Tunisia country profile

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Located on the coast of North Africa, almost half of Tunisia's border is with the Mediterranean.

It has a 1,148-kilometre coastline to the north and east, and borders Algeria to the west (965 kilometres) and Libya to the southeast (459 kilometres). Major settlements are concentrated on the coastline, while the interior features mountains in the north, hot, dry plains in the centre and a semi-arid southern region bordering the Sahara Desert.

Since it gained independence from France in 1956, Tunisia has had only two presidents. President Zine al-Abidine Ben Ali has been in power since he took over from Habib Bourguiba in a bloodless coup 7 November 1987. Bourguiba had been president for 30 years, and Ben Ali said that never again would there be a president for life. But the constitution has twice been changed during his tenure to allow him to remain in power, and there is speculation that he will stand for a further term at the next elections in 2009.

Ben Ali has presided over economic and political reforms, including the legalisation of opposition parties and the allocation of 20 per cent of parliamentary seats to them. But the ruling party keeps a tight control over both political opponents and the media, leading international human rights groups to protest at the government's restriction of basic civil freedoms.

Table: Tunisia at a glance

Government

Tunisia is a presidential republic with a bicameral parliamentary legislature. The president is elected by popular vote for a five-year term. Members are elected to the 189-member Chamber of Deputies (lower house) from single-seat constituencies for a five-year term, with 80 per cent of the seats allocated to the ruling party and 20 per cent to the opposition. The 126-member Chamber of Councillors (upper house) has 126 members, 85 of them indirectly elected by members of the Chamber of Deputies and city council members and 41 appointed by the president.

The political system is dominated by the Democratic Constitutional Rally (RCD), of which President Ben Ali is the leader and which was the country's only legal party for a period of 25 years. There are now six opposition parties, but they are not considered to have any chance of governing.

Last presidential election: 24 October 2004
Next election: 2009

Results of last presidential election (turnout 91.5 %):

• Zine El-Abidine Ben Ali,  Democratic Constitutional Rally (RCD),  4,202,292 votes,  94.5%

• Mohamed Bouchiha, Party of People's Unity (PUP), 167,986 votes, 3.8%

• Mohamed Ali Halouani, Renewal Movement Ettajdid (MRE),  42,213  votes, 1.0%

• Mohamed Mouni Beji, Social Liberal Party (PSLl), 35,067 votes, 0.8%

Last elections to the National People's Assembly: 17 May 2007
Next elections: 2012

Results of last elections:

• National Liberation Front (FLN),  23%,  136 seats

• National Rally for Democracy (RND), 10.3%,  61 seats

• Movement for National Reform (MSP), 9.6%,  52 seats

• Workers' Party (PT), 5.1%,  26 seats

• Rally for Culture & Democracy (RCD), 3.4%,  19 seats

• National Front (FNA),   4.2%,  13 seats

• Independents,    9.8%,  33 seats

• Other     34.6%,  49 seats

Last elections to the Chamber of Deputies: 24 October 2004
Next elections: 2009

Results of last elections (turnout 91.5 per cent):

• Democratic Constitutional Rally (RCD), 3,678,645 votes,  87.7%,  152 seats

• Movement of Socialist Democrats (MDS), 194,829 votes,   4.6%,  14 seats

• Party of People's Unity (PUP), 152,987 votes, 3.6%, 11 seats

• Unionist Democratic Union (UDU), 92,708 votes, 2.2%, 7 seats

• Movement Ettajdid (ME), 43,268 votes, 1.0%, 3 seats

• Social Liberal Party (PSL), 25,261 votes, 0.6%, 2 seats

Government officials

• President: Zine el-Abidine Ben Ali

• Prime Minister: Mohamed Ghannouchi

• Special Adviser to the President & Spokesman of the Republic: Abdelaziz Ben Dhia

• Minister of Agriculture & Water Resources: Habib Haddad

• Minister of Communication Technologies: Haj Klai

• Minister of Communications & Relations with the Chamber of Deputies & the Chamber of Counsellors: Rafaa Dekhil

