Tunis – 29 & 30 November 2016

Executive summary & Projects 2020

1. Executive Summary

2 Why Tunisia?

​1.) FIRST DEMOCRACY IN THE REGION Tunisia is the hope for stability and democracy in the MENA region. It boasts a comparatively stable political and social environment (revolution is behind, unity government appointed headed by a 41 year old PM for 3 years) and security that is being managed

2.) NEW VISION FOR DEVELOPMENT The first 5-year development plan of the second republic outlines the guiding principles, key sectors and several PPP infrastructure projects that will transition Tunisia from a low-cost economy to an economic hub

3.) PRO-BUSINESS LAWS, INCENTIVES & PROTECTIONS The Tunisian parliament passed a new PPP law and a more attractive and competitive investment code that simplifies procedures and provides incentives, along with a fast track economic emergency law and more transparent arbitrage procedures

​4.) REGIONAL & INTERNATIONAL ACCESS With a potential for an $800M consumers market access in Europe, MENA and Turkey, Tunisia is a hub that enjoys preferential market access (FTAs) to all major countries in the regions and is the prime partner for Libya reconstruction and Algeria development

​5.) ABUNDANT & SKILLED LABOR FORCE Most educated country in with the 7th largest ratio of scientists and engineers in the World. An important middle class, and women that have unparalleled rights and responsibilities in the MENA region. 3 International Conference 29 & 30 November 2016 www.tunisia2020.com

Private Sector Led

 Led by the new Minister of investment, former head the largest Private Equity firm in Tunisia , 1 500 participants the conference will bring Tunisian top Industry captains, young innovators with international funds, sovereign funds, infrastructure investors, large corporations and SMEs

70 countries Political and Institutional Support

 Highest level political support (Several heads of state and heads of government have already 2 days of B2B meetings confirmed) and support of international community (US is sending a high level official delegation and so are EU countries and the International Institutions (World Bank, EBRD,..) 50 speakers Structuring Projects : Public, Private and PPP 150 personalities  More than 100 shovel ready projects to be presented for a total investment of 10 billion dollars. Public and 100 private projects Matchmaking and Handholding of investment 10 B $  A program will be tailored to each investor, and a handholding tiger team will be available for opportunities follow on visits and post conference support (these services are worth thousands of dollars)

4 Tunisia 2020

1 The New Development Plan 2016-2020

2 Public & Private Projects

Good The green governance, Transition from Human Realizing the economy, a administrative a low-cost Development ambitions of the pillar of reform and economy to an and Social regions sustainable fight against economic hub inclusion development corruption

5 Tunisia 2020

2. The New Development Plan

6 Towards a New Development Model

1 Speed up the implementation of good governance & fight against corruption

2 3 4 5 From a low-cost economy to Human development Fulfilling the ambitions of Green economy a driver of an economic hub & social inclusion the regions sustainable development

 Develop a diversified  ImproveImprove livingthe living conditions  Strengthen thethe capacities of  GuaranteeAchieve food food security security economy with high conditions thethe regionsregions and enhanceenhancing  Enhance the efficiency of  ManageFair land landmanagement use planning employment content  socialEnhance policies the efficiency of theirtheir attractiveness fairlyrespectful and respectfully of ecological of  social policies  Promote Investment &  Boost complementarity ImproveImprove livingliving conditionsconditions at ecologicalbalances balances Improve business climate thethe locallocal andand regionalregional levelslevels  betweenBoost complementarity Education System’and  OptimizeOptimise natural resources  Improve export capacities & componentsharmonisation among  Reduce disparities and management further integration into the components of the interconnectinterconnecting the theregions regions  Strengthen the spirit of  Protect the environment education system and world economy citizenship among youth  ImplementImplement thethe principleprinciple ofof inculcate the spirit of  Use cleanclean productionproduction andand  Promote digital economy as positive discrimination citizenship in youth consumptionconsumption methods a vector of development  ImproveImprove andand adaptadapt thethe  Mitigate the risks of natural regionalregional developmentdevelopment andand technologicaltechnological disastersdisasters fundingfunding system  BuildEstablish the theframework foundations of of decentralizationdecentralisation

