Location:
Northern Africa,
Capital City:
Tunis
Area:
total: 163,610 sq km
land: 155,360 sq km
water: 8,250 sq km
Land boundaries:
Total: 1,495 km
border countries (2):
Algeria 1,034 km,
Libya 461 km
Coastline: 1,148 km
Total: 2643 km

Tunisia


Climate:
temperate in north with mild,
rainy winters and hot,
dry summers;
desert in south
Terrain:
narrow coastal plain,
mountains in north;
hot, dry central plain;
semiarid south merges into the Sahara
Elevation:
mean elevation: 246 m
elevation extremes: lowest point: Shatt al Gharsah -17 m
highest point: Jebel ech Chambi 1,544 m
Natural resources:
petroleum, phosphates, iron ore, lead, zinc, salt
Land use:
agricultural land: 64.8%
arable land 18.3%; permanent crops 15.4%; permanent pasture 31.1%
forest: 6.6%
other: 28.6% (2011 est.)
Irrigated land:
4,590 sq km (2012)
Population – distribution:
the overwhelming majority of the population is located in the northern half of the country; the south remains largely underpopulated
Natural hazards:
flooding;
earthquakes;
droughts

People and Society
Unlike many of its North African and Middle Eastern neighbors, Tunisia will soon be shifting from being a youth-bulge country to having a transitional age structure, characterized by lower fertility and mortality rates, a slower population growth rate, a rising median age, and a longer average life expectancy. Currently, the sizable young working-age population is straining Tunisia’s labor market and education and healthcare systems. Persistent high unemployment among Tunisia’s growing workforce, particularly its increasing number of university graduates and women, was a key factor in the uprisings that led to the overthrow of the BEN ALI regime in 2011.
Tunisia has a history of labor emigration. In the 1960s, workers migrated to European countries to escape poor economic conditions and to fill Europe’s need for low-skilled labor in construction and manufacturing. The Tunisian Government signed bilateral labor agreements with France, Germany, Belgium, Hungary, and the Netherlands, with the expectation that Tunisian workers would eventually return home. At the same time, growing numbers of Tunisians headed to Libya, often illegally, to work in the expanding oil industry. After mass expulsions from Libya in 1983, Tunisian migrants increasingly sought family reunification in Europe or moved illegally to southern Europe, while Tunisia itself developed into a transit point for sub-Saharan migrants heading to Europe.
Following the ousting of BEN ALI in 2011, the illegal migration of unemployed Tunisian youths to Italy and onward to France soared into the tens of thousands. Thousands more Tunisian and foreign workers escaping the civil war in Libya flooded into Tunisia and joined the exodus. A readmission agreement signed by Italy and Tunisia in April 2011 helped stem the outflow, leaving Tunisia and international organizations to repatriate, resettle, or accommodate some 1 million Libyans and third-country nationals.
Population:
11,403,800 (July 2017 est.)
Nationality:
Tunisian(s)
Ethnic groups:
Arab 98%, European 1%, Jewish and other 1%
Languages:
Arabic (official, one of the languages of commerce), French (commerce), Berber (Tamazight)
Religions:
Muslim (official; Sunni) 99.1%, other (includes Christian, Jewish, Shia Muslim, and Baha’i) 1%
Language and the Society
Modern-day Tunisians are a mixture of Berber and Arab stock. The Berbers, the indigenous people of North Africa, have no generic name for themselves. The Romans called them barbari, or “barbarians,” the term applied to those peoples who lived outside the framework of Greco-Roman civilization and from which the designation Berber probably comes. Of stocky physique and having a high incidence of light hair and blue eyes, the Berbers are Caucasians akin to other Mediterranean peoples.
The Arab component of the society was introduced during the conquests of the seventh, the eleventh, and succeeding centuries. Racially, the Arabs brought a slender build, dark eyes and hair, and darker skin to the community from which most modern Tunisians are descended. The Berbers quickly accepted the religion, language, and culture of the invaders and intermarried with them. In modern times most Tunisians claim Arab ancestry, speak Arabic, profess Islam, and find only traces of Berber culture in their lives.
Arabic is the official language of Tunisia and in its North African Maghribi form constitutes the native language of virtually the entire population. Berber, the indigenous tongue, is spoken by substantial ethnic minorities in Algeria and Morocco, but in Tunisia only about 1 percent of the population use it as their mother tongue. Berber speakers, who numbered about 70,000 in the mid l980s, occupy villages on the edge of the desert in such areas as Sened, Matmata, Jerba Island, and Nefusa on the Libyan border. They also inhabit the oasis of Ghadames. Half of the population speaks French as a second language, and many French-educated Tunisians find themselves more at ease with French than with Arabic.