• Minister of Culture & Protection of National Heritage: Mohamed Aziz Ben Achour

• Minister of Development & International Cooperation: Mohamed Nouri Jouini

• Minister of Education & Vocational Training: Sadok Korbi

• Minister of Employment & Vocational Integration of Youth: Chadli Laroussi

• Minister of Environment & Sustainable Development: Nadhir Hamada

• Minister of Equipment, Housing & Land Development: Samira Khayache Belhaj

• Minister of Finance: Mohamed Rachid Kechiche

• Minister of Foreign Affairs: Abdelwaheb Abdallah

• Minister of Higher Education & Scientific Research: Lazhar Bououni

• Minister of Industry, Energy & Small- & Medium-Size Enterprises: Afif Chelbi

• Minister of the Interior & Local Development: Rafiq Belhaj Kacem

• Minister of Justice & Human Rights: Bechir Tekkari

• Minister of National Defence: Kamel Morjane

• Minister of Public Health: Mondher Zenaidi

• Minister of Public Property & Real Estate Affairs: Ridha Grira

• Minister of Religious Affairs: Boubaker El-Akhzouri

• Minister of Scientific Research, Technology & Expertise Development: Taieb Hadhri

• Minister of Social Affairs, Solidarity & Tunisians Living Abroad: Ali Chaouch

• Minister of Tourism: Khelil Lajimi

• Minister of Trade & Handicrafts: Ridha Touiti

• Minister of Transport: Abderrahim Zouari

• Minister of Women, Children & Family Affairs: Sarra Kanoun Jarraya

• Minister of Youth, Sport & Physical Education: Abdallah Kaabi

• Minister-Director of the Presidential Cabinet: Ahmed Eyadh Ouederni

• Secretary General of the Government: Mounir Jaidane

• Governor, Central Bank: Taoufik Baccar

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Economy

For most of its recent history, Tunisia has been self-sufficient in terms of hydrocarbons, but since the turn of the new millennium the country's dwindling oil resources have led to a growing energy supply deficit. As a result, the economy has been vulnerable to the costs of associated with rising oil prices. At the end of 2006, Tunisia had a trade deficit of almost $5 billion, a current account deficit of $540 million and external debt of more than $20 billion.

Nevertheless, real growth in GDP in 2006 was almost 6 per cent, and the medium term economic outlook is good. The government aims to increase annual economic growth to more than 6 per cent during the next decade, compared to 5 per cent over the last 10 years. One of the economy's most pressing problems, as with many of its neighbours, is finding employment for its growing population. The official jobless rate in late 2007 was 14.3 per cent, and every year there are almost 90,000 new entrants to the job market.

Steady economic growth, political stability and an improved business environment are increasing international interest in the country, particularly in the Gulf. But poorly developed banking and markets still hinder foreign direct investment. According to the World Economic Forum's Global Competitiveness Report, 2006-07, Tunisia has the most competitive economy in the Middle East and Africa, but is held back by limited foreign access to private property and public debt.

The country's financial sector is currently characterised by a proliferation of small, relatively weak state banks and a thin stock exchange. But Tunis wants financial markets to contribute 20 per cent of the national economy by 2009, and efforts are being made to improve the situation.

Two state banks have ceded a portion of their capital to overseas interests. Societe Generale bought a majority share in Union Internationale des Banques in 2002 and Banque du Sud sold 33.5 per cent of its shares to a consortium of international banks in late 2005. In both cases, the international partners have management control of the local banks and have committed to reduce the proportion of non-performing loans.

A small-cap stock market is also set to be launched by the end of 2007 in an attempt to increase investment and stimulate the economy. The market will cater for the vast number of small companies that make up a large proportion of the local economy.