7 Recent Reforms

 Establish a modern banking system  Diversify financial resources to develop  Boost confidence in the banking system Public-Private infrastructure and boost investment Banking Law Partnership  Preserve financial stability and protect (PPP)  Enhance the private sector’s role in the against financial and economic crises economy

 Regulate market concentration  Introduce a modern tax system  Challenge monopolistic practices Tax System  Introduce new tax incentives Competition Law  Regulate price and advertising display  Reduce public debt  Establish the competition authority

 Enhance sustainability   Reinforce Anti-Terrorism measures Renewable Attract private investors Anti-Terrorism  Energy  Allow exportation of renewable energy Restore investor and consumer confidence  Organize a national plan for electricity generated by renewable sources

8 Upcoming Reforms

A New Vision For Economic and Social Development

Consolidate Promote Financial Reform Public Institutions Improve Business Climate Macroeconomic Stability Intermediation

Fiscal Policy Civil Service Reform Banking Law New Investment Code  Prioritize capital  Improve public service efficiency  Establish a modern  Improve business spending  Introduce a Special status for banking system environment  Reduce public debt Senior Public Servants  Strengthen the banking  Reduce barriers to entry  Act against corruption system resilience  Protect investors rights Monetary Policy  Contain the wage bill  Simplify taxes and business  Contain inflation Energy Subsidy Reform Central Bank of Tunisia formalities  Strengthen the social safety net Plan Exchange Rate Policy  Introduce internal risk Labor Market Reforms  Withstand important State-Owned-Enterprises (SOEs) rating system  Build a national employment shocks Reform strategy  Improve governance Financial inclusion  Reform vocational training  Strengthen public financial  Strengthen financing or management and transparency microfinancing for SMEs Other reforms  Boost revenues  Develop private credit  Remove long-standing  Reduce fiscal risks bureaus structural obstacles to private  Revise the law on sector development excessive lending rates 9 Tunisia 2020

3. The New Investment Code

10 New Investment Code Outlines

A New Code to Foster Investment

Encouraging Investment Mechanism Market Access Guarantees and Obligations and Structure

Investment incentives  Remove structural obstacles  Facilitate dividend repatriation  Specific aids (60% granted at 40% of investment cost and the rest upon completion)  Reduce the specification note  Indicate refusal reasons  revision Tax exemption (up to 10 years)  Needed external infrastructure  Property Law  Shorten authorization delays built and financed by the State Public Structures  Arbitrage procedures  Higher Council of Investment  Ability to recruit an increasing number of executive staff  Tunisian Authority of Investment  Tunisian Investment Fund

11 Five Important Points of the New Code

 From 75 to 25 articles  Single privileged interlocutor: Tunisian Investment Authority  End of authorizations: gradual program  From 33 to 3 implementing decrees  Fast Track for all important projects  Open recruitment of foreign competencies  Immediate implementation: finalized  Deadlines set for every process decrees   Traceability: tracking for every administrative file Access to real estate for investment

To accelerate processes

 Guarantees respecting international To simplify To open-up  A tax framework more competitive than standards the law opportunities other countries  Dispute resolution : conciliation and  Incentive system based on national arbitrage New priorities: employment, value addition,  Intellectual property protection Investment regional development, sustainable Code development To offer more To introduce guarantees tax incentives

12 Figures about the Investment Code

1 Tax exemption up to 10 years, 10% tax on exports

2 Open recruitment of foreign competencies, up to 30% of executives

3 Financial incentives up to 50% of the invested amount

4 Full coverage of social and employer costs for some investments

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4. Macroeconomic Overview

14 Macroeconomic Overview

2010 2011 2012 2013 2014 2015 2016 GDP Growth % 3.0 -1.9 3.9 2.4 2.3 0.8 1.5 Investment (MD) 15 502 14 096 15 824 16 465 16 608 16 622 17 791 Investment Rate 24.6 21.9 22.5 21.9 20.6 19.4 19.5 (% GDP) Fiscal Deficit (% GDP) 1.0 3.3 5.5 6.9 5.0 4.8 3.9 Inflation (%) 4.4 3.6 5.1 5.8 4.9 4.9 3.7 Public Debt (MD) 25 639 28 779 31 418 34 986 41 054 46 923 50 354 Public Debt (% GDP) 40.7 44.6 44.7 46.6 50.8 54.9 53.4

