logo
What if Enfidha were to be the solution?

What if Enfidha were to be the solution?

African Manager20-05-2025

The Tunisian media have only picked up on the latest document from the World Bank, which forecasts growth rates for Tunisia. But this periodic conjuncture report, entitled 'Better Connectivity for Growth', didn't just talk about that.
This 24-page document, which is not the product of the IMF, which Tunisian head of state Kais Saïed dismissively calls 'Ommek Sannafa', depicts the economic situation in Tunisia fairly and realistically.
Below are some key points from the latest WB report:
In a country that has fallen behind in terms of economic development, the report states that 'Tunisia's growing dependence on domestic sources to fill the external financing gap poses medium-term risks to currency and price stability'.
The World Bank considers that 'the increase in domestic financing of public debt has strengthened the connection between the banking sector and the government budget, potentially affecting the credit market'.
The Bretton Woods institution remains the only one helping Tunisia without imposing reforms, and finds that 'the budget continues to be under pressure as limited economic activity affects tax revenues', predicting that 'assuming drought conditions ease, we expect a moderate recovery in growth in 2025–27, but downside risks remain high'.
In true not 'Ommek Sannafa' style, Alexandre Arrobbio, the head of the World Bank's operations in Tunisia, confirmed that 'Tunisia continues to demonstrate resilience in a complex global and national context'. It is he who raises the issue of connectivity. 'Better connectivity, particularly through improved port logistics, can be a powerful engine for job creation and economic growth,' he says.
The port of Enfidha has been struggling since 2017
Arrobbio has also unearthed the issue that has plagued all the post-2011 transport ministers for years. Like his predecessors, the current minister, Rachid Amri, chaired a working session on March 12 2025 devoted to measures to speed up the Enfidha deepwater port project.
Long before that, in February 2023, former minister, Rabii Majidi, who was later dismissed, announced that the evaluation of the call for tenders for the deepwater port was imminent.
Five years ago, the former CEO of the Ports Office, Sami Battikh, told AfricanManager that four groups, the Chinese CHEC and Bouygues, had been shortlisted for the Enfidha deepwater port project. Since then, a company has been set up to manage the Enfidha deepwater port project. Its only function is to issue invitations to tender for various assignments, including updating the market survey and conducting technical, economic and financial studies, as well as preparing a call for tenders. The fate of its predecessors is unknown.
TOS and TTN had already failed to bring the administration and STAM under control
'As a relatively small open economy, the performance of the port sector is crucial to Tunisia's economy. Efficient ports offer the opportunity to capitalize on Tunisia's geographical location along the Gibraltar–Suez maritime axis, accounting for over a third of global container traffic', explain analysts at the World Bank.
Tunisia's ports are equipped for Ro-Ro units, but not for container handling. This affects connectivity, congestion, and the operational efficiency of containers.
'Tunisia's equipment and infrastructure constraints are compounded by the complexity of handling goods in ports, resulting in long waiting times for containers and high logistics and storage costs for businesses,' they point out.
It is also known as the 'white wolf' by Tunisian experts, who criticize the managers of STAM for monopolizing the port of Rades, the only one capable of handling container traffic, and delaying this opportunity, which could bring Tunisia 4–5% of its GDP and reduce dwell times within 3–4 years, with greater long-term gains.
One solution is to divert attention away from the need to restructure STAM (Société tunisienne d'acconage et de manutention) by installing and implementing a TOS (Terminal Operating System).
'However, the full achievement of this objective has been delayed, primarily due to the slow implementation of the Liasse Transport across all Tunisian ports, delays in the deployment of TOS, and the fact that key modules of the system remain non-operational due to outdated handling equipment and machinery.
Consequently, the expected productivity gains for STAM and the more efficient spatial organization of the Port of Rades have yet to materialize,' writes the WB, which supported the project.
Furthermore, the large-scale deployment of the TTN (Tunisie Trade Net, an essential component of the TOS) to all players in all ports has been considerably delayed due to managerial denial of digitalization.
Furthermore, economic operators are still required to submit paper documents to customs before declarations are allocated to inspectors. Furthermore, most of the technical control agencies involved in import inspections lack operational IT systems to manage their tasks and automate exchanges with entities connected to the TTN.
Tunisia's one-stop shop for digitized foreign trade has certainly lost its luster since the departure of Karim Gharbi, its 'creator'!
Enfidha is desperately seeking a port
All of the problems mentioned in the WB report have been evident since the Ben Ali era, when the country's leaders had already implemented a suitable solution, a deep-water port at Enfidha, well before other Mediterranean countries did so.
The project was intended to stimulate national development by linking western Tunisia to the maritime east via deepwater ports. However, since the revolution, it has been the subject of regional disputes, with some advocating for Bizerte and others for Sfax.
Years later, the only things that remain are profound differences over the port's priority and uncertainties over its financing.
We can't rule out the possibility of it ending up in the hands of the Chinese, who are currently buying up almost everything in Tunisia, including a cement factory!

