courses in Tunisia
A young and qualified population profiting from a continuous effort
to ensure access to knowledge
The State guarantees the right to education for all children. In 2008, the education and higher
education budget reached 7% of GDP.
The research budget is 1.25% of GDP.
The education system is compulsory and free until the age of 16:
• Basic education lasts nine years.
• The rate of schooling is more than 99% for 6 year old children.
• One student out of four follows training in general education or a professional training.
“In the field of human resources, Tunisia has without any doubt the best graduates in the
technical field of the area”
Source : World Bank, 2002
Knowledge society
Importance of knowledge in the Tunisian economy
Tunisia regards the mastery of knowledge and technology as a crucial factor in economic and social development. Consequently, the country is constantly consolidating
investment in knowledge and securing the adjustment of the education system and
training, to guarantee the competencies required by the workplace. It also aims at
reinforcing the spirit of initiative, creativity and innovation
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Investing in ICT in Tunisia
An outstanding specialization
A progressive and swift consolidation of scientific curricula and teaching material content in
short and long term training courses of the higher education and vocational training institutions was carried out.
This was based on:
• Cut-backs in training costs
• Intensive use of modern communication networks and the possibilities they offer
• Promotion of scientific research
• Languages: Arabic, French, English, German, Italian, Spanish
Certification of companies and competencies
Conscious of the importance of certification of companies and competencies in order
to guarantee a high quality of services and products and constant improvement, Tunisia
engaged early in a program of ISO certification.
Special programs of work certifications were also set up. This entailed a number of
certified companies such as CMMI, ITIL and CISA. Thus, Tunisia has the first CMMI level
5 certified company in Africa.
Quality of higher
education research
institutions
Availability of scientists
and engineers in
the workplace
Germany
5,8
4,9
France
5,4
5,6
Hungary
5,0
4,5
Czech Republic
4,9
5,4
Tunisia
4,3
5,5
Spain
4,1
4, 6
Turkey
4,1
4,3
Poland
4,1
4,1
Romania
3,6
4,3
Italy
3,4
4,5
Source : Global Competitiveness Report 2008-2009, World Economic Forum
Table 2 : Science and technology indicators
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Qualified human resources
An ambitious program of certification of competencies was also carried out. It aimed at
enabling the certification of 70,000 graduates in ICT (CISCO, Microsoft, ITIL, LTI, Oracle,...).
In order to encourage the companies to embark on processes of certification, incentives
were set up providing 50 to 70% of the certification costs.
,
HR ACCESS: ENHANCING THE POSITION OF THE TUNISIAN OPERATION THROUGH
THE DECISIVE ADVANTAGES IT OFFERS
Set up in October 2003, HR Access was the result of 35 years of experience in the field of human
resources. HR Access acts with enterprises from all sectors to help them improve their HR services
- optimizing their costs and developing their strategic human resources approach.
From the time it joined Devonshire Investors (Fidelity Investment Group) in 2003, HR Access has
developed strongly in the international scene, with a presence in 11 countries (Germany, Belgium,
Spain, France, Ireland, Italy, Luxembourg, Morocco, United Kingdom, Switzerland and Tunisia) and
a portfolio of almost 600 clients in over 54 countries. A total of over 10 million staff and pensioners
are handled every day. Among the users of HR Access are such prestigious African enterprises
as Poulina, BIAT, SNDP and SNCFT in Tunisia, Lafarge and CIH in Morocco and Algérie Télécom in
Algeria.
The Tunisian subsidiary, which is the head office of HR Access MEA, was set up in 2006. HR Access
Tunisia has introduced a sustained recruitment policy and about 200 people (executives) have
been recruited in 2 years.
In mid-2009, HR Access worldwide had over 900 employees (about 300 of these in Tunisia)
and 2000 certified consultants.
Illustrative of the trust that exists in the Tunisian engineers and training institutions, HR Access
has set up partnerships with major Tunisian institutes like INSAT.
