AGP Executive Report

Energy: Tunisia has tendered a 50MW solar plant with battery storage at Beni Mhira as record electricity demand and a widening energy deficit increase pressure on supply. Mining: The government aims to restore phosphate output to 10 million tonnes a year and process up to 70% domestically into higher-value products. Agri-food: Olive-oil export revenue topped TND 4 billion in the first nine months, up 37.4%, though much of the product is still exported in bulk. Trade: The deficit reached TND 20.997 billion as imports outpaced exports; textile and clothing exports fell 4.7%, while mining exports dropped 16.5%. Manufacturing: Tunisia and South Korean companies explored partnerships in automotive components. Pursuit Aerospace is expanding its Tunisian plant, targeting 1,000 additional jobs, while SGH Medical Pharma has opened its first factory outside France in Tunisia.

Renewable Energy: Tunisia has tendered a 50MW solar plant with battery storage at Beni Mhira in Tataouine, as record electricity demand strains supply. Automotive & Mobility: Tunisia and South Korea are exploring investment in automotive components. Electric vehicles reached about 3,000 by August, but the country has only 200 public charging points. Trade & Energy: The trade deficit neared TND 21 billion in the first nine months of 2026, with energy accounting for TND 10.48 billion; the energy deficit was up 29% year-on-year by August. Mining & Manufacturing: Tunisia is targeting annual phosphate output of 10 million tonnes and plans to process up to 70% locally. Separately, SGH Medical Pharma opened its first factory outside France in Tunisia, while Pursuit Aerospace is expanding its Tunisian plant with a target of more than 1,000 jobs.

Automotive Investment: Tunisia and South Korea explored new partnerships in automotive components, while Spanish supplier ARSAM plans to expand its Sousse operations. Electric Mobility: Tunisia had about 3,000 fully electric vehicles and 200 public charging points by August; new rules are expected to open charging infrastructure to private investors. Pharma and Food Safety: Tunisia and Indonesia agreed to prepare a cooperation deal covering medicine controls, food safety, telemedicine and pharmaceutical manufacturing. Trade and Energy: Tunisia’s trade deficit neared TND 21 billion in the first nine months of 2026, with energy accounting for almost half. The energy trade deficit was up 29% year on year by August. Power Supply: Record peak demand reached 5,089 MW in August, as heatwaves strained generation and prompted rolling power cuts. Mining and Manufacturing: Tunisia is targeting annual phosphate output of 10 million tonnes, with more processing at home. SGH Medical Pharma has opened its first factory outside France in Mégrine, while Pursuit Aerospace is expanding its Tunis plant and expects the site to employ more than 1,000 people by late 2027.

Industrial Investment: Pursuit Aerospace plans to expand its Tunis plant by 40%, aiming to employ more than 1,000 people when work is completed in 2027. French group SGH Medical Pharma has opened its first factory outside France in Mégrine, making medical and pharmaceutical plastic products and employing about 100 people. Regional Manufacturing: Italian olive-oil technology group Pieralisi is considering an Africa innovation and training centre in Tunisia. Infrastructure and Energy: Bizerte approved public projects worth nearly TND 13 million, while Tunisia has also tendered a multi-site battery-storage project. The government is tracking six major projects, including Enfidha port and logistics zone and Tunis-Carthage airport expansion. Skills Pipeline: Tunisia ranks first in the reported global share of science and engineering graduates, at 37.93%; women make up about 70% of university graduates and 69% of PhD holders. Economic Pressures: The current-account deficit reached 2.5% of GDP by August as energy imports climbed, while September inflation rose to 5.6%. Agriculture: Hail damaged crops in Kasserine, with olive losses above 70% in Sbiba, raising concerns for the harvest.