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tunisia–Nigeria Business Council officially launched
Tunisia–Nigeria Business Council officially launched

African Manager

time2 days ago

  • African Manager

Tunisia–Nigeria Business Council officially launched

The Tunisia–Nigeria Business Council (TNBC) was officially launched during the Afreximbank Annual Meetings (AAM), held from June 25 to 28, 2025, in Abuja (Nigeria), the Tunisia-Africa Business Council (TABC) announced on Wednesday. This is a strategic initiative led by TABC as part of its policy to strengthen economic ties with Sub-Saharan African markets. On this occasion, Chris Eruba was officially introduced as the president of the TNBC. The TNBC aims to become a key bilateral platform dedicated to structuring, enhancing, and promoting economic, industrial, commercial, and financial partnerships between Tunisia and Nigeria. TABC reaffirmed its commitment to supporting Tunisian companies in their expansion strategies across Sub-Saharan Africa, particularly in Nigeria, a country with over 220 million people and promising economic prospects. It also noted that Tunisian exports to Nigeria have quadrupled in one year, rising from 7 million dinars between January and April 2024 to 82 million dinars by the end of April 2025. Nigeria now ranks among the top Sub-Saharan destinations for Tunisian exports. Interested companies can register via the following link: [

Tunisia: 70% of country's exports go to EU
Tunisia: 70% of country's exports go to EU

African Manager

time3 days ago

  • African Manager

Tunisia: 70% of country's exports go to EU

Riadh Bezzarga, Director of Market Studies and Strategy at the Export Promotion Center (CEPEX), announced that Tunisian exports in 2024 are estimated at 62 billion dinars, while exports to African markets (goods only) reached just 0.25 billion dinars, about 4%. Speaking on Express FM' during the first edition of the Africa Business Partnership Days held at the Exporters' House and running through June 25, Bezzarga noted that five main markets: Senegal, Côte d'Ivoire, Guinea, Cameroon, and Gabon alone account for nearly 50% of Tunisia's exports to Africa. He pointed out that Tunisia is working to diversify its export markets, as 70% of its exports currently go to the European Union. This heavy dependence poses a risk in the event of crises in Europe. Accordingly, efforts have been made to reorient exports toward America, Africa, and Asia. A specific strategy for sub-Saharan Africa has been implemented, expanding beyond goods to include services in sectors such as healthcare, private universities, banking, and new technologies. He also noted that over 80% of Tunisian exports come from fully export-oriented companies, meaning the actual share of exports to Africa exceeds 4%, especially when compared to just 1% twenty years ago.

China is set to be resilient to global trade shocks
China is set to be resilient to global trade shocks

African Manager

time6 days ago

  • African Manager

China is set to be resilient to global trade shocks

The year started for China with a positive tone on the back of a turnaround in private sector sentiment, driven by a more supportive economic policy mix, optimism around the country's capabilities on artificial intelligence (AI), and a stabilization in manufacturing activity. Importantly, this came after years of subdued investor appetite and volatile growth on the back of real estate wounds, regulatory stringency, limited official stimulus, and the trauma from hard pandemic lockdowns. Such positive outlook and turnaround translated into stronger activity and constant upgrades in growth expectations since September 2024. However, global macro prospects were suddenly shaken by a radical shift in US trade policies in February, when president Trump announced a massive increase in import tariffs. China, in particular, was singled out by the US with 'embargo like' 140% tariffs and much less room for exemptions. After bilateral negotiations started, tariffs were reduced to a more manageable but still high 40% rate. Despite this major shock, China's economy appears to be resilient. In fact, across major economies, China seems to be the least affected by growth expectations downgrades since US tariffs 'Liberation Day,' even if the country is by far the largest exporter globally. 2025 growth expectations downgrades (Bloomberg consensus, % real GDP growth for the year) Sources: Bloomberg, QNB analysis In our view, three main factors sustain a more optimistic economic take on China in the face of the US policy shock. First, despite being the world's largest exporter and a key node in global manufacturing, the overall impact from US tariffs on China's growth is very limited. This is largely due to the declining importance of the US as an export destination and Beijing's strategic reorientation of trade flows. In the early 2000s, the US accounted for nearly 20% of Chinese exports, but this share has declined to around 15% in recent years, equivalent to around 2.8% of the country's GDP. Exports grew stronger in markets such as Southeast Asia, the EU, and Belt and Road countries, helping to offset US-driven losses. Moreover, exports themselves have been declining in overall importance to China's economic model, now contributing less than 20% to GDP – compared to 35% in 2006 – amid a policy-led pivot toward domestic consumption, high-tech innovation, and services. These structural shifts, coupled with adaptive trade strategies, have helped insulate China from the full brunt of Trump-era tariffs, reducing their macroeconomic impact and sustaining the country's external surplus. Chinese exports of goods in perspective (USD Bn, total for 2024) Sources: Haver, QNB analysis Second, tariffs are blunt tools in a world of fragmented supply chains, and China's central role in global production networks has significantly diluted their effectiveness. Unlike the bilateral trade flows of the past, modern goods cross multiple borders during assembly, making it hard to isolate national value added. Multinational firms adapt quickly, shifting final assembly to third countries while maintaining Chinese inputs through transhipment. These workarounds often outpace enforcement, undermining the intent of protectionist policies. Additionally, a substantial share of Chinese exports – such as critical components in electronics, machinery, and pharmaceuticals – are not easily substitutable and remain essential to US firms and supply stability. As a result, tariffs are unlikely to trigger reshoring and China is expected to retain its role as an indispensable link in global manufacturing. Third, US tariffs are expected to be offset by the devaluation of the Chinese renminbi (RMB), particularly in real effective terms, which is enhancing China's price competitiveness globally. Since the escalation of the 'trade war' in February, the RMB has weakened against the USD, but even more so against a broader basket of currencies, resulting in a meaningful depreciation of China's real effective exchange rate (REER). This has lowered the relative cost of Chinese exports in non-USD markets, helping Chinese firms gain market share globally despite higher US tariffs. The REER adjustment acts as an automatic stabilizer for China. In effect, the RMB's adjustment is helping to preserve or even increase external demand, ensuring continued export surplus, further underscoring the limitations of unilateral trade barriers. All in all, China's growth prospects this year remain moderately robust despite continued trade tensions. This is due to a structural decline in US export dependence, the ineffectiveness of tariffs in a globalized supply chain environment, and the competitive tailwind from a weaker RMB collectively cushioning the Chinese economy from material external shocks.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store