Faced with new redeployments required by globalization, HR Access has strengthened the position
of its Tunisian site through the decisive advantages it offers: qualified, committed and motivated
human resources, tax incentives, competitive costs, economic and political stability and geographical and cultural closeness to Europe. Its growing numbers are indisputable proof of this.
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Investing in ICT in Tunisia
“The services sector in Tunisia offers an excellent opportunity for a company of our size: skilled staff at
competitive costs, good means of communication and ideal working conditions. Our experience in Tunisia has
been very positive.”
Rene Buschler, Chairman and Managing Director, Siemens Tunisia
A modern and reliable infrastructure
Telecommunication infrastructure
A unique infrastructure in Africa
Tunisia has for a long time attached a great importance to its telecommunication infrastructure
which constitutes one of the most modern in the Mediterranean basin and Africa. As a result
its telecommunication network which covers its entire territory, has multifunction high band
switches which provide telephone transfer, internet and multimedia.
Tunisia is also the only country in North Africa to be connected to all its neighboring countries
and to have optical fibre submarine connections to Europe, Asia, the Middle East and America.
Tunisia is ranked first in Africa in terms of telephone density and number of PCs per capita and
it is rated first in North Africa with regard to the access to ICT index, according to a World Bank
study. This has also been confirmed by the Global Information Technology Report.
Rank
Country
Score
21
France
5,11
35
Tunisia
4,33
50
India
4,06
56
Greece
3,94
61
Romania
3,86
57
China
3,90
63
Egypt
3,74
74
Morocco
3,67
Source : 2007-2008 Global Information Technology Report Davos World Economic Forum
Tableau 3 : Networked Readiness Index ranking
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A modern and reliable infrastructure
An exemplary telecoms infrastructure
In term of telecoms infrastructure, Tunisia has:
• An internet network covering the entire country, accessible through 11 internet
service providers (6 public and 5 private).
• Access to international bandwidth of 27.5 Gbytes/s.
• A network of data transmission using various technologies: LS, ADSL,
Frame Relay, VSAT…
A secured international interconnection
Tunisia has always looked after developing and securing its international connection.
Thus, between September 2008 and November 2009, international bandwidth has been
multiplied by 5.5, growing from 5 Gbps to 27.5 Gbps. Those interconnections has also been
secured by diversifying submarine cables (SEA-ME-WE4 and KELTRA 2), by diversifying
landing points (Bizerte and Kelibia in Tunisia, and Marseille, Mazara and Palermo in Europe),
and also by installing an own submarine cable, Hannibal, with a capacity of 10 Gbps
expandable to 3200 Gbps.
6
Figure 6 : Tunisia International Network links
Technological parks, cyber parks and real estate infrastructure
Technological parks
To support the development of companies and the launch of businesses with strong added
value in terms of innovation, Tunisia established an ambitious program for the development of
10 technological parks. This program currently comprises three parks specializing in ICT:
• Data processing and multimedia in Sfax;
• Data processing and electronics in Sousse; and
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Investing in ICT in Tunisia
• Communication technologies in Tunis, in addition to an ICT component in all the other
parks (bio-informatics).
This environment has fostered synergies between industry, research and educational universities.
The technological parks have also promoted the emergence and development of innovative
foreign and Tunisian companies.
Elgazala Technopole
The first technological park dedicated to ICT in Tunisia and North Africa, was Elgazala
Technopole, which began its activities at the end of the Nineties. It accommodates over 90
companies employing 1650 people including 98% who are graduates. It also exports 75% of
site production. Elgazala Technopole hosts some of the most prestigious multinationals such
as Alcatel, Ericsson, Huwai Technologies, STMicroelectronics, Stone Soft and Kromberg Shubert.
In order to meet an unceasing demand, two additional sites will be annexed to Elgazala
Technopole: Ennahli on 36 hectares and Manouba on 54 hectares. The first section of 100,000 m ²
of offices will be available at the beginning of 2010.
Poles of competitiveness
Eight sectoral poles of national competence or regional competitiveness have been implemented
to widen the sphere of activity of the technological parks and to reinforce the potential of
sectoral innovation, clustering, the development of technological partnerships and for the
support of company creation.
