ICT SECTOR - ema-germany.org

AG TIC ANG.indd 1AG TIC ANG.indd 1 02/06/2020 12:3802/06/2020 12:38

ICT SECTOR

2Tunisia benefits from

a key geographic proximity to

European countries and has signed free

trade agreements with the markets of

Sub-Saharan Africa, the Middle East and the European Union

A CENTRAL POSITION IN THE EUROMED AREA

n Countries with which Tunisia has signed a free trade agreement and / or a trade agreement

Source: World bank, Eurostat, CBT exchange rate on 24/ 07/19 1 Tunisian Dinar = 0,3119 €, INS, Deloitte analytics, World Investment Report 2019

GAFTA

Main free trade / trade agreements ratified by Tunisia

Population (2018)

11,55 millions

Capital Tunis

(1,07 m inhabitants)

Surface Area

163 610 km2

Economic openness rate

87,7% (en 2017)

Time zone

GMT + 1hour

Free trade agreements

UE, COMESA, UMA, GAFTA

Stock of inward FDI in GDP % - 2018

Tuni

sia

Liby

a

Mar

occo

Nor

th A

fric

a

Afr

ica

67,1

%

42,4

%

54,3

%

42,7

%

38,6

%


3Tunisia’s growth rate rose from 1.5% in 2015 to 2.5% in 2018 - According to Government estimates, this trend is likely to continue,

reaching 2.7% in 2020

KEY FIGURES

Source: African Development Bank, INS, World Bank, IMF: World Economic Outlook (WEO) Database, April 2019, World Investment Report 2019 / 2018e: GDP 2018 according to the CBT estimates

GDP growth rate(2018)

2,5%

FDI inward stock (2018)

26 792 m $

GDP / capita (PPA $, 2018)

12 483 $

# of FDI projects announced (destination Tunisia 2018)

554

# of FDI projects announced (source Tunisia 2018)

93

GDP ($, 2018)

39,86 m $

Flow of foreign direct investment (2018)

1 036 m $

CPI inflation (2018)

7,3%

Evolution of GPD in billion TND (2008-2018)

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

e

55,

3

58,

7

63,

1

64,

5

70,

4

75,

1

80,

8

84,

7

89,

8

96,

3

105

,4

CAGR +6,7 %

4,2%

3,0% 3,5%

-1,9

%

4,0%

2,9%

3,0%

1,2%

1,1% 2,

0%

2,5%

1,4% 2,

7%

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 s


4Tunisia has a

competitive edge compared

to competing destinations on the

basis of the most relevant international

rankings

TUNISIA IN THE INTERNATIONAL RANKINGS

Source: Data World bank 2018

Source: Global innovation index 2018

Source: Doing Business 2020

Source: Data World bank 2018

Source : Global Information Technology Report | Facilité d’adoption des technologies émergentes et de la

transformation digitale = 7 étant le meilleur

Source: Global competitiveness report 2019

High-technology exports in pourcentage of manufactured exports

« Global innovation 2018 » Score

Doing Business Score

Number of researchers in R&D per million inhabitant

Networked readiness index

Global competitiveness index

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25,9

0

19,6

0

16,9

0

10,6

0

10,6

0

10,1

0

10,1

0

7,40

7,20

5,30

3,80

2,30

0,90

0,60

54,2

49,4

47,9

44,6

44,5

42 41,3

40,3

36,9

36,8

32,8

31,6

27,5

24

77,9

76,8

76,8

76,5

76,4

76,3

75,6

73,4

73,4

73,3

72 68,7

60,1

48,6

4441

4291

3690

2924

2873

2795

2528

2131

1965

1386

1069

890

821

669

5,3

4,3

4,8

4,7

4,5

4,4

4,4

4,4

4,1

4,1

3,9

3,9

3,7

3,2

78,8

75,3

70,9

70,4

68,9

66,8

65,1

64,9

64,4

62,1

60 56,4

56,3

54,5


5The ICT sector is in continuous growth

and had contributed almost 7.5% of the

GDP in 201 - the ICT ecosystem consists of more than 1,800 companies spread

mainly over the Greater Tunis area

and the coastal cities and employs nearly

80,000 people

TIC TERRITORIAL NETWORK OF ICT COMPANIES

Development of the sector’s employability

67%

28%Sahel region

28% of the companies

Grand Tunis area67% of the companies

2013

2014

2015

2016

2017

66 5

33

68 3

07

71 1

64

74 8

84

79 2

77

CAGR 4,5%

• The ICT sector contributes to more than 7.5% of the national GDP and has recorded an annual growth rate of more than 7% over the period 2014 – 2017.

• Over 1,800 companies operate in the sector, 12% of which have 100% foreign capitalization.

