Tunis – 29 & 30 November 2016

Executive summary & Projects

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Tunisia 2020

1. Executive Summary

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1.) FIRST DEMOCRACY IN THE REGION

Tunisia is the hope for stability and democracy in the MENA region. It boasts a comparatively stable political and social environment (revolution is behind, unity government appointed headed by a 41 year old PM for 3 years) and security that is being managed

2.) NEW VISION FOR DEVELOPMENT

The first 5-year development plan of the second republic outlines the guiding principles, key sectors and several PPP infrastructure projects that will transition Tunisia from a low-cost economy to an economic hub

3.) PRO-BUSINESS LAWS, INCENTIVES & PROTECTIONS

The Tunisian parliament passed a new PPP law and a more attractive and competitive investment code that simplifies procedures and provides incentives, along with a fast track economic emergency law and more transparent arbitrage procedures

4.) REGIONAL & INTERNATIONAL ACCESS

With a potential for an $800M consumers market access in Europe, MENA and Turkey, Tunisia is a hub that enjoys preferential market access (FTAs) to all major countries in the regions and is the prime partner for Libya reconstruction and Algeria development

5.) ABUNDANT & SKILLED LABOR FORCE

Most educated country in Africa with the 7th largest ratio of scientists and engineers in the World. An important middle class, and women that have unparalleled rights and responsibilities in the MENA region.

Why Tunisia?

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International Conference 29 & 30 November 2016www.tunisia2020.com

1 500

70

participants

countries

of B2B meetings

speakers

2 days

50

personalities150

Private Sector Led

Led by the new Minister of investment, former head the largest Private Equity firm in Tunisia , the conference will bring Tunisian top Industry captains, young innovators with international funds, sovereign funds, infrastructure investors, large corporations and SMEs

Highest level political support (Several heads of state and heads of government have already confirmed) and support of international community (US is sending a high level official delegation and so are EU countries and the International Institutions (World Bank, EBRD,..)

Political and Institutional Support

More than 100 shovel ready projects to be presented for a total investment of 10 billion dollars.

Structuring Projects : Public, Private and PPP

Public and private projects100

of investment opportunities10 B $

Matchmaking and Handholding

A program will be tailored to each investor, and a handholding tiger team will be available for follow on visits and post conference support (these services are worth thousands of dollars)

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Tunisia 2020

The New Development Plan 2016-2020

Public & Private Projects

Transition from a low-cost

economy to an economic hub

The green economy, a

pillar of sustainable

development

Human Development

and Social inclusion

Good governance,

administrative reform and fight against corruption

Realizing the ambitions of the

regions

1

2

6

Tunisia 2020

2. The New Development Plan

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Towards a New Development Model

Speed up the implementation of good governance & fight against corruption

Develop a diversifiedeconomy with high employment content

Promote Investment & Improve business climate

Improve export capacities & further integration into the world economy

Promote digital economy as a vector of development

From a low-cost economy to an economic hub

Human development & social inclusion

Fulfilling the ambitions of the regions

Green economy a driver of sustainable development

Improve the living conditions

Enhance the efficiency of social policies

Boost complementarity and harmonisation among components of the education system and inculcate the spirit of citizenship in youth

Strengthen the capacities of the regions and enhancing their attractiveness

Improve living conditions at the local and regional levels

Reduce disparities and interconnecting the regions

Implement the principle of positive discrimination

Improve and adapt the regional development funding system

Establish the foundations of decentralisation

Achieve food security Fair land management

respectful of ecological balances

Optimise natural resources management

Protect the environment Use clean production and

consumption methods Mitigate the risks of natural

and technological disasters

1

2 3 4 5

Improve living conditions Enhance the efficiency of

social policies Boost complementarity

between Education System’ components

Strengthen the spirit of citizenship among youth

Strengthen the capacities of the regions and enhance their attractiveness

Improve living conditions at the local and regional levels

Reduce disparities and interconnect the regions

Implement the principle of positive discrimination

Improve and adapt the regional development funding system

Build the framework of decentralization

Guarantee food security Manage land use planning

fairly and respectfully of ecological balances

Optimize natural resources management

Protect the environment Use clean production and

consumption methods Mitigate the risks of natural

and technological disasters

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Recent Reforms

Diversify financial resources to develop infrastructure and boost investment

Enhance the private sector’s role in the economy

Banking Law

RenewableEnergy

Establish a modern banking system Boost confidence in the banking system Preserve financial stability and protect

against financial and economic crises

Regulate market concentration Challenge monopolistic practices Regulate price and advertising display Establish the competition authority

