Tunisia
(Source : Embassy of India, Tunis)
Status of ongoing major investments by Indian PSU’s / Pvt. Sector in Tunisia and proposed Indian investments in Tunisia
India Tunisia Joint Venture TIFERT worth US$450 million was launched in 2006 in Tunisia for manufacturing Phosphoric Acid. Its production started in 2013. Two Indian companies Coromandel Fertilizers Ltd and the Gujarat State Fertilizers Ltd (GSFC) have 30% shares in the project.
The phosphate industry in Tunisia, which was among the top five in the world in 2010, is facing a global recession, due to rising production, particularly in Morocco, Brazil and Saudi Arabia, as well as the decline in demand for phosphate fertilisers, particularly from India.
Also the Phosphate extraction, production and transport operations in Mdhilla, governorate of Gafsa, were halted due to protests following the announcement of results of a staffing competition. Demonstrations were staged in Mdhilla, Metlaoui, Redeyef and Om Laârayes. Eyewitnesses said protesters blocked the road to buses transporting Gafsa Phosphate Company (French: CPG) workers. CPG Director in Mdhilla Khaled Ouergui said phosphate extraction operations in Jellabia and Mzinda had been brought to a standstill, along with processing in Mdhilla facilities. The transport of raw and commercial phosphate is also suspended. The Tunisian Indian Fertilizers JV, TIFFERT manages to keep the plant running inspite of disruption in the supply due to social unrest as the company has reserve stock; however disruption in the supply has been a cause of concern.
The Indian ship MT Tiger Harmony carrying Phospheric Acid cargo for Gujarat State Fertilizers and Chemicals (GSFC) that was stranded in Tunisian waters after running aground near TIFERT plant in Skhira port for about four weeks finally sailed after considerable efforts from Tunisian maritime authorities. Environmental activists were critical of TIFERT for polluting seawater and several adverse news articles were published in local media.
Analysis of Investment opportunities in Tunisia
Tunisian Government provides many incentives to promote foreign investment in Tunisia. About 3353 foreign companies operate in Tunisia in diverse sectors. The Government has primarily encouraged export-oriented FDI in key industrial sectors, such as call centers, electronics, aerospace and aeronautics, automotive parts, and textile/apparel manufacturing. Foreign participation is allowed in the privatization program of state-owned or state-controlled enterprises. This has attracted a significant share of Tunisia’s FDI in recent years. The privatization programme has taken place mainly in telecommunications, banking, insurance, manufacturing, and fuel distribution.