Poland – Business and SEZ – Special Economic Zones

8 June 2014 Expert

Poland – Business and SEZ – Special Economic Zones

WHY ‘POLAND? OUTLOOK ON COUNTRY

Poland can offer to an entrepreneur who decides to settle in the territory of Poland, a political and economic stability, low cost of production and distribution, government incentives, and easy access to European markets.

THE SPECIAL ECONOMIC ZONES Z.E.S.

The Z.E.S. have been created in Poland as a result of the law of 20/10/94 Economic Development, published in the Official Gazette 1994, no Polish. 123 item 600.

Poland has as many as 14 Special Economic Zones SEZ to be active at least until 2026 through the appropriate legal framework. The Z.E.S. cover an area of 15,673 hectares in areas not inhabited; If an entrepreneur is setting up one of these areas, can enjoy a concessional aid and substantial public:

- Plot of land ready for investment at favorable price;
- Advice to assist the company and prepare to invest in;
- Municipal incentives and tax breaks on property taxes;
- For countries outside the EU reductions in import duty;
- Tax relief on the means of transport;
- Incentives for the hiring of staff (non-fiscal incentives);
- Incentives relating to investment procedures (non-fiscal incentives);
- Exemption from payment of income tax: it depends on the location and amount of the investment, and charges for the hiring of employees, the size of the company. The incentive varies from 30% to 50% depending on the region; in the case of small businesses there may be a further reduction of 20% with some restrictions to certain areas.

REQUIREMENTS
Investment of at least € 100,000 and investment as well as the jobs created must be maintained for at least five years (three years for SMEs).

SEE THE LOCATION OF THE AREAS Z.E.S.

Depending on the company’s Italian business sector, there are geographical areas where it is recommended for inclusion in the industrial sector due to the presence in the territory of the companies operating in this sector, therefore, for ease of retrieval of tangible and intangible resources / human with adequate professionalism and skills.

Russia EURASIAN CUSTOMS UNION

7 June 2014 Expert

RUSSIA EURASIAN CUSTOMS UNION

THE EURASIAN CUSTOMS UNION AND TRADE WITH RUSSIA

Written and translated by Lorenzo Giusepponi
January 2018

The Eurasian Customs Union

Russia is currently interested in strengthening the Customs Union with Belarus and Kazakhstan, founded in 2010. As Ukraine is increasingly out of the Russian sphere of influence, we are now observing a further political and economic integration among the Union’s member states and a widening of its membership, with the participation of two more countries: Armenia and Kyrgyzstan. The promotion of economic integration among the CIS ( Commonwealth of Independent States ) member states was first conceived in 1994, when these countries began discussing the opportunity of establishing the Eurasian Economic Community.

The acceleration of this process, however, only occurred in November 2009, when Russia, Belarus and Kazakhstan signed an agreement for the establishment of a Customs Union characterized by a common external tariff, a common customs code, the elimination of non-tariff barriers and the distribution of incomes on a proportional basis, that is 88 percent to Russia, 7 percent to Kazakhstan and 5 percent to Belarus. The Eurasian Customs Union came officially into existence on 1 January 2010. Two years later, the three countries established the Eurasian Economic Space, a single market for the free movement of goods, services, capital and labor. In May 2014, the presidents of Russia, Belarus and Kazakhstan signed the treaty on the Eurasian Economic Union, which came into effect on 1 January 2015. Armenia and Kyrgyzstan joined in the same year.

One question about this organization concerns the real possibility of achieving an effective economic union in such a short time, taking into consideration how much time it took the European Union to achieve the same goal. A second problem is related to the Customs Union’s membership. If the Union really wants to become an influential block between Europe and China, as President Putin has affirmed, the increase in the number of member states is a priority. In fact, the Russian economy accounts for almost 90 percent of the Union’s total economic volume, making the participation of Belarus and Kazakhstan almost symbolic. Belarus in fact depends on Russia economically, while Kazakhstan has joined just to have a market for the export of raw materials, rather than for the benefits of a common economic space.

The challenge of the Eurasian Economic Union also concerns the real economic benefits that it should generate for its member states. In 2011, trade between member states increased by more than 34 percent, and by 15 percent in the first semester of 2012. This result, however, seemed to be related to the post-crisis recovery of 2009, when the Russian GDP fell by more than 8 percent. By the second half of 2012, the growth of trade had already declined to 3 percent. According to some observers, such figures indicated the end of the Customs Union’s beneficial effects. Such trend was further confirmed during the first semester of 2013, which saw a -5 percent downturn in trade with Belarus and just a 2 percent increase with Kazakhstan. Finally, another difficulty that the Customs Union has to face concerns the entry of its member states into the WTO and the need for regional regulations to be in line with the multilateral ones.

Importing in Russia

Because of complex procedures, importing goods in Russia is not easy. The access of western products to Russia is difficult due to the sanctions imposed by western countries following the political tensions with Ukraine. In case of import declaration, the declarer has to be a Russian physical or legal person, except for physical persons importing personal effects. Non-residents can address to a customs broker, that is a person authorized to provide customs services to third parties.

For the import of some kinds of products (such as food commodities, medicines, detergents, cosmetics, perfumes, electric appliances and electronic components), it is necessary to have a certificate ensuring the products compliance to Russian standards as regards consumer protection and safety. The Rosstandart is the responsible body. The products requiring the certificate of compliance can be cleared only if they are accompanied by the Gost-R certificate.

