2023-06-24 10:06:59
Examination of the evolution of the partial perception indicators between 2020 and 2022 shows that of the 12 sections used in the calculation of the Ipca, 10 showed a decline.
The Tunisian Institute for Competitiveness and Quantitative Studies (Itceq) has just published the results of the 22nd survey on the business climate as well as Tunisia’s position in international relations. This survey took place during the period between June 17 and July 22, 2022. And it covered a sample of 1,041 private, structured companies (employing 6 or more employees), operating in industry and in the services and distributed throughout the Tunisian territory.
According to the overall results, this work shows that, according to business leaders, the business environment is becoming increasingly gloomy. Thus, the perception of businessmen shows that the barometer of the business climate has widened further in 2022, with a drop of 3.4 points compared to 2021, following the decline observed in 2019, after a marked improvement recorded in 2018.
According to Itceq, for the second successive time since its calculation (in 2007), the business barometer (Ipca) is below 50/100, with a score of 45.2/100, attesting to a more gloomy ecosystem and business environment in general.
10 out of 12 shutters show a decline
Examination of the evolution of the partial perception indicators between 2020 and 2022 shows that of the 12 sections used in the calculation of the Ipca, 10 showed a decline. The greatest decreases are noted at the level of the judicial system (10.9 points), bank financing (6.4 points), human resources (6.2 points) and practices in the market (4.9 points).
Also, with perception indicators well below average, corruption (31.4/100), followed by the political climate (31.8/100), bank financing (32.2/100) and the social climate (32.8/100) are positioned as the main obstacles for business development in 2022.
According to the Tunisian Institute of Competitiveness and Quantitative Studies, “this result is not specific to this year, but dates back to 2018, the year from which these areas constitute the four main constraints of the business climate”.
Still according to the results of the survey, during the year 2018, only “the political climate” recorded a score lower than 50/100. In 2019, “corruption” is added, then in 2020, the below-average scores drop to six with the entry of four other areas: “the social climate”, “bank financing”, “practices in the market” and “the macro-economic and legal framework”.
Last year, a batch of three areas joined the first group with the entry of “taxation and social charges”, “the judicial system” and “administrative procedures”. With these 9 areas the least well perceived by respondents, three quarters of the areas covered by the survey are poorly judged.
On the side of good performance is the “security situation” which, according to businessmen, is improving further. Indeed, “the security situation has gone from the 3rd constraint in 2015, to the 10th in 2022. This reflects the recognition of the effort made by the security system to restore security in the country. ‘Infrastructure’ and ‘Human Resources’ maintain their positions as the best perceived areas. These two areas continue to stand out as business climate strengths and have maintained their ranking as the best perceived.”
Priorities to improve the environment for entrepreneurship
According to the results of this 22nd survey on the business climate in Tunisia, the challenges to be met to improve the environment for entrepreneurship are major.
To deal with the multiple obstacles to investment, it is necessary to fight against the scourge of corruption by strengthening the digitization of administrative services, reducing bureaucracy and reducing direct contact between the user and the public official. But this digitization must be accompanied by institutional reforms to strengthen transparency and interoperability, promote accountability and consolidate the dissuasive policy.
In terms of the political climate, stability associated with a binding long-term vision is desirable. In addition, the continuity of legal texts and their predictability are essential to guarantee the confidence of companies in their legislative and regulatory system. Also, the continuation of the simplification of administrative procedures and the promotion of public-private dialogue to understand the needs of business leaders must be in order.
Bank financing of businesses, especially small and medium-sized ones, is a vital issue. It is essential to persevere with financial reforms capable of reducing credit rationing, in particular through the development of the activity of private credit bureaus, the reform of the guarantee system, and the promotion of alternative methods of financing, like private equity and crowdfunding.
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