UTICA President Calls for Foreign Currency Financing to Boost Tunisian Companies Abroad

UTICA Advocates for Internationalization Support

Samir Majoul, President of the Tunisian Confederation of Industry, Trade, and Handicrafts (UTICA), recently urged the establishment of a foreign currency financing line. This initiative aims to bolster the internationalization efforts of Tunisian companies and enhance their presence in global markets. The call was made during a meeting with a delegation from the World Bank, held at UTICA's headquarters.

Review of Existing World Bank Support

The discussions between Majoul and the World Bank delegation also encompassed a review of the benefits derived by Tunisian companies from a $120 million financing line granted by the World Bank in 2023. This previous financing was allocated to the project titled 'Support for Small and Medium Enterprises to Revive the Economy.' The meeting focused on assessing the project's effectiveness and maximizing its contributions to the national economy.

Addressing SME Challenges and Economic Adaptation

Beyond the immediate financing request, the parties delved into a range of critical economic issues. Key topics included the challenges confronting Small and Medium Enterprises (SMEs) in Tunisia, strategies to foster their innovation capacity, and the imperative to keep pace with technological advancements. Discussions also covered the importance of financing and investment promotion to ensure the continuity and growth of these vital businesses within the Tunisian economic framework.

Furthermore, the meeting addressed the capacity of Tunisian firms to adapt to the implementation of a carbon tax and their preparedness for the requirements of the African Continental Free Trade Area (AfCFTA). UTICA representatives reaffirmed Tunisia's commitment to a low-carbon economy, continued investment in the green economy, and achieving energy sovereignty. Concerns were also raised that new restrictions on Tunisian exports could potentially harm the economic fabric and diminish the competitiveness of domestic companies.

Strengthening Partnership for Sustainable Recovery

The meeting underscored the significance of strengthening the partnership between UTICA and the World Bank. This collaboration is deemed crucial for supporting SMEs and developing effective strategies for sustainable economic recovery in Tunisia. UTICA, established in 1947, represents approximately 150,000 private companies, predominantly SMEs, across various non-agricultural sectors in Tunisia, playing a pivotal role in the country's economic development. The World Bank has a long-standing commitment to Tunisia, with a new five-year Country Partnership Framework (CPF) announced in June 2023, allocating around $400-$500 million annually to enhance private sector resilience and foster job creation.