Tax System

Introduce a modern tax system Introduce new tax incentives Reduce public debt

Enhance sustainability Attract private investors Allow exportation of renewable energy Organize a national plan for electricity

generated by renewable sources

Reinforce Anti-Terrorism measures Restore investor and consumer

confidence

Public-PrivatePartnership

(PPP)

Anti-Terrorism

CompetitionLaw

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Upcoming Reforms

A New Vision For Economic and Social Development

ConsolidateMacroeconomic Stability Reform Public Institutions Promote Financial

Intermediation Improve Business Climate

Fiscal Policy Prioritize capital

spending Reduce public debt

Monetary Policy Contain inflation

Exchange Rate Policy Withstand important

shocks

Civil Service Reform Improve public service efficiency Introduce a Special status for

Senior Public Servants Act against corruption Contain the wage bill

Energy Subsidy Reform Strengthen the social safety net

State-Owned-Enterprises (SOEs) Reform Improve governance Strengthen public financial

management and transparency Boost revenues Reduce fiscal risks

Banking Law Establish a modern

banking system Strengthen the banking

system resilience

Central Bank of Tunisia Plan Introduce internal risk

rating system

Financial inclusion Strengthen financing or

microfinancing for SMEs Develop private credit

bureaus Revise the law on

excessive lending rates

New Investment Code Improve business

environment Reduce barriers to entry Protect investors rights Simplify taxes and business

formalities

Labor Market Reforms Build a national employment

strategy Reform vocational training

Other reforms Remove long-standing

structural obstacles to private sector development

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Tunisia 2020

3. The New Investment Code

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New Investment Code Outlines

Market Access Guarantees and Obligations Encouraging Investment Mechanism and Structure

Remove structural obstacles

Reduce the specification note revision

Shorten authorization delays

Ability to recruit an increasing number of executive staff

Facilitate dividend repatriation

Indicate refusal reasons

Property Law

Arbitrage procedures

Investment incentives Specific aids (60% granted at

40% of investment cost and therest upon completion)

Tax exemption (up to 10 years)

Needed external infrastructure

built and financed by the State

Public Structures Higher Council of Investment

Tunisian Authority of Investment

Tunisian Investment Fund

A New Code to Foster Investment

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Five Important Points of the New Code

To introduce tax incentives

To open-up opportunities

To accelerateprocesses

To simplifythe law

To offer more guarantees

New Investment

Code

End of authorizations: gradual program

Open recruitment of foreign competencies

Access to real estate for investment

A tax framework more competitive than other countries

Incentive system based on national priorities: employment, value addition, regional development, sustainable development

Single privileged interlocutor: Tunisian Investment Authority

Fast Track for all important projects

Deadlines set for every process

Traceability: tracking for every administrative file

From 75 to 25 articles

From 33 to 3 implementing decrees

Immediate implementation: finalized decrees

Guarantees respecting international standards

Dispute resolution : conciliation and arbitrage

Intellectual property protection

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Figures about the Investment Code

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2

3

4

Tax exemption up to 10 years, 10% tax on exports

Open recruitment of foreign competencies, up to 30% of executives

Financial incentives up to 50% of the invested amount

Full coverage of social and employer costs for some investments

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Tunisia 2020

4. Macroeconomic Overview

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Macroeconomic Overview

2010 2011 2012 2013 2014 2015 2016

GDP Growth % 3.0 -1.9 3.9 2.4 2.3 0.8 1.5

Investment (MD) 15 502 14 096 15 824 16 465 16 608 16 622 17 791

Investment Rate (% GDP) 24.6 21.9 22.5 21.9 20.6 19.4 19.5

Fiscal Deficit (% GDP) 1.0 3.3 5.5 6.9 5.0 4.8 3.9Inflation (%) 4.4 3.6 5.1 5.8 4.9 4.9 3.7Public Debt (MD) 25 639 28 779 31 418 34 986 41 054 46 923 50 354Public Debt (% GDP) 40.7 44.6 44.7 46.6 50.8 54.9 53.4

