Signature Of The Competitiveness Pact For The Automotive Industry In Tunisia

The Tunisian Automotive Association “TAA” is proud to announce the signing of the  competitiveness pact for  of the automotive industry between the Ministry of Industry, Mining and Energy under the high patronage of the Tunisian Government Presidency  and the private sector represented by the TAA under the aegis of  Utica and with the support of  GIZ,  which took place  on July 6, 2022, on the sidelines of the Conference on the National Strategy of Industry and Innovation for 2035.

Through this Pact, the public sector represented by the Ministry of Industry, Mines and Energy under the high patronage of the government presidency and the private sector represented by the TAA and under the aegis of Utica, are committing jointly to promote the automotive industry  to improve its competitiveness and develop its exports and employment. 

The automotive sector represents an important growth leverage  for the Tunisian economy.  Thus, this partnership between the public and the private sector aims to develop the volume of Tunisian exports of the automotive components from 7.5 billion dinars currently to 14 billion dinars by 2027. At the same time, it also aims to create 60,000 additional jobs, compared to the 90,000 jobs already existent. In the medium term, the pact aims to attract investment in the electric and smart car manufacturing sector of leading companies in this field as well as increasing the investment in the sector from 12% of GDP to 22% and the integration rate from 40% to 48%.

This pact represents a set of detailed measures to be carried out on both sides on 5 essentials pillars:

  • Infrastructure
  • Regulatory frame
  • Employment and training
  • Research and Development
  • Visibility and Image

Among the actions stipulated, in the infrastructure pillar, the government has committed to the establishment of a deep-water port by 2026,  as well as quays 8 and 9 at the Rades port, the upgrading of ports and industrial zones throughout the territory as well as the development of sites for car manufacturers. 

From a regulatory point of view, the government will simplify 50% of administrative procedures and digitalize at least 60% of it. The government will introduce investment  and reinvestment bonuses and  significantly increase the amount of foreign investment allowed to companies. For its part, the private sector will put in placea code of performance and good practices and communicate better on the use of the Green Corridor for customs clearance.

In terms of employment and training, the private sector will set  up its needs in terms of competencies, technical and skills references. The government will then develop specialized branches and alternance training in line with these needs.  At the same time, the private sector is committed to mobilize its professionals for education and training and to setting up hundreds of internal professional trainings.

On the R&D level, the government will put in place a competence center dedicated to the automotive sector, and the private sector will finance 10 R&D projects and boosts the entrepreneurial ecosystem by setting up an inverted incubator.

In terms of visibility and image, the government and the private sector have undertaken to set up a number of communication and lobbying actions to promote Tunisia’s image in the automotive sector and give it visibility.

This agreement will be monitored within the framework of an inter-ministerial task force to follow up its implementation.

About TAA

 TUNISIAN AUTOMOTIVE ASSOCIATION is a Tunisian non-profit association created in February 2016 at the initiative of the main players in the automotive components industry in Tunisia in order to promote exchanges, collaboration and synergy between companies in the automotive components industry sector and to support the Tunisian authorities to develop and promote the sector. It strives to create an attractive environment for the development of the automotive industry in Tunisia. The TAA organizes and actively participates in all events in Tunisia and abroad in order to promote and support the Tunisian automotive sector and the companies that compose it

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