Foreign investments

Tunisia records a 31% drop in foreign investments

The Foreign Investment Promotion Agency (FIPA-Tunisia) revealed a 31% drop in foreign investment during the first quarter of 2021 compared to the same period last year.

FIPA said the coronavirus pandemic has played a negative role in attracting foreign investment in most sectors.

He said investments had increased from TND 2.5 billion ($ 919 million) in 2019 to TND 1.8 billion ($ 662 million) last year.

They reached 344.6 million TND ($ 127 million) in March compared to 503.6 million TND ($ 185 million) during the same period in 2020.

Official figures revealed that investments increased by 17.5% in 2021, topping TND 17 billion ($ 6.25 billion), or 14% of GDP.

At the same time, investments announced in the Tunisian industrial sector fell by 27.3% at the end of March.

The Agency for the Promotion of Industry and Innovation (Agency for the Promotion of Industry and Innovation) reported that investment has fallen remarkably in the building materials, leather, footwear industries. and mechanical and electrical industries.

In a related context, Standard & Poor’s (S&P) Global warned on Tuesday that a default on Tunisia’s sovereign debt could cost the country’s banks up to $ 7.9 billion, or 102% of total debt. equity.

The Tunisian economy has already been hit by the pandemic, with a GDP contraction of 8.8% last year, according to the International Monetary Fund (IMF).

Mohamed Damak, analyst at S&P, said defaulting on sovereign debt would cost banks 102% of its equity.

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