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	Tunisia		Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   THE ECONOMY   INVESTMENT ISSUES   PROJECTS   PROSPECTS

Investment Issues Privatization Tunisia has launched a program to privatize non-strategic state-owned companies, particularly companies operating in competitive sectors. In addition to the privatization measures described above, Tunisia recently launched international tenders to sell assets in two state-owned textile firms and a state-controlled mineral water firm. Furthermore, Tunisia has launched an international tender to sell part of the state-owned Sahara Palace Hotel. Among the companies that were undergoing full or partial privatization in 1995 and 1996 are TunisAir, the ferry company, CTN, and the Coca Cola and beer bottler, SBFT. Stock Exchange The Tunis Stock Exchange was established in 1969, and as of 1995, had over twenty companies listed with a total market capitalization of $2.5 billion. Tunisian companies on the stock exchange are required to publish semi-annual corporate reports audited by a certified public accountant. Due to a decree issued in 1995, it is easier today for foreigners to purchase shares in Tunisian companies. Foreigners can buy up to 10 percent of a company's shares on the Tunis Stock Exchange and up to 30 percent of a private company without central bank approval. The Tunisian stock exchange is also playing a role in the country's search for development capital, though up until now foreign interest has been minimal, largely because of small trading volumes and related fears of insider manipulation. Still, news that the well respected chief executive of the Banque de Developement Economique de Tunisie, Tijani Chelli, has now been appointed the stock exchange's chief could encourage wider local activity and, in the longer run, lead to greater foreign involvement. Foreign & Colonial Emerging Markets, for example, is now considering greater involvement there. Price Controls and Competition Policy Until the mid-1980s, Tunisia maintained stringent price controls. In conjunction with trade liberalization policies in the 1980s, domestic price controls were liberalized in 1986. The Competition Law, enacted in 1991, declared free competition with regard to prices as the primary rule for the domestic market, with some exceptions for goods and services deemed to be necessities, such as food, public utilities, petrol, and medicines. Sectors where free market prices do not apply are subject to special rules regarding anti-competitive practices, including the abuse of dominant market positions, the violation of which are punishable by fine and imprisonment. Previous Chapter Contents Menu Next Chapter

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