Cyber parks
A network of cyber parks dedicated to on-line services covers the entire republic. At they end of 2009,
this network consisted of fourteen cyber parks and more are planned.
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A modern and reliable infrastructure
An intelligent real infrastructure
The technological parks and cyber parks are equipped with a modern ICT infrastructure as well
as first class buildings.
Apart from the technology parks and cyber parks, Tunisia also has an important modern
housing stock comprised of smart modern buildings at very competitive prices and able to
accommodate activities relating to ICT activities and services (e.g. call centers, BPO).
Bizerte
Tunis
Béja
Jendouba
Zaghouan
Le Kef
Siliana
Kairouan
Nabeul
Hammam Sousse
Sousse
Monastir
Ksar Hellal
Mahdia
Grand Tunis
Ariana
Borj Cedria
Gammarth
Manouba
Rades
Sidi Thabet
Tunis ville
Kasserine
Sfax
Sidi Bouzid
Gafsa
Djerba
Tozeur
Gabès
Medenine
Kébili
Tataouine
Existant
En projet
Pépinière
Parc Technologique
Cyberparcs
Figure 7 : Technoparks, Cyberparks and Incubators in Tunisia
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Investing in ICT in Tunisia
CISCO : A COMPETENCE CENTRE TARGETING THE AFRICAN CONTINENT
Founded in 1984 in San Francisco, Cisco Systems Inc. invented the first multi-protocol router to
interconnect networks using different communication protocols. Over the years, Cisco Systems
Inc.. has become a world leader with 57% market share in routers, 67% in security systems, 74% in
switching, 60% in the Wireless. Employing 65 000 people in over 75 countries and represented in
over 167 countries, Cisco Systems Inc. makes a turnover of U.S.$ 40 billion of which 14% is reinvested
in R & D. This strong investment allowed it to have more than 2,000 patents to its credit.
In early 2000, and aiming to be represented in Africa, CISCO System Inc. shortlisted nine countries
from which Tunisia was chosen for the setting up of a representative office. The Tunisian office
currently employs 12 Tunisian engineers of very high skills, and has made over the last three years, a
sustained increase in sales of 50% per year.
CISCO’s intervention in Tunisia is not direct but occurs through partners’ chanel. Thus, the sale and
installation of equipment is performed by ten integrators, while training and certification are carried
out by two other specialized partners. As part of the contribution to ecosystem development, and in the framework of the “Cisco Network
Academy” Program, Cisco has established agreements with the most prestigious schools of computing and telecommunications in Tunisia (INSAT, SUP’COM, ENSI , ...) to train and certify each year a
number of students.
Convinced of the importance of investing in the Tunisian market, a stock valued at U.S.D 4 million
was made available in Tunisia and for the exclusive requirements of client support and maintenance.
This stock covering the entire range of CISCO products marketed in Tunisia will allow, if need be,
standard replacement and to limit shutdowns to just a few hours.
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A modern and reliable infrastructure
Following its establishment in Tunisia, and convinced of the existence of qualified human resources,
Cisco has decided to set up a competence center that will, at first, meet the needs of North Africa,
and then expand to the whole African continent.
«Tunisia is a country of the rule of law, politically stable, where there is no corruption, and is
characterized by geographical and cultural proximity, with a clear market visibility. It has made of
technology a niche market, which earned it to be ranked first in Africa in terms of competitiveness
by Davos Report. That’s why Cisco has invested, continues to invest and will invest more in the future
in Tunisia.” Adel Dahmani, General Manager, Cisco Tunisia
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Investing in ICT in Tunisia
“Proximity to Europe, language skills, quality of engineers and a very good system of incentives encouraging the
recruitment of graduates are the main strengths of the development of STMicroelectronics Tunisia” Hichem Ben Hamida, General Manager, STMicroelectronics, Tunisia
Investment : an emerging sector
Tunisia showed a significant interest in the development of ICT with concrete support to
the development of the private sector, the environment, infrastructure and the legislative
framework. Indeed, a set of incentives was set up and promoted Tunisia as a favorable site for
the development of ICT.
