Automotive Industry in Tunisia

Tunisia,
An attractive destination for
Automotive Industry
Content
Tunisia
Facts & Figures
1
Tunisia
Post-revolution
2
Automotive
Industry in Tunisia
3
Why Tunisia?
4
Content
Tunisia
Facts & Figures
1
Tunisia
Post-revolution
2
Automotive
Industry in Tunisia
3
Why Tunisia?
4
Tunisia Facts and Figures
Overview
Area
Coastline
Population
2011
163,610 sq km
1,148 km
10,629,186
Tunisia, a strategic
location in the
center of Three
continents
Economy
GDP(official exchange rate):
$48,9 billion (2011 est.)
GDP per capita (PPP)
$9 500 (2011 est.)
GDP – composition by sector
Agriculture: 10.6%
Industry: 34.6%
Services: 54.8% (2010 est.)
Labor force(2011)
3.904 million
Unemployment rate
16% (2011 est.)
People and society
Urban population
67% of total population
(2010)
Life expectancy at birth
75 years
Health expenditure
6,2% of GDP
Physicians density
1.19 physicians/1,000
population
School life expectancy
15 years
Literacy (age 15 and over can read and write)
75%
Education expenditure
7,1% of GDP
Sources:
CIA world factbook World bank,
Agence de promotion de l’investissement extérieur, FIPA-Tunisia
Infrastructure and communication
Airports (with paved runway)
16
Ports and terminals
5
Railways
2 165 km
Roadways
19 232 km
Telephones – main lines in use
1,3 million
Telephones – mobile cellular
11,11 million
Government
Chief of state: President Moncef MARZOUKI (since 13/12/2011)
Head of government: Prime Minister Hamadi JEBALI (since
14/12/2011)
Elections: president elected by Constituent Assembly; Last election
held on 12 December 2011.
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Content
Tunisia
Facts & Figures
1
Tunisia
Post-revolution
2
Automotive
Industry in Tunisia
3
Why Tunisia?
4
Tunisia Post revolution. What makes Tunisia different today?
 A 217-member "Constituent Assembly"
was elected on 23 October 2011 ;
 More than ten political parties (most of
them created after the revolution) have
shared the Assembly’s seats ;
 The Constituent Assembly is
mainly
mandated to draft a new constitution, and
prepare for the next legislative and
presidential elections.
 A coalition government has
appointed in December 2011 ;
A new environment
in almost one year
 “ This revolution should help the new
government to provide an enabling
environment. It should put in place
modern and transparent institutions
to encourage accountability and good
governance and ensure fair and
transparent rules of the game. It
should slay, once and for all, the
dragon of corruption.
Christine Lagarde
Managing Director, IMF
been
 New ministries were created
New constitution,
new political system
and new
government
Actions already in
progress
 Reform of public administration : A new ministry
was created in order to assess public services quality,
review public administration procedures and
implement an anti corruption culture and mechanism.
 Review and simplification of the fiscal system.
The new government issued new fiscal rules in order to
make the fiscal system more transparent, equitable
and simple and also to promote local and foreign
investment
 Resolution of social conflicts. Negotiations with
the first Tunisian trade union led to several
agreements related to the different economic sectors.
 “ I have every confidence in the
responsible decisions of the future
Tunisian governments that will make
all efforts for the real welfare of the
people. In favor of true political and
civil freedom, economic prosperity,
social justice and an open and tolerant
society. “
Horst-Wolfram Kerll, Ambassador
of Germany in Tunisia
 “ We want to make Tunisia the best
place for investment.”
Caroline Akers, head of the Africa
Department of UK Trade and
Investment
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Content
Tunisia
Facts & Figures
1
Tunisia
Post-revolution
Automotive
Industry in Tunisia
2
3
1.Current situation and
future opportunities
2.Testimonials
Why Tunisia?
4
Automotive Industry in Tunisia- Current situation and future opportunities
Automotive Industry in Tunisia Today
 84 companies employing more than 60 000
people and realizing a turnover of 2 billion dollars ;
 Automotive components manufactured in Tunisia
include:
- Electronic components
- Mechanical components
- Plastic components
- Security components
- Cable
- Wire harnesses
- Tyres
- Filers
- Software
- ….etc
 The automotive industry in Tunisia represents
around 5% of the total GDP ;
Automotive market in Tunisia, Algeria and
Libya
 More than 60 000 new registrations in Tunisia in
2011. 60 000 in Algeria and 20 000 in Libya
 VW vehicles represent 20% of the Tunisian fleet
(cars and commercial vehicles).
Automotive Industry players in Tunisia
 Automotive industry players in Tunisia
include international groups such
us VALEO, SAGEM, LEONI, YAZAKI,
FUBA, LEAR …
 Several German and Japanese
flagship Automotive Companies
are represented in Tunisia: LEONI,
Kromberg
&
Schubert,
Yazaki,
Sumitomo
 Tunisia is the unique country in Africa
having
worldwide
recognized
automotive companies such as Coficab,
Cofat,
GIF, Telnet. Most of these
companies have international branches.