Four varieties of Arabic are in use in Tunisia: classical, modern literary (or modern standard), colloquial (or dialectical), and intermediary (or “educated”). The classical Arabic of the Quran is the basis of Arabic and the model of linguistic perfection, according to orthodox Islamic precepts. It is the vehicle of a vast historical, literary, and religious heritage, and individuals with a knowledge of classical Arabic can converse with their counterparts throughout the Middle East. Classical Arabic is employed for religious purposes or sometimes for literary or rhetorical emphasis.

Education
Tunisian education system was built on the French model, therefore, the focus of the education reformers was to Arabize curriculum and faculty at nation’s schools and universities. Tunisia adopted a phased approach towards Arabization. Given the number of Francophone nationals and the absence of qualified Arabized teachers to teach scientific subjects, policymakers maintained French both as a foreign language and as a medium of instruction for math and science in primary education. Humanities and social sciences were Arabized incrementally, initially in primary and subsequently in secondary education. In the 1970s, the decision was made to extend Arabization to all subjects in post-primary education, except vocational, professional, and technical tracks. At the university level, French was maintained as the language of instruction in technical institutes and science faculties.
The total adult literacy rate in 2008 was 78%. Education is given a high priority and accounts for 6% of GNP. A basic education for children between the ages of 6 and 16 has been compulsory since 1991. Tunisia ranked 17th in the category of “quality of the [higher] educational system” and 21st in the category of “quality of primary education” in The Global Competitiveness Report 2008-9, released by The World Economic Forum.
The academic year runs from October through to June, and the medium of education in Arabic. Students are tested at the end of each trimester, through oral and written tests, and practical examinations too. The initial phase of their free basic education begins with 6 years at primary school. The final 3 years of preparatory education take place at middle school. Here a score of over 50% is required to pass the examination for the Diplôme de Fin d’Études de l’Enseignement, that opens the door to secondary school. The four years of secondary education are open to all holders of Diplôme de Fin d’etudes de l’Enseignement de Base where the students focus on entering university level or join the workforce after completion. The Enseignement secondary is divided into two stages; general academic and specialized.
The higher education system in Tunisia has experienced a rapid expansion and the number of students has more than tripled over the past 10 years from approximately 102,000 in 1995 to 365,000 in 2005. The gross enrollment rate at the tertiary level in 2007 was 31 percent. In total, there are 13 universities, 24 institutes of technological studies and 6 higher institutes of teacher training. The Zaitouna Mosque and University illustrated here are thought to have been established in the year 732. It has played a prominent part in the history, religious life and culture of this ancient land, although more recently it has struggled to keep up with change.

Economy
Tunisia has made important strides to advance its democratic transition, but the country remains fragile to economic, security and social shocks. Growth has been too low to make a significant dent in unemployment, fiscal and current account deficits are elevated, inflation has risen and popular discontent about economic conditions is high, particularly among youth and in interior regions. The national unity government—a coalition of the main political parties, worker and trade unions—has adopted a consensus-building reform approach.
In 2017, the economy grew by 2 percent following 1 percent and 1.1 percent in 2016 and 2015, respectively, driven by robust private consumption and a rebound in investment. However, the contribution of exports and investment to growth remain significantly below their levels before the 2011 Revolution. On the production side, growth in 2017 was driven mainly by agriculture and services, while industrial and non-manufacturing industries (i.e., phosphate, oil) have not fully recovered despite the Dinar depreciation, due to social movements in mining regions, low oil prices and reduced investment in prospection.
Unemployment remains high at 15.5 percent in 2017 despite a low labor force participation, at about 50 percent, mainly due to the weak participation of women (28 percent). Most of the unemployed are low-skilled but university graduates have the highest unemployment rate, which increased from 15 percent in 2005 to 23 percent in 2010 and 31 percent in 2017. Unemployment rates are also much higher among women and in interior regions. The national unity government—a coalition of the main political parties, the largest workers’ and trade union formed almost two years ago—has set its priority as strengthening the security environment, improving the business environment, ensuring macroeconomic stability, fiscal sustainability and restarting growth. It has so far adopted a gradual and consensus-building approach to reform in the presence of strong workers’ unions and private sector organizations.