Support for setting up ICT companies
• RITI: funds capital risks with public participation for the promotion
of entrepreneurial activities in ICT
• Private capital risk funds for ICT: Investment companies with Capital
Risks (SICAR) • Bank financing of SMEs (BFPME)
• Guarantee funds (SOTUGAR)
• A 10-year national plan for technological parks
• Network of 25 business incubators: an incubator for every technological
higher education educational institution
• A 14 cyber park network
Software firms’ support
• Legislation specific to stock options in favor of ICT companies
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• Exemption of VAT on ICT training carried out by specialized companies
• Government subsidisation of 70% of the costs of certification of companies
and competencies.
• Removal of the ceiling for travelling expenses abroad which are deductible
from the wage bill subject to compliance with national insurance contributions
Investment : an emerging sector
Investment advantages
• Tax reduction of 50% for investors in the ICT sector
• Exemption of income tax for 10 years in the case of companies that fully export
heir products and services
• Exemption of income tax in proportion to export turnover for companies that
partially export
• State subsidization of company contributions to national insurance for graduates
employed by companies for the first 5 years of their employment
• Investment bonuses that can reach up to 6% of the amount of the investment made
by young entrepreneurs
• Eligibility for upgrading: a subsidy of 10 to 20% for equipment investments
and 70% for other investments
• Export promotion: subsidies for foreign market prospecting (15 to 50%) (FAMEX,
Foprodex, Guarantee funds for exports before shipment)
Direct Foreign Investments
• Freedom of investment in manufacturing industries and related services (including
ICT and fully exporting activities) and the possibility for foreign investors to
possess 100% of the capital.
• Freedom of transfer of capital incomes (benefits, remunerations of share holders,
dividen ds, percentages and attendance fees , interest accrued from loans
and short-term bonds subscribed by non-residents attached to resident institutions)
• Possibility for foreign employees to subscribe to social security in their country
of origin
• Possibility for foreign employees to freely transfer 50% of their net salary
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Investing in ICT in Tunisia
Legislative environment for ICT
Tunisia was one of the first Mediterranean countries to have set up specific ICT sector legislation. Interestingly, Tunisian legislation on e-commerce and electronic exchanges goes back to
July 2000, ahead of the promulgation of such legislation in the majority of European countries.
As a result, Tunisia was ranked thirtieth globally by the World Economic Forum in the category
“ Existence of laws related to the use of information technologies ” ahead of some Northern
countries.
Rank
Country
Score
16
France
5,4
29
Belgium
4,9
30
Tunisia
4,9
39
Czech Republic
4,6
52
Italy
4,2
55
Turkey
4,0
73
Romania
3,7
87
Poland
3,4
97
Morocco
3,1
Report on Total Competitiveness 2009-2010, World Economic Forum
Table 4 : Existence of laws related to the
use of information technologies
A
set of laws specific to the ICT sector:
• e-commerce and electronic exchanges (2000)
• Electronic certification and recognition of electronic signatures
• Computer security
• Digital economy
• Incentives of public agencies for IT outsourcing
• Personal data protection
A
Telecommunications Code:
26
• Organization of the ICT sector and liberalization of initiatives
• Gradual liberalization of telecommunication services
• Reinforcement of competition and private initiatives
Investment : an emerging sector
HP MAGHREB: A GLOBAL SUPPORT CENTER WITH MORE THAN 800 PEOPLE
With its 118 billion USD in sales and 3.5 billion earmarked for R&D, Hewlett-Packard Company has
ranked 9th in Fortune 500 (2009) for all its industrial activity sectors. Better known in the field of
computer hardware, HP strengthened its position in the field of IT services through the acquisition
in 2007of the Electronic Data Systems Corporation.
Present in Tunisia since 2007 through its subsidiary HP Maghreb and convinced of the competitiveness of Tunisia in the global market, HP has taken the strategic decision to establish its fifth
global assistance center in Tunisia after Costa Rica, China, India and Bulgaria.