52,9 % Telecommunication

0,5 % IT consulting

0,4 % Data processing, data hosting and related activities

34,8 % Other IT activities

8,6 % Call centers activities

2,8 % Computer programming


6Several «success

stories» and international

champions have emerged in recent

years, and have contributed to Tunisia

a destination of choice on the African

continent

EXAMPLES OF SUCCESS STORIES AND INTERNATIONAL CHAMPIONS

• Linedata est is a creator of global solutions dedicated to asset management, insurance and credit professionals, with 20 offices in 50 countries around the world

• In 2004, the group has established itself in Africa with the opening of an office in Tunis, the activity of which is entirely dedicated to the export of management ERP to Europe and Africa

• VERMEG, one of the leading companies in the Tunisian economy was created in 1993 to meet the digital transformation needs of the insurance and finance sectors

• Today, the company has more than 500 customers in more than 40 countries and employs more than 1,100 people, 20% of whom are dedicated to R&D activities

• VERMEG is considered the European market leader in life and health insurance management software

• Sopra HR Software, a subsidiary of Sopra Steria, offers complete HR solutions perfectly suited to the needs of Human Resources Departments and is considered a leader in the Human Resources sector in Europe, the Middle East and Africa

• In 2006, Sopra Steria, expanded its activities to Tunisia through the establishment of a center of excellence, operational expertise and project execution, a service center, and a R&D center for innovation and the develop-ment of new solutions

• Founded in November 2011, Sofrecom Tunisia is one of the youngest subsidiaries of Sofrecom and now has more than 550 engineers and experts

• In Tunisia, the company which specializes in consulting and engineering for the telecommunications sector is conside-red a center of development and expertise for service and information system platforms whose activities are perfectly complementary with the activities of the group’s other North African subsidiaries


7EXAMPLES OF SUCCESS STORIES AND INTERNATIONAL CHAMPIONS MAIN PLAYERS IN THE ICT SECTOR IN TUNISIAThe ICT sector brings

together a multitude of leading players at

the local and regional levels


8On average, there

are more than 10,000 graduates in the fields

related to the ICT sector - according

to the «Global Competitiveness

Report“- Tunisia ranks first in North Africa

in terms of quality of vocational training,

graduates skills and ease of access to

skilled employees

A POOL OF TALENTS COVERING THE AUTOMOTIVE SECTOR’S NEEDS

• Over 7,500 engineers graduates annually

• 47 Schools and establishments (public and private), offering engineering training

• 25 Higher institutes of technological studies ensuring the training of qualified middle managers and technicians and meeting the needs of companies

• + 60 public vocational training centers, covering the entire Tunisian territory

Quality of vocational training (score)

Graduates ‘ skills (score)

Ranking of countries by ease of finding skilled employees

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t

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occo

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akia

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33,1

39

43,3

43,4

44,9

45,6

48,4

61,3

31,8

37,8

40,8

41

43,4

44,9

45

57,6Rank « 1 » means the best

138 133 131 125 109 99 94 66

RANK*


9The cost of labor is

a major competitive asset of the Tunisian market - the average

annual cost of Tunisian engineers is

largely competitive compared to the main competing

destinations ...

Source : International HR compensation leader 2019

COST OF THE LABOREngineer - Manager

Opérations - Manager

Operations – Operator - Professional

Engineer – Senior Professional

Opérations – Supervisor

Technician – Senior professional

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372%

309%

304%

269%

268%

258%

210%

206%

201%

175%

169%

100%

340%

299%

288%

270%

253%

246%

197%

193%

151%

147%

124%

100%

892%

661%

604%

604%

482%

439%

427%

413%

384%

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175%

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100%

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419%

406%

350%

309%

301%

279%

251%

240%

195%

139%

100%

429%

426%

402%

357%

349%

310%

307%

272%

245%

238%

132%

100%


10The country has also a multitude

of integrated and developed facilities aimed at promoting

R&D, production and training activities ...

Cyber parc

Technopoles

COMPETITIVENESS CENTERS, TECHNOPOLES AND CYBER PARKS • 10 Competitiveness centers and Technopoles

spread over the whole Tunisian territory focusing on the promising sectors of the Tunisian economy

• 18 regional cyber parks support new business creators during the incubation phase of business projects

• One of the biggest technology parks in Africa

• A surface area of 155 hectares

• More than 100 national and foreign ICT companies

• A surface area of 10,5 hectares

• A R&D center • An integrated facility

to host: - Academic and

research training activities

- Innovation and transfer of techno-logy activities

- Production and development acti-cities

• A surface area of 60 hectares

• More than 65 companies

• The technopole has 3 laboratories: - Microelectronic

systems- Advanced Material

Systems and nano-physical systems

- Microsystems of physical chemical and biological weapons

Innovation Center Tunisia


11... and has set up

a development program for

industrial parks, in line with its

national regional development

strategy

A LAND DEVELOPMENT PLAN THAT MEETS THE INDUSTRIAL SECTOR’S NEEDS

• Tunisia has more than 150 industrial parks covering more than 10 thousand hectares. The average price per square meter in the areas currently up for sale is about 40 TD / m² equivalent to around 12 € / m²