Insurance: Libya’s Insurance Federation signed a cooperation protocol in Tunis with the African Insurance Institute and Tunisia’s STAR, focused on training and expertise-sharing. Tourism and Infrastructure: El Hamma’s thermal baths draw nearly 3 million visitors a year, with new treatment and spa projects planned. Bizerte approved public works worth nearly TND 13 million, including road upgrades and maternity services. Industrial Investment: Pursuit Aerospace is expanding its Tunis plant by 40%, aiming to employ more than 1,000 people by the second half of 2027. SGH Medical Pharma has opened its first factory outside France in Mégrine, where the medical-plastics facility employs about 100. Energy and Manufacturing: Tunisia has tendered a multi-site battery-storage project, while olive-processing equipment maker Pieralisi is considering a Tunis-based African innovation and training centre. Business Climate: The current-account deficit widened to 2.5% of GDP by August as energy imports surged; the central bank held its key rate at 7% as September inflation rose to 5.6%.

Regional Projects: Bizerte approved nearly TND 13 million in public works, including road upgrades and maternity-department support. El Hamma’s thermal baths attract about 3 million visitors a year, with new treatment facilities planned. Manufacturing: Pursuit Aerospace is expanding its Tunis plant by 40%, targeting more than 1,000 jobs by 2027. France’s SGH Medical Pharma has opened a 3,000-square-metre medical plastics factory in Mégrine, employing about 100. Pharma: Electronic drug-submission files become mandatory in 2027; 25 manufacturers have invested in the required systems. Energy & Economy: Tunisia has tendered a multi-site battery-storage project and is studying a gas-fired power plant with Algeria. Energy imports rose 28% to TND 11.3 billion through August, helping push the current-account deficit to 2.5% of GDP; the central bank held its key rate at 7%. Agriculture: Hail damaged crops in Kasserine, with losses reaching 50–70% and olive-harvest damage exceeding 70% in Sbiba.

Agriculture: Hail damaged olive groves, vegetables and fruit trees across Kasserine, with losses reaching 70% in some areas and no disaster-fund compensation for hail damage. Manufacturing: SGH Medical Pharma has opened its first factory outside France in Mégrine, employing about 100 people. Pursuit Aerospace is expanding its Tunis plant by 40%, with more than 1,000 jobs targeted after completion in 2027. Economic outlook: The central bank kept its key rate at 7% as September inflation rose to 5.6%; the current-account deficit reached 2.5% of GDP by August, with higher energy imports adding pressure. Energy and infrastructure: Tunisia is tendering a 300MW battery-storage project, while officials reviewed progress on six major projects, including Tunis-Carthage Airport expansion and the Enfidha port and logistics zone. Industry and trade: Italian olive-oil technology group Pieralisi is considering an Africa innovation center in Tunisia. The country’s pharmaceutical makers are preparing for mandatory digital drug-submission rules in 2027, a shift that brings added costs and technical demands. Investment: Tunisia’s role in the planned North Africa–Europe hydrogen corridor is advancing, while Ciments de Bizerte has cut its first-half losses and secured government approval for its restructuring plan.

Factory Investment: French group SGH Medical Pharma opened its first plant outside France in Mégrine. The 3,000-square-metre medical plastics facility employs about 100 people. Aerospace Growth: Pursuit Aerospace is expanding its Tunis plant by 40%, with the new building expected to help raise employment above 1,000 by late 2027. Pharma Modernization: Drugmakers must switch to electronic regulatory filings from January 2027, requiring investment in software, equipment and training. Energy Projects: Tunisia plans a 300MW/600MWh battery-storage project, while Tunisia and Algeria are studying a 1.4GW gas-fired power plant. A proposed €13bn hydrogen corridor would link North African production to European industry. Agri-Tech: Italian group Pieralisi is considering a Tunisian innovation and training hub for olive-oil technologies. Economic Pressures: The central bank held its key rate at 7% as September inflation reached 5.6%. The current-account deficit widened to 2.5% of GDP by end-August, with rising energy imports adding pressure.