The HP global support center, providing all types of technical support for all HP products and
services, employs 800 people, mostly highly skilled engineers. In fact, ‘the goal of this global
assistance center is to provide immediate support and answers to questions and queries by
recipients of HP service using local Tunisian skills and expertise instead of recording requests to
be attended to subsequently.’
Having screened several countries, the choice of Tunisia has been based on relevant criteria
including political, economic and social stability, security, culture, public policy in the field of
technology as well as the availability of qualified and cost effective human resources, its geographical position, real estate infrastructure and a world-class telecommunications infrastructure.
«The few criteria which were not advantageous for Tunisia at the time of this assessment were
quickly dealt with through strong collaboration with government officials and especially the
Ministry of Communication Technologies.” Indeed, «Tunisia has a clear and ambitious strategy
along with a reliable implementation program which was capable of removing the few obstacles
we have identified during our evaluation such as international broadband, SLAs and the authorizations required for certain tools. This has been particularly facilitated by availability, ability to listen,
and the interest shown by several government ministers who have a business-focused vision.»
Sami Smaoui, Director General, HP Maghreb
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Investing in ICT in Tunisia
“ Personally, I do not regret having left California as this small Mediterranean country [Tunisia] offers all the
conveniences of a modern life in an atmosphere which is characterized by the warm hospitality of the people of
Tunisia”
Thomas Wendt, Managing Director, Eurocast
A country where you can enjoy life
In addition to being a privileged location for investments and the development of ICT businesses, Tunisia has very a good quality of life
An attractive quality of life
Tunisia was classified at the top of the countries of North Africa and the Middle East zone
where it “is pleasant to live” by the Irish company “International Living- room”, an observer of
quality of life in the world.
With this classification, Tunisia precedes Morocco, Lebanon and Jordan, Bahrain, Egypt and
Syria. The ranking is established according to an index based on qualitative indicators such
as: economy, cost of living, environment, culture, leisure, freedom, health, infrastructure,
risk and safety, and climate.
Conutry
Score
Tunisia
56
Morocco
55
Lebanon
54
Jordan
54
Bahrain
51
Egypt
50
Syria
50
International living
Table 5 : Quality of Life Index
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A country where you can enjoy life
A tourist country
Tunisia is also a tourist destination of choice with its 1300 km of coasts - the landscapes
varying from the forests of the north to the desert and the oasis in the south and its golf
courses. Tunisia has historical monuments testifying to an ancient civilization and a significant
history during which it gave its name to the African continent (Ifriquya).
A moderate Mediterranean climate
Tunisia enjoys a moderate Mediterranean climate. The weather is sunny and the temperatures are
very pleasant throughout the year.
Political stability
Tunisia is also recognized in the region for its political and social stability. The stability of the
State and institutions has allowed continuous social progress in the country. The proportion
of the population living under the poverty line is currently less than 4%.
Its Human Development Indicator (HDI) sits at 0.766 according to the last report published by
the UNDP, thus confirming the success of the economic model of Tunisia in the Maghreb.
A cultural dynamism
Tunisian soil contains many treasures of the past and presents a journey through time. The
beauty and the features of the sites are preserved and some historical sites are classed as
World Heritage Sites.
Tunisia holds many international festivals: Carthage, Hammamet, Douz, Tabarka (jazz music),
El Jem (symphonic music), as well as cinematographic and theatre days which play a big role
in the promotion of Arab and African art.
The cinema industry created the first studios of the Maghreb. Several prestigious films
were shot in Tunisia, namely films by European directors such as Chabrol, Zefirelli, Polanski,
Comencini and also American productions, such as Star Wars, The English Patient...
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Investing in ICT in Tunisia
The role of women
Since its independence in 1956, Tunisia has initiated a deep economic and social development
program promoting access to knowledge and health.
In 1956, Tunisia promulgated the Personal Status Code amended in 1993 that abolished
polygamy to ensure compliance with the equality of the sexes on the political, economic and
social level. Women represent nearly a quarter of the labor population and more than 50% of
the student population.
An important middle-class
Tunisia is also characterized by the existence of an important middle-class representing nearly
80% of the population. The rate of electricity connection is 99.2% and the rate of access to
drinking water is 96.5%. It is also important to note that 79% of households are owners of
their properties.