Average annual
increase of car
registrations
20%
Part of VW in
total new
registrations
25%
8
Automotive Industry players in Tunisia – What do they think?
« The Tunisian people are highly educated, they are very dedicated, very disciplined, so we can transfer some of the highest technologies
that’s available in the world here in Tunisia, and in a big quick period of time we are able to produce parts that go in airplanes.»
«The life in Tunisia for a person that is an expert has been very enjoyable, in many levels. First of all, people are very welcome, and it’s very
safe to live in this country.»
Thomas Wendt, General Manager, EUROCAST
« Tunisia is a country where it is very pleasant to live not only thanks to its history as the country is full of historical footsteps but also
thanks to the modernity that the country offers and the friendliness of its inhabitants.»
« What encouraged most our development in Tunisia is the level of individuals, their ability to learn, and their ability to respect the very
specific work instructions of aeronautics and thus obtain a level of product quality that is fundamental to aircraft industry.»
« What we found in Tunisia : High level engineers, managers and technicians Performing Import-export logistics (A truck that leaves Tunis
on Saturday is in Marseilles on Monday) Wage inflation “under control” (about 5 % per year) A network of local suppliers in several fields
(tools, equipment, outsourcing services, etc) Simplified custom procedures.»
Mr. Gaby Lopez, Director, ZODIAC
«Why Tunisia? Because there are many decisive factors; its competitiveness and its proximity to Europe are essential criteria. Other
important aspects include: reliability, we are in a long term investment, so we're here for sustainable development in other words for
stability, for the quality of infrastructure and for the commitment of Tunisian authorities to development which is an important point. All
the assistance that was provided by all Tunisian institutions when we were starting was extremely decisive and we have been conscious of
that since the beginning of the project.»
Christian Froger, Director, HUTCHINSON
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Content
Tunisia
Facts & Figures
1
Tunisia
Post-revolution
2
Automotive
Industry in Tunisia
Why Tunisia?
3
4
1.Fully integrated site
and developed
infrastructure
2.Available skilled
labor
3.Committed
government and
convenient laws and
regulations
4.A country you would
like to live
How Tunisia would be suitable for the next abroad implementation of Volkswagen –
Committed government and convenient laws and regulations
Special Care and Funding
Incentives
 Customized treatment to VW investment at Senior level
 Potential funding of the project . Tunisia can finance partially
the project through public funds or private funds.
 Several bilateral and multilateral trade agreements
within the region and globally (UE, Arad, Aghadir...etc.)
Convenient regulations and attractive advantages
 Freedom of investment in various sectors of activity with the
right to hold 100 % of the capital in the manufacturing industries
projects.
 Free transfer of profits and capital.
 Non double taxation agreements signed with the main economic
partners.
Very simple incorporation procedures: A one stop shop has been
created for companies’ incorporation in APII offices.
 Free land in case of projects having high impact on
the national economy
 Investment premium up to 20% of the total
investment depending on the impact on the national
economy.
 Other
investment
premiums
for
regional
development (8%, 15% and 25% ) of the investment
depending on the location.
 Several employment incentives related to regional
development,
employment of fresh university
graduates and employment of non skilled labor and
technicians
 Training incentives
 Innovation Incentives up to 50% of the investment
 Exemption from customs duties, VAT and consumption
duties on the importation of equipment, raw materials,
products and semi-products needed for the company’s
activity.
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How Tunisia would be suitable for the next abroad implementation of Volkswagen –
Fully integrated site and developed infrastructure
Fully integrated site
Automotive Industry players in Tunisia
Bizerte
 Government is ready to dedicate 250 to 300 hectares to VW at
low cost and provide needed infrastructure at its cost.
 Industrial, logistics and administrative facilities will be provided
on site in order to support the supply chain process of the
Automotive plants to be settled in and around the selected site.
 Land plots will be also made available for VW suppliers to set
their operations
Tunis
Algeria
 All sites are located nearby reservoirs of labor from where the
industry could select its required ability and skills. We are talking
about 1,5 million inhabitants with 30 km.
Deep water port
Sousse
Sfax
 3 locations will be offered to VW for selection.
Infrastructure
Libya
 Site will be nearby the highway
 railway network will assured between VW facilities and the port
 A dedicated dock will be prepared on the nearest harbor in order
to better serve ;
Automotive Site
 Airport is just 30 km far away
Airport
reservoir of labor
(more than 500 000)
 Telecom infrastructure in line with European standards
Harbor
 hotels and accommodation in with international standards are
available.