Industrial Investment: Italian olive-oil technology group Pieralisi is considering a Tunisia-based Africa innovation and training hub, building on its local operations and aiming to transfer expertise across the region. Energy & Economy: Tunisia’s current-account deficit widened to TND 4.694 billion, or 2.5% of GDP, by end-August as energy imports rose 28% year on year to TND 11.3 billion. The central bank held its key rate at 7% as September inflation reached 5.6%. Infrastructure: Government officials reviewed six strategic projects, including Tunis-Carthage Airport expansion, the Enfidha port and logistics zone, and power-plant expansion. Tunisia also tendered a 300MW/600MWh battery-storage project. Manufacturing: Pharmaceutical makers face a mandatory shift to electronic drug-submission files from January 2027; 25 of 48 authorized manufacturers have invested in the required systems. Green Mobility: Sfax received two electric cars for municipal work under the national programme to promote electric transport.

Pharmaceuticals: Tunisia’s drugmakers face a January 2027 deadline to adopt e-CTD filings. The digital shift could cost about TND 30,000 per manufacturer, and only 25 of 48 authorized facilities have invested so far. Energy Investment: Tunisia’s utility plans a 300MW/600MWh battery-storage project across the country. Tunisia and Algeria are also studying a 1.4GW gas-fired power plant to bolster supply. Manufacturing: Selenis’s acquisition of Greek production assets will lift its specialty copolyester capacity above 200,000 tonnes by 2028, across sites including Tunisia. Digital Services: Orange Tunisie and Focus are partnering to offer locally hosted cloud services to businesses. Market Pressures: The dinar has slipped past 3 to the US dollar, raising the cost of imported energy and raw materials. SIAME’s first-half profit rose 9.9% despite lower revenue, while chemical producer ALKIMIA’s 2025 net loss widened to TND 54.6 million.

Manufacturing: Selenis’ acquisition of Greek production assets will lift its specialty copolyester capacity above 200,000 tonnes a year by 2028, across sites including Tunisia. German auto supplier Kromberg & Schubert has also opened a second plant in Béja. Pharmaceuticals: Tunisia’s e-CTD filing system becomes mandatory on January 1, 2027. The shift may cost manufacturers about TND 30,000 each; 25 of the country’s 48 authorized facilities have already invested in the technology. Power & hydrogen: Tunisia is tendering a 300MW/600MWh battery-storage project, while Tunisia and Algeria are studying a 1.4GW gas-fired plant. Five countries have also agreed to advance the proposed €13 billion SoutH2 hydrogen corridor linking North Africa to Europe, though key feasibility and financing work remains. Company results: Electrical equipment maker SIAME lifted first-half profit 9.9% to TND 1.9 million despite lower revenue and a 45% drop in export sales. Chemical producer ALKIMIA’s 2025 loss widened to TND 54.6 million.

Energy Storage: Tunisia’s state utility is tendering a 300MW/600MWh battery-storage project spanning the north, centre and south, a major step toward strengthening grid flexibility. Agriculture and Water: Researcher Hussein Rhili says agriculture uses 77% of Tunisia’s water, and urges a rethink of crops grown for export as shortages and ageing irrigation networks strain supplies. Digital Services: Orange Tunisie and Focus are partnering to expand locally hosted cloud services for businesses, with local support and data control. Currency Pressure: The dollar has topped three dinars for the first time since May 2025, raising costs for imports such as energy, grain and raw materials. Industrial Restructuring: Ciments de Bizerte narrowed its first-half loss, but revenue fell 20%; its government-approved restructuring plan is moving toward implementation. Climate Investment: Tunisia estimates it needs nearly $55 billion by 2035 for climate projects and is seeking ways to turn plans into financeable investments.