A high level international education
Tunisia has a high quality education system recognized at the international level. There are
also accredited primary and secondary French and American educational institutions.
ARDIA : FROM ASSEMBLY TO R&D
ARDIA is an international Group specializing in electronic equipment with high added value
and growth markets for the Automotive and Telecommunications, ACTIA® Group is present in
15 countries worldwide and employs over 2,300 employees including 430 in R&D. Its turnover is
212 million euros 50% of which abroad.
The Automotive division, which represents 80% of ACTIA Group’s turnover, is a major player in the
design, production and diagnosis of embedded systems in small and medium series for all classes
of vehicles.
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A country where you can enjoy life
In search of better competitiveness, and higher production costs and with a view to ensuring the
development of its activity, ACTIA ® Group established itself in Tunisia in 1976, by setting up an
assembly unit of electronic cards which employs today more than 600 persons and produces over
3 million cards per year. Enjoying a certified quality environment, CIPI-ACTIA meets very highest
standards of car production: ISO 9001, ISO TS 16949 and ISO 14001. Given the success of CIPI - ACTIA and won over by the quality of Human Resources, the Group
created in 2005 ARDIA, an R&D Center specializing in the development of diagnosis systems
(Multidi@g), as well as in embedded systems such as electric and electronic distribution systems
for buses, trucks and special vehicles (construction and agricultural equipment).
The Centre, located in the El-ghazala Technopark, has currently 60 engineers and achieves a
turnover of over €3 million with clients that are both prestigious and demanding in terms of
quality and reliability: PSA, Nissan Diesel, Mercedes, Fiat, Volvo,… ARDIA has introduced a range of partnerships, including with elite schools (SUP’COM, ENIT, ...),
related to training courses and project graduation, thus testifying to the Group’s confidence in
Tunisian engineers.
Despite existing locations throughout the world, in Eastern Europe (Poland, Czech Republic) and
Asia (India), ARDIA executives point to the many advantages offered by the Tunisia site, such as
economic and political stability, quality and productivity of human resources, logistics costs, as
well as geographical, linguistic and cultural proximity. The growth of its turnover as well as its engineers’ efficiency and quality confirm ARDIA in its choice to continue and expand its experience
in Tunisia.
«The compromise between geographical, linguistic, cultural and educational proximity allows a
better understanding and thereby a productivity maximization.”
Cyril Rochard, General Manager, ARDIA
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Investing in ICT in Tunisia
A strategy for strengthening Tunisia’s advantages
The vanguard ICT strategy and highly skilled human resources allowed Tunisia to position as
a regional technological pole appreciated by multinationals to setup regional bureaus, operations, support centres, etc. Tunisia also became a privileged location for outsourcing and
nearshoring.
This strategy is vanguard, clear and inclusive taking into consideration all the ICT potentials to
the advantage of economy, wellbeing and social development.
This was reconfirmed by the recent commitments taken during the election campaign
2009-2014 in favour of the ICT sector development, the investment increase, and the
employment. Thus, ICT are part of 13 over the 24 thematic and sector based chapters
with 39 programs and actions related to the infrastructure and the ICT use (health,
culture, employment, economy, industry, etc):
• Increasing international bandwidth from 17,5 Gbps to 100 Gbps by 2014
• Operating mobile telephone networks from the third generation and the new
technological generations.
• Involving civil society in building the knowledge society and adopting modern technologies
• Establishing the Digital Terrestrial Television Covering all the regions of the country in 2014
• Setting up a national agency for the promotion of investment in digital economy
• Allocating 0.5% of the turnover of telecommunication operators and the companies working in this
sector to research and innovation, compared to 0.15% currently.
• Promoting the healthcare computer system
• Upgrading health vigilance mechanisms and establishing the necessary capacities against
new diseases and epidemics.
