Tunisia Eyes Economic Boost as 16 Key Reform Laws Move Toward Approval
The Arab Institute of Business Leaders (IACE) urged Tunisia to pass, by the end of 2026, at least three priority economic reform texts out of 16 major structural reforms currently underway. It also recommended creating a steering unit attached to the Prime Ministry, with a binding timeline for implementation milestones.
In a note titled "Mapping the Main Economic Codes Awaiting Reform in Tunisia," the IACE warned that Tunisia is already paying the price of legislative delay through weaker growth and lower investment. The institute said 2026 offers a window of opportunity that would be costly to miss.
Three priority reforms
Among the three priority reforms, the IACE highlighted the Exchange Code, arguing that the 1976 framework is outdated in the face of the digital economy and modern international financial flows. Two complementary legislative initiatives are under discussion: one on regularising foreign-exchange violations through a settlement contribution of 4–15 percent and partial repatriation of undeclared assets; and another parliamentary initiative aimed at liberalising residents’ foreign-currency accounts, regulating crypto-assets, and strengthening legal guarantees for foreign direct investment repatriation.
The article also emphasises the need for a legal framework on renewable energy, which the IACE says could boost investment and strengthen Tunisia’s energy independence. Tunisia’s energy independence reportedly dropped from 93 percent in 2010 to 41 percent in 2024, while hydrocarbon production declined by 15 percent between 2021 and 2025. The absence of unified legal frameworks for renewables and hydrocarbons is presented as a direct obstacle to investment.
The IACE also pointed to the Investment Code, noting that Tunisia’s overall investment rate fell from 19.3 percent of GDP in 2016 to 16 percent in 2024. Average FDI flows also declined by 25 percent, from $974 million annually in 2014–2018 to $728 million annually in 2019–2023.
Executive bottleneck
According to the IACE, the main bottleneck is not Parliament but the executive branch. It cited unfinished interministerial arbitration, sectoral resistance to disruptive reforms, and hesitation over governance of sensitive legal texts. The institute said five priority codes — including investment, water, environment, and hydrocarbons — have already been technically finalised and approved by the Council of Ministers but have not yet been sent to the Assembly of People’s Representatives.
The IACE concluded that Tunisia’s reform process suffers from fragmented responsibilities, with 16 reform projects launched at the same time across different sectoral commissions without common coordination or a shared timeline. It said no body currently has a cross-cutting and binding mandate over economic legislative reforms, preventing a coherent prioritisation of resources and an integrated reform agenda.