Agriculture and Water: Researcher Hussein Rhili says agriculture uses 77% of Tunisia’s annual water, and urges a rethink of crop choices and ageing irrigation networks as reserves decline. Climate Investment: Tunisia estimates it needs nearly $55 billion by 2035 for climate projects, with government, businesses and banks urged to build investment-ready project portfolios. Digital Services: Orange Tunisie and Focus are partnering to offer locally hosted cloud services, with local support and data control for businesses. Cement Industry: Ciments de Bizerte narrowed its first-half loss to 22 million dinars, while revenue fell 20%; its restructuring plan has government approval. Trade and Costs: The dinar has slipped past three per dollar, raising the cost of imported energy, grain and raw materials. September inflation also rose to 5.6%, led by food prices. Automotive Partnerships: A South Korean business delegation will meet Tunisian companies on October 12 to explore automotive components, electronics, equipment and technology partnerships. Aerospace Manufacturing: Pursuit Aerospace is expanding its Tunis operations by 40% in floor space, with the enlarged site expected to employ more than 1,000 people.

Digital Services: Orange Tunisie and IT provider Focus are partnering to expand locally hosted cloud services for Tunisian businesses, with local support and greater control over data. Economic Pressures: The dollar topped 3 dinars for the first time since May 2025, while September inflation reached 5.6%, driven by food prices rising 8.4% year on year. Reports of water, food and power shortages point to mounting strains on households and businesses. Industry and Investment: Tunisia will host South Korean companies for talks on automotive components, electronics and technology partnerships. German supplier Kromberg & Schubert has opened a second plant in Béja, and Pursuit Aerospace is expanding its Tunis casting site by 40%, with the enlarged operation expected to employ more than 1,000 people. Infrastructure and Energy: The Islamic Development Bank approved about €335.5 million for highway extensions toward Le Kef and Jendouba. Tunisia is also advancing the SoutH2 green hydrogen corridor with European partners, while Algeria reaffirmed its commitment to energy exports to Tunisia.

Tunisia Economy & Markets: The Tunisian dinar steadied after a rebound: the US dollar climbed back above 3 dinars on the interbank market for the first time since mid-May 2025, with the greenback supported by higher US Treasury yields and euro pressure. Inflation Watch: Tunisia’s annual inflation accelerated to 5.6% in September 2026, mainly driven by food and beverage prices (+8.4% y/y), with poultry (+16.5%), fresh fruit (+16.3%) and meat also rising; core inflation held at 4.9%. World Bank Moves: Alexander Kremer was appointed World Bank Group Country Manager for Tunisia, tasked with boosting inclusive growth, jobs, private-sector development and resilience. Industrial & Trade Links: Tunisia will host a Tunisia–South Korea business day on Oct. 12 focused on automotive and related industries, from components and electronics to R&D and industrial subcontracting. Energy & Infrastructure: A Tunisian finance committee report outlines assumptions and priorities for the 2027 state budget, including energy transition and public spending plans. Aero Manufacturing Investment: Pursuit Aerospace expanded in Tunisia, adding a third building to its casting operations in the country, supporting growth in aeroengine investment castings. Housing & Urban Development: UN-Habitat’s Scroll of Honour recognized Tunisia’s Abdelmalek Ghanem among winners, highlighting housing solutions.

Tunisia’s Budget 2027 Watch: Finance Committee member Ali Zaghdoud says the Finance Ministry sent a report on 2026 first-half budget execution and the key assumptions behind the 2027 state budget, with priorities spanning fiscal balances, resource mobilization, public spending management, and the energy transition. World Bank in Tunisia: The World Bank Group appointed Alexander Kremer as its Tunisia representative, taking over from Alexandre Arrobbio, to steer work on inclusive growth, jobs, private sector development, and resilience. Energy & Regional Integration: Tunisia’s Slah Zouari highlighted the SouthH2 southern hydrogen corridor as a strategic North Africa–Europe link, with partner countries agreeing on further studies before finalizing implementation arrangements. Industry & Trade Expo: Cameroon’s National Shippers’ Council invited cocoa businesses to the 2026 Chocolate & Pastry Expo in Tunis (Nov 19–21) to expand processing and market opportunities. Water & Food Security Context: Separate coverage flags food and water stress across the region, underscoring why infrastructure, governance, and supply chains remain top industrial priorities.