Economic growth is projected to expand modestly by 2.7 percent in 2018 through sustained agricultural and services growth, continued strengthening of tourism, and gradual recovery of tourism, phosphate, and manufacturing. In the medium term, economic growth is projected to pick up gradually to 3.5 percent in 2019/20 against a backdrop of improved business climate through structural reforms and greater security and social stability. While the government is deploying resources to improve the security situation, the high level of youth unemployment notably in the lagging regions as well as rising inflation may reignite social tensions. The government also faces the challenge of balancing between social stability and the need for reform, which highlights the importance of promoting greater social and economic inclusion to create sufficient support for reform. Moreover, reforms to stimulate private sector growth, job creation and entrepreneurship are key to creating opportunities and hope for the future.
GDP (purchasing power parity):
$135.9 billion (2017 est.)
$132.8 billion (2016 est.)
$131.5 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate):
$39.88 billion (2017 est.)
GDP – real growth rate:
2.3% (2017 est.)
1% (2016 est.)
1.1% (2015 est.)
GDP – per capita (PPP):
$12,000 (2017 est.)
$11,800 (2016 est.)
$11,800 (2015 est.)
Gross national saving:
13.8% of GDP (2017 est.)
13.5% of GDP (2016 est.)
12.5% of GDP (2015 est.)
GDP – composition, by sector of origin:
agriculture: 10%
industry: 25.9%
services: 63.5% (2017 est.)
Agriculture – products:
olives, olive oil, grain, tomatoes, citrus fruit, sugar beets, dates, almonds; beef, dairy products
Industries:
petroleum, mining (particularly phosphate, iron ore), tourism, textiles, footwear, agribusiness, beverages
Population below poverty line:
15.5% (2010 est.)
Budget:
revenues: $9.397 billion
expenditures: $11.61 billion (2017 est.)


Agriculture
Agriculture plays a leading role in Tunisia’s economy, with approximately 16% of the country’s workforce engaged in the agricultural sector. Agriculture contributes about 12% to the country’s GDP, and the sector is growing at around 5% per year. Historically, Tunisia’s agricultural system was based on small family farms that grew subsistence crops with little market integration, but larger agricultural enterprises are increasingly prominent. Public land may be leased by the government to private farmers or managed directly by the Ministry of Agriculture. Foreigners cannot own agricultural land but may obtain long-term leases.
Because of the EU’s importance to Tunisia’s trade, the government tends to follow EU rules on agriculture. Although the GOT does not have a legal framework on genetically engineered products, the Tunisian attitude reflects closely the predominant view within Europe. Until a law is in place, imports of genetically engineered commodities will continue to be handled in a manner similar to products of conventional agriculture. Tunisian olive oil and date exports possess organic certification from the EU. Tunisian exporters can also gain approval for the sale of their products as “organic” in the U.S. market through local USDA accredited certifiers.
In 2015, the food processing sector accounted for over 1,000 enterprises employing 10 people or more, 20% of them producing solely for export. The production value of this sector is around $5 billion annually and is continuously growing due to improved household purchasing power and changes in eating habits towards consumption of processed products versus fresh ones. The food processing sector’s demand for imported high-value ingredients is steadily increasing, with more sophisticated products licensed by multinational food companies.
Over the last decade, the modern retail sector has seen in-depth development fueled by the expansion of modern distribution outlets, supermarkets, and hypermarkets through joint ventures with foreign investors. These have mostly been with France, including the Carrefour and Casino groups (Géant and Monoprix). The hotel and restaurant industry is not perceived as a separate market from retail, as most hotels and restaurants either source their food needs through annual tenders or through the same distribution channels used by households. In addition to domestic customers, this sector caters to the many tourists visiting Tunisia each year. High-end hotels import spirits, wines, and specialty cheeses either directly or via import companies.
A significant market potential exists for a wide range of agriculture-related inputs. Tunisia possesses a sizable market for agricultural equipment, including grain silos, elevators, tractors, harvesters, irrigation systems, and food processing/bottling machinery. Because of the wide variation in recent grain harvests and the shortage of storage capacity for grains, the GOT is especially concerned with increasing the quantity of Tunisia’s grain silos. The GOT offers tax incentives of up to 50% under the 2016 Investment Law to encourage acquisition of tractors, combine harvesters, and other related equipment. The consumer-oriented products with prospects to perform best in the Tunisian market include tree nuts, dried fruits, cookies, sauces, condiments and mixed seasoning, and breakfast cereals.
Electricity access:
electrification – total population: 100% (2016)
Electricity – production:
18.39 billion kWh (2015 est.)
