The World Bank has announced a new US$500 million operation to promote private investment and create opportunities for small businesses in Tunisia while protecting vulnerable households and increasing energy security.
The new operation will support concrete actions to simplify import and export procedures, open many sectors to investment, make it easier for small businesses to access credit and bid for government contracts, ensure social safety nets reach the poorest and help build human capital, and create a more sustainable and greener energy sector.
Minister of Development and International Cooperation, Zied Ladhari said, “Digitizing customs procedures will mean fewer opportunities for corruption, and will send a strong signal to investors that Tunisia is open for business. Along with creating opportunities for small businesses, which we know are a vital source of job creation, we also want to make sure they have access to credit by implementing the law on ‘movable’ collateral. Instead of ‘fixed’ collateral such as buildings or land, it will be possible to secure a loan against assets such as inventory – the only kind of assets that businesses run by young people or women tend to have.”
The Investment, Competitiveness and Inclusion Development Policy Framework was designed to help implement major goals outlined in the government’s Five-Year Development Plan 2016-20. The operation is based on three components, with the first aimed at implementation of the new investment laws. This will include eliminating 27 of the 127 procedures needed to clear customs. The remaining procedures will be digitized, to make the process more predictable and efficient.
As mandated by law, government procurement will also be digitized to make it easier to bid for public contracts. This will set the stage for achieving the goal of 20% of government contracts awarded to small businesses.