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Tunisia 2020

5. Public & Private Projects

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Public & Private Investment

Good governance, administrative reform and

fight against corruption

Transition from a low-cost economy to an

economic hub

Human Development and Social Inclusion

Infrastructure and Transportation Energy and sustainable development Global Inclusion

Total Investment sought by 2020:

$60bn

State and State-Owned Entreprises’ Projects

40%

Private Sector Projects

60%

Realizing the ambitions of the

regions

The green economy, a pillar of

sustainable development

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Infrastructure and Transportation Projects

Port Construction / Revamping

Metro Project

Old Highway

Planned Railway

New Express Roads

Future Highway

Bridge Project

Logistic Zone Projects

Industrial Area Projects

8

3

1

5

5

11

13

4

12

7

15

10

14

9

PROJECT TYPE

2

Tunis

Sfax

1

3

6

8

10

11

12

13

14

15

9

4

5

7

Enfidha Deep Water Port, First phase

Tunis-Kairouan-Sidi Bouzid-Kasserine-Gafsa A1 Highway

Le Kef A3 Highway

Sfax Metro Project

Bizerte Bridge Project

Sousse-Kasserine Railway Line

Rades Deep Water Port Terminal Extension

Zaghouan Logistic Zone

Mateur-Tabarka Railway Line

Tunis-Kasserine Railway Line

Jandouba-Bousalem A3 Highway

Radès Logistic Zone

Gabès-Medenine Railway Line

Zarzis Logistic Zone

1000

500

320

270

250

170

140

140

140

120

120

100

100

140

PROJECT NAME COST($M)

Kasserine, Sidi Bouzid and Gafsa a1 Highway

2 550

Total Investment

$4bn

New Highway

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Energy and Sustainable Development Projects

Steam Combined Cycle Plant

Wind Power Plant

Solar Power Plant

Seawater Desalination Plant

Technical Acid Production Plant

Combined Cycle Power Plant

Phosphate Field

Power Interconnection Project

Green Economy Program(Sanitation and Sewage)

Oil Pipe Line Project

PROJECT TYPE

1

2

5

7

9

10

8

3

4

6

Tunisia-Italy electricityInterconnection

Sekhira Steam Combined Cycle Plant

Ben Arous Combined Cycle Plant

Sfax Seawater Desalination Plant

Nafta-Tozeur Phosphate Field

Ktef Wind Power Plant

Menzel Abderrahman Wind Power Plant

Gabès Desalination Plant

Solar Power Plants

Tbaga Wind Power Plant

680

310

310

300

170

120

120

100

70

110

PROJECT NAME COST($M)1

2

3

5

6

4

1

7

8

9

10

Tunis

Sfax

9 Gabès Technical Acid Production Plant

90

Total Investment

$2.4bn

20

Global Inclusion Projects

CHILD HOSPITAL IN MANOUBA

CANCER TREATMENT CENTER IN

TUNISREGIONAL MULTISERVICE HOSPITAL IN

BEJA

80 $M

60$M

80$M

DIGITAL SCHOOL PROJECT

EQUIPMENTS FOR THE

UNIVERSITY INSTITUTIONS TUNISIAN

GERMAN UNIVERSITY OF

TUNIS

40 $M

80$M

280 $M

MUNICIPAL INVESTMENT

PLANREGIONAL

DEVELOPMENT PROGRAM

DIGITAL TUNISIA 2020

270 $M

600 $M

1140 $M

HEALTH

EDUCATION

REGIONAL DISPARITIES

12

3 32

8

9

11

1

106

13

12

SPORTS

HOUSING

THE 2nd

PROGRAM OF AFFORDABLE

HOUSES

INTEGRATED DEVELOPMENT

PROGRAM

320 $M

300$M

KASSERINENATIONAL

SPORTSTRAINING FACILITY

SFAX SPORTS CITY

OLYMPIC SWIMMING

POOLS

10 $M

90$M

10 $M

AGRICULTURE

SILIANA OUED TESSA

DEVELOPMENT PROJECT KAIROUAN

MAHDIADEVELOPMENT

PROJECT

BIZERTEZAGHOUAN

DEVELOPMENT PROJECT

70 $M

60$M

50 $M

NEIGHBORHOOD RENOVATION AND

INTEGRATION

360 $M

98

76

1110

12

13

Total Investment

$3.9bn

REGIONAL MULTISERVICES

HOSPITAL IN KAIROUAN

75$M4 REGIONAL

MULTISERVICES HOSPITAL IN

GABES

90$M5

5

4

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Tunisia 2020

www.tunisia2020.com

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Targets & Critical Success Factors