Electricity – consumption:
15.12 billion kWh (2015 est.)
Electricity – exports:
500 million kWh (2015 est.)
Electricity – imports:
403 million kWh (2015 est.)
Electricity – installed generating capacity:
5.028 million kW (2015 est.)
Electricity – from fossil fuels:
93.4% of total installed capacity (2015 est.)
Electricity – from nuclear fuels:
0% of total installed capacity (2015 est.)
Telephones – fixed lines:
total subscriptions: 974,975
subscriptions per 100 inhabitants: 9 (July 2016 est.)
Telephones – mobile cellular:
total: 14,282,078
subscriptions per 100 inhabitants: 125 (July 2016 est.)
Internet country code:
.tn
Internet users:
total: 5,665,242
percent of population: 50.9% (July 2016 est.)
Manufacturing
Since the 1970s Tunisia has opted for an economic model geared toward exports and industrialization, sustained by the implementation of investor-friendly legislation, as well as support public investment in infrastructure and human capital. The approach has been successful for decades, with manufacturing forming the basis of the country’s GDP growth over the last 40 years. A wide variety of subsectors has thrived, including textiles, agri-business, pharmaceuticals, and mechanical, electrical and electronic industries (MEEIs). Exports are fostered by the close proximity to European markets, a competitive logistical infrastructure, and an affordable and qualified labour force.
However, manufacturing industries have experienced a slowdown in production during the post-revolution years as a result of broader instability, more frequent labor disputes, a slowing of capital spending – technology spending in particular – and heightened international competition. This is a concern for the government, which – in a bid to reboot industrial growth while simultaneously boosting employment and export revenues – has put in place several reforms to improve Tunisia’s investment climate and encourage operators to move up the value chain.
In the post-revolution years between 2011 and 2015, the Tunisian manufacturing sector has seen a mixed performance, with a substantial decline in production by traditional industries such as phosphate and textiles offset by the expansion of technology-based segments such as automotive and aeronautics. According to the National Institute of Statistics, the manufacturing sector contributed 15.5% to GDP at market prices when measured in the second quarter of 2016. Growth in the third quarter was recorded at 1.1% and at 0.6% in the fourth quarter, with raw phosphate, the chemical industries, and MEEIs being the largest segments.
Growth is expected due to a recent spike in industrial investments as announced by the Agency for the Promotion of Industry and Innovation (APII), an entity which has served as a one-stop-shop platform for local and foreign investors since the establishment of the offshore regime. According to the APII, declared investments in the sector grew from TD2.6bn (€1.1bn) in 2015 to TD3.8bn (€1.6bn) in 2016, led by MEEIs (an increase of 111%), agri-business (71%) and chemical industries (26%). By contrast, textiles and apparel, as well as leather goods, have seen their levels of investment shrink by 40% and 62%, respectively.
As with much of the country’s secondary and tertiary economy, manufacturing is clustered in coastal areas, where 85% of wholly exporting enterprises are currently located. This has been supported in part by the ease of access to shipping and transport infrastructure – and large pools of labor – but also by the establishment of industrial zones. Industrial zones, which offer land and turnkey infrastructure for investors, were first established in the 1980s. In total, 144 industrial zones stretching over an area of 4289 ha have been set up, including 18 in the Greater Tunis area, 38 along with other coastal areas, 49 in regional development areas and the remaining zones located elsewhere. To meet growing demand, the Industrial Land Agency has plans to construct 64 new industrial zones covering approximately 1600 ha across Tunisia, including five in Greater Tunis, 14 along coastal areas and 45 in inland areas.


Banking and Finance
Tunisia’s financial system is dominated by its banking sector, with banks accounting for roughly 90% of financing in Tunisia. Overreliance on bank financing impedes faster economic growth and stronger job creation. Equity capitalization is relatively small; Tunisia’s stock market provides 6-7% of the corporate financing. Other mechanisms such as bonds and microfinance contribute marginally to the overall economy. Created in 1969, the Bourse de Tunis (Tunis stock exchange) listed 79 companies (66 in the main market, 12 in the alternative market, and one in a special group) as of December 2016. Capitalization of these companies was valued at $10.6 billion.
Most major global accounting firms are represented in Tunisia. Firms listed on the stock exchange must publish semiannual corporate reports audited by a certified public accountant. Accompanying accounting requirements exceed what many Tunisian firms can, or are willing to, undertake. GOT tax incentives attempt to encourage companies to list on the stock exchange. Newly listed companies that offer 30% capital share to the public receive a five-year tax reduction on profits. In addition, individual investors receive tax deductions for equity investment in the market. Capital gains are tax-free when held by the investor for two years.