Table: Economic indicators

($ million, unless stated) 

Sectors

Oil & gas

As an oil province, Tunisia is on the wane. Estimated oil reserves fell to 305 million barrels in early 2006 from 310 million barrels in 2004 and oil production dropped to 24.4 million barrels in 2006 compared to 25.5 million barrels a year before. This is little more than half of the country's peak output of 120,000 barrels a day (b/d) between 1982-84. But as oil output has fallen, gas production has increased. Until the 1990s, Tunisia had no gas production, but by early 2006 the country had proven gas reserves of about 2.75 trillion cubic feet. Production rose to 2,600 million cubic metres in 2005 from 2,400 million cubic metres in 2004. More than 30 international oil companies are now operating in the country.

The largest foreign investor is the UK's BG, whose consortium with state oil company Etap is responsible for the development of the country's largest gas field, Miskar in the Gulf of Gabes. In 2005, the Miskar field was producing 200 million cubic feet a day of natural gas, alone supplying more than half of the country's natural gas demand.

The $800 million development of a second major discovery, the Hasdrubal gas/condensate field in the Gulf of Gabes, is also being carried out by BG and Etap. Due to come on stream in 2009, it has reserves of 75 million barrels of oil equivalent. As gas production increases in the medium term, Tunis is exploring the possibility of exporting some gas through the Transmed pipeline, which links Algeria and Italy via Tunisia.

Further downstream, Qatar Petroleum International (QPI) has signed a memorandum of understanding to build, own and operate a refinery at La Skhira with capacity of 6 million-8 million tonnes a year. QPI is carrying out feasibility studies before making a final decision on whether to proceed with the project. If the refinery goes ahead, about 20 per cent of its output will be sold on the domestic market, with the balance to be exported. Tunis also plans to upgrade the country's only existing refinery, a 35,000-b/d facility at Bizerte that supplies about 40 per cent of domestic demand. The upgrade would increase capacity by 25 per cent.

State chemicals company Groupement Chimique Tunisienne is looking into developing a sulphuric acid and phosphoric acid plant at La Skhira, and studies are being carried out into the development of the country's first world scale ammonia plant.

Power & water

Three major developments are planned in the power sector. The tender process is under way for a 400-MW combined-cycle power plant at Ghannouch, near Gabes on the east coast, and a second 400-MW facility is planned for Bizerte in the northeast. Both will be on stream by 2012. Plans are being drawn by Tunis and Rome up for a 1,200-MW plant at El-Haouaria, which would export 800 MW of power by subsea cable to the Italian mainland. The country is beginning to develop its alternative power potential, with three wind-farms planned at Bizerte with combined capacity of 100-120 MW. The bidding process is also under way for a 50,000 cubic-metre-a-day reverse osmosis desalination plant on the island of Djerba.

Construction & transport

Substantial investment is being made to modernise the country's transport infrastructure. An estimated $4 billion programme has been drawn up to extend the Tunis light rail system, build a new express rail network, revamp the bus network and develop multi-nodal stations catering to all forms of public transport. The scheme will include five new express lines that will increase the network's total length from 32 kilometres to 60 kilometres. A motorway upgrade programme is also in progress.

In May 2007, Turkey's Tepe Akfen Ventures won the contract to redevelop Monastir airport and build a new airport at Enfidha, and state-owned Office de la Marine Marchande & des Ports is planning to expand passenger and container capacity at the country's ports. The programme includes new concession agreements to build a container port at Tunis-Rades, a new cruise terminal at La Goulette in Tunis, and a greenfield deepwater port at Enfidha. The new port development, which will have eventual capacity of 6-8 million twenty-foot equivalent units, is expected to cost up to $2 billion.

The trickle-down from the Dubai property boom is fuelling a growth in real estate investment in Tunisia. Dubai Holding's property subsidiary Sama Dubai is set to invest $14 billion on a luxury, 837-hectare development north of Tunis; Aldar Properties and Sorouh Real Estate plan to spend up to $11 billion on the redevelopment of another Tunis suburb; and Emaar has proposed to spend about $2 billion to build the Marina al-Qussor mixed-use residential and tourist resort on the east coast.