Country Overview
Tunisia has implemented processes that encourage the creation of businesses, promoting competition and investment. Despite having a reasonably stable financial sector, the impact of the COVID-19 pandemic may present a challenge to obtaining finance for infrastructure investments. To encourage investment in infrastructure projects and provide security for investors, Tunisia could improve the liquidity of its financial market and boost GDP growth to secure funding for future projects.
See Full Overview Data
GDP per capita
3,287 USD
Population
11.8 million persons
Infrastructure quality
62.7 (0-100 best)
Infrastructure investment
3.7% of GDP
Infrastructure gap
1.4% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

30
1
59.2
Top performer
58
7
52.5
Aspiring
39
1
71.3
Contender
43
3
71.4
Contender
57
37
63.0
Aspiring
39
3
34.9
Contender
69
19
19.8
Emerging
40
2
32.5
Contender

Metric Overview

Strengths

Cost to start a business

According to the World Bank, the cost to start a business in Tunisia is 2.9% of income per capita, the second lowest for Lower Middle Income Countries. A review of processes resulted in a reduction of fees to start a business, easing the entry of new firms.

Time required to start a business

According to the World Bank, the time required to start a business in Tunisia is nine days, which is less than Lower Middle Income Countries average of 20.4 days. Shorter times to set up businesses can persuade businesses to set up in a country, including new infrastructure entities.

Financial stability

Tunisia’s financial stability is satisfactory, however it is the lowest ranked among Lower Middle Income Countries. A stable financial system facilitates the smooth flow of funds between infrastructure and investors, improving capital supply for projects.

Cost to start a business

According to the World Bank, the cost to start a business in Tunisia is 2.9% of income per capita, the second lowest for Lower Middle Income Countries. A review of processes resulted in a reduction of fees to start a business, easing the entry of new firms.

Time required to start a business

According to the World Bank, the time required to start a business in Tunisia is nine days, which is less than Lower Middle Income Countries average of 20.4 days. Shorter times to set up businesses can persuade businesses to set up in a country, including new infrastructure entities.

Financial stability

Tunisia’s financial stability is satisfactory, however it is the lowest ranked among Lower Middle Income Countries. A stable financial system facilitates the smooth flow of funds between infrastructure and investors, improving capital supply for projects.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Lower middle income country average

Financial markets:
Financial stability

Opportunities to Grow

Market sounding and/or assessment

Tunisia currently lacks a market sounding process for infrastructure projects. Adding such a process could allow the government to better determine if there is interest from investors and lenders to provide commercial financing for projects.

Stocks traded

Tunisia traded stocks worth approximately 2.2% of GDP in 2019, scoring it below the Lower Middle Income Countries average of 15.5%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Long term GDP growth trend

Tunisia’s long-term GDP growth is 2.1%, the lowest value compared to other Lower Middle Income Countries where the average is 4.9%. Combined with the uncertain impact of the COVID-19 pandemic, this low growth trend may hamper Tunisia’s ability to borrow and build more infrastructure.

Market sounding and/or assessment

Tunisia currently lacks a market sounding process for infrastructure projects. Adding such a process could allow the government to better determine if there is interest from investors and lenders to provide commercial financing for projects.

Stocks traded

Tunisia traded stocks worth approximately 2.2% of GDP in 2019, scoring it below the Lower Middle Income Countries average of 15.5%. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Long term GDP growth trend

Tunisia’s long-term GDP growth is 2.1%, the lowest value compared to other Lower Middle Income Countries where the average is 4.9%. Combined with the uncertain impact of the COVID-19 pandemic, this low growth trend may hamper Tunisia’s ability to borrow and build more infrastructure.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Lower middle income country average

Financial markets:
Stocks traded

Funding capacity:
Long term GDP growth trend

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Tunisia

Lower middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

51.3 (-0.7)
31.4

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

50.8 (+0.8)
41.5

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

43.3 (+3.3)
34.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

35.0 (+4.0)
38.7

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Tunisia

Lower middle Income Countries Average

51.3 (-0.7)
31.4
50.8 (+0.8)
41.5
Yes
-
43.3 (+3.3)
34.2
35.0 (+4.0)
38.7
Yes
-

Country Overview Data

Tunisia has implemented processes that encourage the creation of businesses, promoting competition and investment. Despite having a reasonably stable financial sector, the impact of the COVID-19 pandemic may present a challenge to obtaining finance for infrastructure investments. To encourage investment in infrastructure projects and provide security for investors, Tunisia could improve the liquidity of its financial market and boost GDP growth to secure funding for future projects.
GDP per capita

3,287 USD

Population

11.8 million persons

Infrastructure quality

62.7 (0-100 best)

Infrastructure investment

3.7% of GDP

Infrastructure gap

1.4% of GDP

GDP

38.7 USD billion

GDP growth rate

1.5%

GDP per capita growth rate

-3.9%

Gini coefficient

32.8 (0-100 worst)

Gross Government Debt

74.0% of GDP

Inflation rate

6.6%

Summary credit rating

31.0 (0-100 best)

Unemployment rate

15.5%

Urbanisation ratio

69.0% of total population

Road connectivity

82.7 (0-100 best)

Quality of road infrastructure

3.6 (1-7 best)

Efficiency of train services

3.2 (1-7 best)

Efficiency of air transport services

3.6 (1-7 best)

Efficiency of seaport services

3.4 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

15.5% of output lost

Exposure to unsafe drinking water

20.2% of population

Reliability of water supply

4.9 (1-7 best)

Digital Adoption Index

0.6 (0-1 best)

Mobile-broadband subscriptions

76.1 per 100 population

Fixed-broadband Internet subscriptions

8.8 per 100 population