Targets, Strategy Success Factors

Targets

SMES in priority sectors High profile investors or CEOs (2 or 3) Friends of Tunisia throughout the US (121, ACYPL, ..) Diaspora- relay

Reach out approach

Feature the conference in the website of key nationwide trade, investment and commerce organizations

International Trade Association World Trade Centers US chamber chapters Emerging Markets PE association

Small targeted media campaign Atlantic Council article and conference

Begin to change the narrative on TUN (good image inDC but not in economic circles- meet people and buildtrust)- tourism and investment come as a consequence

Enable one on one JVs between US SMEs and TUNcompanies funded organically or by donors/investors

Gain further US Political support- textile exports tariffreduction, FTA talks- Obama post Nov 8 signature),MCC industrial zones (highly secured SEZs with onestop shops. Change the MCC threshold slightly tocapture 2 or 3 countries including Tunisia instead ofdoing an exception), lift travel warning (France andothers have done,families are allowed back in USembassy), connect poles of innovations

Post conference follow up - economic advocacy, tigerteam in Tunis to do the handholding)

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Hedi LarbiJean AbinaderBill GregoryHamouda Chekir

OmahaTelemarketingHotel ReservationsCredit Card Processing

Wisconsin / Iowa / IllinoisAgricultural Equipment

DetroitAuto Equipmentand Parts

RochesterImaging Equipment

Western MassachusettsPolymers

BostonMutual FundsMedical DevicesMgmt. ConsultingBiotechnologySoftware and

NetworkingVenture CapitalHartfordInsuranceProvidenceJewelryMarine Equipment

New York CityFinancial ServicesAdvertisingPublishingMultimedia

Pennsylvania / New JerseyPharmaceuticals

North CarolinaHousehold FurnitureSynthetic FibersHosiery

Dalton, GeorgiaCarpets

South FloridaHealth Technology Computers

Nashville / LouisvilleHospital Management

Baton Rouge / New OrleansSpecialty Foods

Southeast Texas / LouisianaChemicals

DallasReal Estate Development

WichitaLight AircraftFarm Equipment

Los Angeles AreaDefense AerospaceEntertainment

Silicon ValleyMicroelectronicsBiotechnologyVenture Capital

Cleveland / LouisvillePaints & Coatings

PittsburghAdvanced MaterialsEnergy

West MichiganOffice and Institutional Furniture

MichiganClocks

CarlsbadGolf Equipment

MinneapolisCardio-vascularEquipmentand Services

Warsaw, IndianaOrthopedic Devices

ColoradoComputer Integrated Systems / ProgrammingEngineering ServicesMining / Oil and Gas Exploration

PhoenixHelicoptersSemiconductorsElectronic Testing Labs

Las VegasAmusement / CasinosSmall Airlines

OregonElectrical Measuring EquipmentWoodworking EquipmentLogging / Lumber Supplies

SeattleAircraft Equipment and DesignBoat and Ship BuildingMetal Fabrication

BoiseSawmillsFarm Machinery

Atlanta

Houston

Washington DC

Chicago

Amanda ReeveAnis AtallahJacob Candelaria

Suzan BaajMondher B HamidaDhia

Sami BRWalid M.Lamia M.Houssem A.

Kathy BaileyHolly Chisa

Aida AraissiHatem GouchaJason Isaac/ Ben Stratman

Hatem Sellami

Anis Mnif

Firas Ben AchourAmina Laouani

Bo CutterKarim BabaySami RobbanaLotfi KarouiBadis B HamidaAicha Zakraoui

Gil CrawfordJay FootlikShelly PorgesJill Bader/ Suzanne SwinkSteve KoltaiKris BalderstonSamia MsadekMarouen Abbassi

Jake BraunIkbel Achour

Fay Bedoun

Cailtin Copple

Local delivery & focus on US clusters that match Tunisia’s focus sectors