Highway
Planned highway
 Public transportation will be assured for workers
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How Tunisia would be suitable for the next abroad implementation of Volkswagen –
Labor: Skilled and available
Skilled and trained labor
Education’s indicators
 Tunisia’s labor characteristics are:
 8% of GDP allocated to education. 1.25 to R& D
- High level education compared to similar countries
- Skilled and disciplined
- Low cost compared to European and similar countries
(See labor cost comparison table)
- Arabic and French speaking. English is taught starting
the age of 10. German is also widely taught in high
schools.
 Tunisian Engineers are working worldwide including
Germany where many of them are holding high positions
in Automotive Companies
 Lowest labor cost among Eastern Europe and North Africa
 Education at school is mandatory till the age of 15.
Government Incentives related to Empoyment
 4% of the population are university-level students
 30% of students follow courses in computer sciences,
engineering sciences and other technical subjects
 400 000 students
 200 university-level establishments
 140 vocational training centers
 28 000 researchers
 More than 630 labs & research units
 8 competitiveness poles
In terms of efficient Education & Training system,
Tunisia is ranked 29th out of 133 countries (1)
 Coverage of the labor charges by the state for periods
ranging from 5 to years
 Coverage of the labor charges to freshly graduates up to 7
years (around 17%)
 State contribution in the first year to 50 % of the
wage for university graduates.
 Several programs for training
(1) WEF, 2009-2010
Minimum wages by country (in $ per year)
France
17,701
Turkey
7,069
Brazil
4,350
Morocco
2,696
Tunisia
2,959
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How Tunisia would be suitable for the next abroad implementation of Volkswagen –
Geographic position and proximity to VW markets
Tunisia, a strategic location in the
center of Three continents
Flight Duration
 Less than 3 hours are needed to cover the major part of the European countries
 Asian continent could be reached in 4 hours
 Less than 2 hours are required to reach all the Maghreb countries.
Duration in Ferry
 10 hours to Palermo, Italy
 24 hours to Marseille, France
 24 hours to Genova, Italy
Country
City
Algeria
Austria
Belgium
Bulgaria
Cameroon
Czech Republic
Denmark
Egypt
France
Germany
Italy
Libya
Morocco
Netherlands
Poland
Portugal
Qatar
Russia
Senegal
Slovakia
Slovenia
UAE
UK
Algiers
Vienna
Brussels
Sofia
Yaounde
Prague
Copenhagen
Cairo
Paris
Berlin
Rome
Tripoli
Rabat
Amsterdam
Warsaw
Lisbon
Doha
Moscow
Dakar
Bratislava
Ljubljana
Abu Dhabi
London
Flight Duration
58 mn
1h, 56 mn
2h, 16 mn
1h, 49 mn
4h, 44 mn
2h, 9 mn
2h, 44 mn
2h, 41 mn
2h, 4 mn
2h, 28 mn
55 mn
47 mn
2h, 8 mn
2h, 30 mn
2h, 42 mn
2h, 22 mn
5h, 17 mn
3h, 48 mn
4h, 43 mn
1h, 58 mn
1h, 40 mn
5h, 41 mn
2h, 33 mn
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How Tunisia would be suitable for the next abroad implementation of Volkswagen –
A country you would like to live.
Wide entertainment and leisure's means
Low Cost of living
 International Living” 2011 ranking: Tunisia still
first in quality of life in the Arab world
With a score of 60/100, and ahead of several other
countries, Tunisia ranks in the lead of Arab countries and
second in Africa (in a tie with South Africa, Botswana,
Namibia and Morocco) in terms of quality of life. This
ranking developed by the Irish magazine 'International
Living' and covering 192 countries is realized during the
month of January each year to identify places where life is
good. Nine criteria are taken into consideration in
calculating the index. Tunisia responded favorably to most of
these criteria with good scores in safety and risk (86/100),
climate (85/100), cost of living (79/100), leisure and culture
(70/100), health (67/100), economy (57/100). Tunisia has
improved its score by one point compared to that of 2010.
besides, Tunisia is offering
Prices in Tunisia
 Various landscapes (mountain, sea, forest, Sahara, oasis,..);
 Fresh and health foods;
 Multiples archaeological sites, museums, theatres, etc;
 Several Golf courses, etc.
 Luxurious Hotels;
 Efficient health system, skilled medical staff ;
 Low rate of criminality;
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What can Tunisia offer
What makes the difference?
What is missing?
 Excellent geographical position
 Special care to VW investment at senior level
 Most competitive cost base in EuroMed
 Investment code in line with international standards
 Modern infrastructure and readiness to fit it into VW
requirements
 Excellent package of incentives on
 Land
 Premiums
 Employment and training
 Innovation
 Fiscal
 Excellent investment environment
 Free investment
 Free transfer of capital and profits
 No VAT on equipment and raw materials.
 Several trade agreements.
 High skilled manpower and readiness to offer customized
training programs.
 Excellent living standards for foreigners
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