15 Tunisia 2020

5. Public & Private Projects

16 Public & Private Investment

The green economy, Good governance, Transition from a low- Realizing the Human Development a pillar of administrative reform and cost economy to an ambitions of the and Social Inclusion sustainable fight against corruption economic hub regions development

Infrastructure and Transportation Energy and sustainable development Global Inclusion

State and State-Owned Entreprises’ Total Investment Private Sector Projects Projects sought by 2020: $60bn 60% 40%

17 Infrastructure and Transportation Projects

5 PROJECT TYPE PROJECT NAME COST($M) 14 8 11 Deep Water Port, 1 1000 Port Construction / Revamping First phase 13 10 2 , and 550 a1 Highway 4 Logistic Zone Projects 1 3 Tunis--Sidi Bouzid-Kasserine- 500 Gafsa A1 Highway 12 4 Le Kef A3 Highway 320 3 Industrial Area Projects 7 5 Metro Project 270 Sfax 5 6 Bridge Project 250 Bridge Project 2 Total 7 -Kasserine Railway Line 170 Investment Metro Project 8 Rades Deep Water Port 140 Terminal Extension $4bn 9 15 9 Logistic Zone 140 Planned Railway 10 Zaghouan Logistic Zone 140

11 Old Highway - Railway Line 140

12 Tunis-Kasserine Railway Line 120

New Highway 13 Jandouba-Bousalem 120 A3 Highway

14 Radès Logistic Zone 100 New Express Roads 15 Gabès-Medenine Railway Line 100

Future Highway

18 Energy and Sustainable Development Projects

1 PROJECT TYPE PROJECT NAME COST($M) 7 Tunis 3 Tunisia-Italy electricity 1 680 Steam Combined Cycle Plant Interconnection

2 Sekhira Steam Combined Cycle Plant Combined Cycle Power Plant 310

1 3 Combined Cycle Plant 310 Technical Acid Production Plant 2 Sfax Seawater Desalination Plant Sfax 4 300 Wind Power Plant 4 9 5 5 Nafta- Phosphate 170 Field Total Solar Power Plant 8 Investment 10 6 6 Ktef Wind Power Plant 120 $2.4bn

Seawater Desalination Plant 7 Menzel Abderrahman Wind Power Plant120

Phosphate Field 8 Tbaga Wind Power Plant 110

Power Interconnection Project 9 Gabès Desalination Plant 100

Oil Pipe Line Project 9 Gabès Technical Acid Production 90 Plant

Green Economy Program 10 Solar Power Plants 70 (Sanitation and Sewage)

19 Global Inclusion Projects

HEALTH 1 80 HOUSING 2 80 $M 8 $M CHILD CANCER 320 60 HOSPITAL IN 1 2 3 TREATMENT 3 $M $M CENTER IN INTEGRATED 300$ REGIONAL TUNIS 90 9 360 MULTISERVICE 75 5 $M $M DEVELOPMENT M HOSPITAL IN 4 $M REGIONAL PROGRAM THE 2nd 10 BEJA REGIONAL MULTISERVICES 6 NEIGHBORHOOD PROGRAM OF MULTISERVICES HOSPITAL IN RENOVATION AND AFFORDABLE 4 HOSPITAL IN GABES INTEGRATION HOUSES KAIROUAN 11 13

600 12 50 8 9 $M $M BIZERTE MUNICIPAL 1140 70 6 7 ZAGHOUAN INVESTMENT $M $M DEVELOPMENT PLAN PROJECT REGIONAL Total REGIONAL OUED TESSA DEVELOPMENT 5 DISPARITIES DEVELOPMENT AGRICULTURE Investment PROGRAM PROJECT KAIROUAN DIGITAL $3.9bn TUNISIA 2020 DEVELOPMENT PROJECT 270 60 $M $M 10 11