During this campaign, commitments have been also taken to strengthen Tunisian
Competiveness, and business and Living environments:
- Un niveau de vie élevé et une qualité de vie meilleure
- Vers une économie à contenu technologique élevé, amie de l’environnement, économe en
énergie et innovante
• A higher standard of living and a better quality of life
• Towards an environment-friendly, energy-saving and innovative economy with high technological content.
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A strategy for strengthening
Tunisia’s advantages
• A pole for banking services and a regional financial center
• An efficient financial policy and a fair taxation system
• Higher education to build the society of intelligence and knowledge
• Scientific and technological research : A support base for the new economy
• A modern public service serving citizens and development
MICROSOFT INNOVATION CENTER
This Microsoft Innovation Center (MIC) is the fruit of strategic partnership between Microsoft and
the Tunisian government. It is a collaboration dedicated to supporting the growth of the software
sector by stimulating innovation and the development of intellectual capital.
Located in Elgazala Technopark since 2007, the MIC helps with the launch of young software
companies providing operational, financial and technological support. The center provides assistance
to pilot projects through an adapted testing environment suitable for the testing of solutions and
innovative prototypes.The MIC Tunisia also aims to develop vertical clusters specialized in e-health,
e-government and mobility.
The choice of Tunisia for the setting up of the first MIC in North Africa has been guided by the undeniable advantages Tunisia enjoys with a pool of innovative projects, a clear government objective
to encourage the development of local software economies, a willingness to develop a knowledge
society based on the quality of its human resources (engineers), a welcoming infrastructure and
operational startups.
Despite only being in existence for two years, MIC Tunisia is a success. The center has ranked first
globally as the most successful MIC - reflected in the dynamism and responsiveness of startups in
accessing new technologies and business opportunities in the country.
Tunisia also ranked first country in the MEA (Middle East and Africa) region, and 25th globally
as the world’s most active in implementing the BizSpark program, a global program to support
and accelerate the development of young companies.
«Thanks to a clear vision, well-defined goals and exemplary adaptation to global and international
requirements, Tunisia has succeeded in adhering to this global program.»
Salwa Smaoui, CEO, Microsoft Tunisia
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Contact
Ministry of Communication Technologies
3 BIS, rue d’Angleterre - 1000 Tunis -Tunisia
Tel : +216 71 35 90 00 / 71 32 49 48
Fax : +216 71 32 81 14 / 71 32 8236
email : communications@ministeres.tn
www.ministeres.tn
API, Industry Promotion Agency
63, Rue de Syrie – 1002 Tunis -Tunisia
Tel : +216 71 79 21 44
Fax : +216 71 78 24 82
email : api@api.com.tn
www.tunisieindustrie.nat.tn
CEPEX, Export Promotion Centre
Maison de l’exportateur
Zone urbaine Nord 1004 Tunis – Tunisia
Tel : +216 71 23 42 00
Fax: +216 71 23 73 25
email : cepex.dg@api.com.tn
www.cepex.org.tn
FIPA, Foreign Promotion Investment Agency
Centre Urbain de Tunis- 1004 Tunis- Tunisia
Tel : +216 71 70 31 40
Fax : +216 71 70 26 00
email : fipa.tunisia@mci.gov.tn
www.investintunisia.com
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Investor's guide
UTICA, Tunisian Union for Industry,
Commerce and Handicrafts
Cité administrative, Lot 7, Cité El khadhra, 1003 Tunis, Tunisia
Tel : + 216 71 14 20 00
Fax: + 216 71 14 21 00
email : utica@utica.org.tn
www.utica.org.tn
Tunisian ICT Federation
Cité administrative, Lot 7, Cité El khadhra, 1003 Tunis, Tunisia
Tel : + 216 71 14 20 00
Fax: + 216 71 14 21 00
email : info.fed.tic@utica.org.tn
it.utica.org.tn
Infotica, National Syndicate Chamber of
Services and IT engineering
Av. Charles Nicoles. Imm. Intilak appt. N°25. Cité MahrajeneBP 229 - 1082 Tunis - El Menzah 1 - Tunisia
Tel.: +216 71 28 68 29
Fax : +216 71 28 39 56
Email : admin.tn@cns-ssii.org
Web : www.infotica.org.tn
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