Tunisia hosts 32 banks, of which 21 conduct both commercial and investment services. Two are Islamic universal banks, seven are offshore, and two are business banks. After the fall of the former regime, companies, banks, and real estate that belonged to ousted President Ben Ali’s family were brought under GOT receivership. Private credit stands at 65% of GDP in Tunisia. According to the World Bank, this level lags behind economic peers such as Morocco and Jordan, whose rate is 80%. In the World Bank’s 2017 Ease of Doing a Business survey, Tunisia’s raking improved in terms of ease of access to credit from 126 in 2016 to 101 in 2017.
According to the IMF Financial System Stability Assessment, the banking sector faces significant challenges such as a weak domestic economy and the legacy of the previous regime. In particular, loan quality, solvency, and profitability have deteriorated. Weak underwriting practices contributed to inappropriate lending to well-connected borrowers. Tunisia’s 25 onshore banks offer essentially identical services targeting the same segment of Tunisia’s larger corporations. Meanwhile, SMEs and individuals often have difficulty accessing bank capital due to high collateralization requirements.
Beyond the banks and stock exchange, few effective financing mechanisms are available in the Tunisian economy. A true bond market does not exist, and government debt sold to financial institutions is not re-traded on a formal, transparent secondary market. Private equity remains a niche element in the Tunisian financial system. Firms experience difficulty raising sufficient capital, sourcing their transactions, and selling their stakes in successful investments once they mature. The microfinance market remains underexploited, with non-governmental organization Enda Inter-Arabe the dominant lender in the field.
Tourism
Tourism in Tunisia is an industry that generates around 7 million arrivals per year, which makes the country among the ones that attract the most tourists in Africa. Tunisia has been an attractive destination for tourists since the beginning of the 1960s. Among Tunisia’s tourist attractions is its cosmopolitan capital city of Tunis, the ancient ruins of Carthage, the Muslim and Jewish quarters of Jerba, and coastal resorts outside Monastir. According to The New York Times, Tunisia is “known for its golden beaches, sunny weather, and affordable luxuries.”
Place of Attraction
The remnants of ancient Carthage – fabled wealthy seafaring city of the Phoenicians – lie scattered across the Bay of Tunis. The evocative tumbled columns and piles of marble rubble are bordered by a panorama of the Mediterranean Sea, which was so fundamental to the city’s prosperity. Completely destroyed in the third Punic War in 146 BC, the surviving ruins pale in comparison to some of North Africa’s other ancient sites, but this doesn’t mean you shouldn’t visit.
The world’s most renowned mosaic collection resides in this opulent palace in Tunis. Along with Cairo’s Egyptian Museum, the Bardo is one of North Africa’s two top museum experiences. Inside, room after room exhibits gloriously intricate and still vibrantly fresh examples of mosaic art that have been unearthed from sites across the entirety of Tunisia. The Sousse Room, Odysseus Room, and Dougga Room have particularly impressive exhibits of this art form, but the entire collection is a treasury and is well worth an afternoon of browsing.
The gorgeous Andalusian-style seaside neighborhood of Sidi Bou Said owes its fame to three young painters. While living here in 1914, Paul Klee, August Macke, and Louis Moilliet captured the beauty of its whitewashed buildings and blue doors on canvas. Sidi Bou Said has been something of a bohemian artists’ quarter ever since and is a favored weekend hangout spot for Tunis locals. There are no tourist attractions as such (that’s part of its charm), but you can’t fail to be beguiled by the perfect white-and-blue streets, cliffside cafés, and picture-postcard shoreline.
Chock-a-block full of crumbling buildings found by weaving your way through a procession of ever-skinnier alleyways, the medina (old town) district is Tunis’ historic heart and is brimming with sightseeing potential. The main entrance gate, marking the end of the new city and beginning of the old is known as Bab el Bahr (Sea Gate). Built in 1848, it was known as Porte de France during the colonial period.
The medina district’s great mosque is home to some of the country’s finest examples of religious architecture. Begun during the Umayyad dynasty in AD 732, it has been added to and refined by conquering empires in the centuries since. Although non-Muslims cannot enter the prayer hall, visitors are free to wander around the opulent and tranquil exterior courtyard and also to head up to the rooftop, where dazzling tile work is on display. The rooftop is also one of the best places in the medina to get panoramic photographs of the area.