40 90 280 12 10 $M $M $M $M EQUIPMENTS DIGITAL FOR THE OLYMPIC SCHOOL SFAX SPORTS 13 UNIVERSITY SWIMMING PROJECT CITY INSTITUTIONS TUNISIAN KASSERINE POOLS GERMAN NATIONAL UNIVERSITY OF SPORTS TUNIS 10 TRAINING 80 $M FACILITY $M

EDUCATION SPORTS

20 Tunisia 2020

www.tunisia2020.com

21 Targets & Critical Success Factors

Targets, Strategy Success Factors

Targets  Begin to change the narrative on TUN (good image in DC but not in economic circles- meet people and build  SMES in priority sectors trust)- tourism and investment come as a consequence  High profile investors or CEOs (2 or 3)  Friends of Tunisia throughout the US (121, ACYPL, ..)  Enable one on one JVs between US SMEs and TUN  Diaspora- relay companies funded organically or by donors/investors

Reach out approach  Gain further US Political support- textile exports tariff reduction, FTA talks- Obama post Nov 8 signature),  Feature the conference in the website of key nationwide MCC industrial zones (highly secured SEZs with one trade, investment and commerce organizations stop shops. Change the MCC threshold slightly to  International Trade Association capture 2 or 3 countries including Tunisia instead of  World Trade Centers doing an exception), lift travel warning (France and  US chamber chapters others have done,families are allowed back in US  Emerging Markets PE association embassy), connect poles of innovations

 Small targeted media campaign  Post conference follow up - economic advocacy, tiger  Atlantic Council article and conference team in Tunis to do the handholding)

22 Local delivery & focus on US clusters that match Tunisia’s focus sectors

Hedi Larbi Cailtin Copple Chicago Jake Braun Jean Abinader Boise Wisconsin / Iowa / Illinois Ikbel Achour Boston Bill Gregory Sawmills Minneapolis Mutual FundsHamouda Chekir Kathy Bailey Agricultural Equipment West Michigan Western Massachusetts Farm Machinery Cardio-vascular Holly Chisa Office and Institutional Polymers Medical Devices Omaha Equipment Furniture Mgmt. Consulting Seattle Telemarketing and Services Rochester Biotechnology Aircraft Equipment and Design Hotel Reservations Imaging Equipment Software and Boat and Ship Building Michigan Credit Card Processing Clocks Networking Metal Fabrication Warsaw, Indiana Fay Bedoun Orthopedic Devices Detroit Venture Capital Auto Equipment Hartford Oregon and Parts Insurance Electrical Measuring ProvidenceBo Cutter Equipment Jewelry Karim Babay Woodworking Equipment Marine EquipmentSami Robbana Logging / Lumber Supplies New York City Lotfi Karoui Financial Services Badis B Hamida Silicon Valley Advertising Aicha Zakraoui Sami BR Microelectronics Publishing Walid M. Biotechnology Multimedia Washington DC Lamia M. Venture Capital Pennsylvania / New Jersey Houssem A. Pharmaceuticals Gil Crawford Jay Footlik Las Vegas Pittsburgh Shelly Porges Amusement / Advanced Materials Casinos Energy Jill Bader/ Suzanne Swink Small Airlines Steve Koltai North Carolina Kris Balderston Firas Ben Achour Household Furniture Los Angeles AreaSuzan Baaj Samia Msadek Amina Laouani Synthetic Fibers Defense AerospaceMondher B Hamida Marouen Abbassi Hosiery Entertainment Dhia Wichita Atlanta Carlsbad Light Aircraft Cleveland / Louisville Golf Equipment Hatem Sellami Paints & Coatings Farm Equipment Baton Rouge / Amanda Reeve Phoenix New Orleans Dalton, Georgia Anis Atallah Helicopters Dallas Specialty Foods Carpets SemiconductorsJacob Candelaria Real Estate Southeast Texas / Electronic Testing Labs Development Nashville / Louisville Louisiana Colorado Hospital Management Chemicals South Florida Computer Integrated Systems / Programming Health Technology Engineering Services Anis Mnif Aida Araissi Computers Mining / Oil and Gas Exploration Houston Hatem Goucha 23 Jason Isaac/ Ben Stratman