• Tunisia has set up a 2016-2020 program for the development of industrial parks aiming to develop more than 65 industrial parks for a total surface area of more than 2,000 ha at an estimated cost of more than 650 million Dinars, distributed as follows :- 51 regional development zones over a surface area of 1,508 Ha- 18 industrial parks over a surface area of 746 Ha in the rest of the

country • …as well as a program to renovate 60 industrial parks for a total

surface area of over 1,576 ha at an estimated cost of more than 150 million Dinars, distributed as follows :- 20 regional development areas over a surface area of 400 Ha- 40 industrial parks over a surface area of 1,176 Ha in the rest of the

country

2

1 11

2

5

3

1

6

2

1

1

2

3

7

2

5

n ZDR 1st groupn ZDR 2nd group

New industrial parks and industrial parks currently up for sale- 2017


12The penetration rates

of fixed and mobile internet have been

growing strongly over the 2013 – 2019 period driven by the

democratization of 4G and Data Boxes

PENETRATION RATE FOR

FIXED TELEPHONY DATA

PENETRATION RATE FOR

MOBILE TELEPHONY DATA

DISTRIBUTION OF SUBSCRIBERS

IN FIXED TELEPHONY DATA BY CONNECTION

2013

2014

2015

2016

2017

2018

2019

22,5

%

21,5

%

21,2

%

23,0

%

27,9

%

33,9

%

36,5

%

2013

2014

2015

2016

2017

2018

2019

30,7

%

47,2

%

61,9

%

62,8

%

65,1

%

75,8

%

75,2

%

4Mb/s 8Mb/s 12Mb/s Other

2017 67,5% t 24,7% s 3,6% s 4,2%

2018 54,2% t 34,1% s 8,0% s 3,7%

April 2019 47,2% t 38,0% s 11,3% s 3,5%

• The fall in internet access costs was accompanied by a significant impro-vement in ADSL access with speeds of 8.MB / s and 12MB / s

• The growth in the number of internet connections is driven by the demo-cratization of mobile data

• The mobile data penetration rate was 75.2% at the end of April 2019

• Tunisia has started preparations for the launch of 5G networks - a study on the advisability and the technical and economic conditions for the in-troduction of 5G is scheduled for the end of 2021


13 Type of incentive Rate of incentive / Tax Incentives Incentive limit

Regional Development(except negative list)

Zone 1 : 15%/ investment cost Zone 2 : 30%/ investment cost

Zone 1: 1,5 MDTZone 2: 3 MDT

Zone 1: Total deduction at 100% from the tax base for 5 years and payment of 10% after

Taking in charge of the employer’s contribution= 5 years

Zone 2: Total deduction at 100% from the tax base for 10 years and payment of 10% after

Taking in charge of the employer’s contribution = 10 years

Deduction from the corporate tax base, revenues or profits reinvested in the subscription to the initial capital or in its increase

Priority sectors15% /investment cost 1 MDT

Taking in charge of the employer’s contribution= 3 ans

Economic branches 15% /investment cost 1 MDT

Infrastructure subsidy (DR)

Zone 1: 65%

Zone 2: 85%

10% /project cost

Maximum limit 1MD


innovations (1/2)development and

investment, regional aims to promote

investment law which mentioned in the new of the priority sectors The ICT sector is one

14

Mapping of bonuses and incentives for

projects of national interest (PNI)

Incentive Type Incentive rate / Tax Incentives Incentive limit

Material investment : New technologies and productivity enhancement

50% component cost 500 KD

Intangible investment 50% component cost 300 KD

Research and development expenses


Certified trainings expenses 70% component cost 20 KD/company

Employability incentive Taking in charge of the of salaries according to management rate

Sutaibnable development incentives


PROJECTS OF NATIONAL INTEREST PIN

Eligibility criteria Process for obtaining bonuses and incentives Bonuses and incentives

Investment cost is higher than 50 MTD or crea-tion of minimum of 500 jobs over 3 years

Study of projects at the level of the l’Instance Tunisienne de l’Inves-tissement (Tunisian Investment Authority)

Investment incentives within the limit of 1/3 of the investment cost with a maximum 30 MTD

Tax exemption over a period up to 10 years

Infrastucture works taken in charge by the State

Support for the employer’s contribution to the social security scheme up to 10 years

Granting of non-agricultural state land: long-term rental or in symbolic dinar

Meets one of the 4 objectives of the investment law

Submission to the Investment Council for approval of advantages


innovations (2/2)development and

investment, regional aims to promote

investment law which mentioned in the new of the priority sectors The ICT sector is one

15

Eligibility criteria Process for obtaining bonuses and incentives Bonuses and incentives

Investment cost is higher than 50 MTD or crea-tion of minimum of 500 jobs over 3 years

Study of projects at the level of the l’Instance Tunisienne de l’Inves-tissement (Tunisian Investment Authority)

Investment incentives within the limit of 1/3 of the investment cost with a maximum 30 MTD

Tax exemption over a period up to 10 years

Infrastucture works taken in charge by the State

Support for the employer’s contribution to the social security scheme up to 10 years

Granting of non-agricultural state land: long-term rental or in symbolic dinar

Meets one of the 4 objectives of the investment law

Submission to the Investment Council for approval of advantages


Rue du Lac Huron, Les berges du Lac 1,1053 Tunis

Tél.: +216 70 248 148Fax: +216 70 248 100

@2019 Tunisia Investment Authority

www.tia.gov.tn


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ICT SECTOR - ema-germany.org