Russia, as well as the European Union, uses the Commodity Description and Coding System, called “Harmonized System”. Commodities are usually subject to three kinds of taxes: the customs duty, the value added tax and, for some products, the excise tax. According to the kind of commodity, it is possible to impose specific, ad valorem and compound duties. The Russian tariff is divided into 4 sections according to countries. European countries benefit from the “most favored nation” clause, they are thus subject to the basic tariff.

The Gost R certificate

The Russian regulatory framework is different from the European one; it requires most products to be accompanied by a specific certificate proving that they meet Russian standards. The Gost is a system launched with the aim of protecting public health and the quality of the products in the Russian market. Such document can be issued by a Russian institution or a foreign one, as long as it is authorized by the Rosstandart. Most products have to be accompanied by this certification in order to be cleared and marketed in Russia.

Trade between Italy and Russia

Italian companies operate in the majority of Russian regions, but most of them are located in Moscow and St. Petersburg. Trade between Italy and Russia is still suffering from the effects of the economic and financial crisis that hit the country in 2014 – 15, as well as from European sanctions. In 2016, trade volume amounted to €17.4 billion, while in 2015, it amounted to over 21 billion. Italian imports have suffered the worst downturn (-46 percent). Fuels, which represent a considerable share of Italian purchases (65 percent), have confirmed the decline of the years before. Moreover, such sector curbed again in 2016, with a decrease of 31.2 percent compared to 2015. However, despite the reduction of the imported quantity, such figures also result from a decrease in the price of hydrocarbons.

Italian exports, which sharply contracted in 2015 ( – 25.3 percent ), saw again a 5 percent decrease in 2016. The sales decline affected several trade sectors; the machinery sector, which accounts for 26 percent of total exports, has registered a 21 percent loss. On the contrary, food commodities had a slight recovery in 2016 ( + 4.1 percent ) and the same goes for clothing ( + 6.2 percent ), chemical products ( + 9 percent ), pharmaceuticals ( + 3.2 percent ), rubber and plastic items ( + 12 percent ).

Today, Italy is the 6th main exporter to Russia and occupies the same position in imports. At European level, Italy is Russia’s second largest trade partner, preceded only by Germany. Prospects for Italian exports to Russia are improving, however, achieving the before crisis sales level is quite difficult. Sectors were investments are advisable are: electrical energy, gas, steam and air conditioning, pharmaceuticals, health, means of transport and foodstuffs.

Sources:

- ITA
- www.ubibanca.com
- www.informercatiesteri.it

Immigrate to the United States: permanently or temporarily

5 June 2014 Expert

Stati Uniti d'America - immigrare

Immigrate to the United States: permanently or temporarily

Author: Pierre Varasi

Translation by Matteo Gaipa

March 2015

Since 1965 with the Hart-Cellar Act, the United States created the so called “preferences system” in order to facilitate the immigration of certain categories of persons. In addition to family members of citizens, and permanent residents, also workers sponsored by private companies have been favored.

140.000 places were available for them. They had to find a job in an American company willing to start the immigration procedure.

Today the “employment-based” category is divided into five subgroups. Every subgroup has a numerical limit.

1. You may be eligible as first preference with a 40,000 limit if you have an “extraordinary ability” in arts, science, education, business, athletics;

2. You may be eligible as second preference with a 40,000 limit if you have an advanced degree or extraordinary abilities above mentioned;

3. You may be eligible as third preference with a 40,000 limit if you are a skilled worker with two years work experience, graduates, and unskilled workers for jobs in which qualified workers are not available in the United States;

4. You may be eligible as forth preference with a 10,000 limit if you are a special immigrant such as religious workers, and people who has worked for the US government;

5. You may be eligible as fifth preference with a 10,000 limit if you are willing to invest between 500,000 and 1 million dollar for a company which will create at least 10 job. This is the easiest way, but of course it can be pursued by few people.

Unused quotas will be distributed between the underlying categories. Fifth category quotas, which are not assigned, will be added to the first category.

Moreover it is important to remember that there are other ways to be resident, for example the random “diversity lottery”. Once you have reached the chosen destination, the labor market is more flexible and accessible than in Europe, also promotions and career progressions are relatively easier if you know the language and you are willing to rise through the ranks.

If you are a resident worker it is not difficult to get a citizenship, it requires a quite long period, indeed if you have a Green Card you will obtain rights and duties of citizens after five or six years.

This is not an easy path but on the other hand it is possible to obtain a temporary job. In the United States million “non-immigrants” people arrive every year with a temporary visa. In 2013, they were 9,164,349. There are different ways of admission: tourism visas, worker visas, student visas, everyone with a temporary legal status. It is important for economical and political reasons to better describe the H category which includes workers, that in 2012 has obtained 611,912 concessions. 135,911 for people in specialty occupation: 65,345 agricultural workers, 50,000 seasonal workers, 80,015 families of workers with a H visa.

The main temporary worker categories are divided into three visas:

H-1B: this visa allows companies and American companies to hire foreign people in specialty occupations. They are highly skilled workers, and the ones who are likely to become permanent residents. This program allows people to work in the US for up to a total of three years, and it can be renewed only one time. The application for a permanent residence must be followed by the company sponsor. This visa has a 65,000 annual limit, and 20,000 places for students with a specialized degree obtained in the US. Renewals are not deducted from these quotas.

H-2A: this visa allows the entry of seasonal agricultural workers. They must be citizens of one of the 59 states, annually updated, which are allowed to send their citizens. Although there is no acceptance limit, visas are valid for one year and they can be renewed up to three years.

H-2B: these are seasonal visas but not agricultural. The application must be drafted by one of the 59 states annually chosen by the government. Validity and renewability are the same of H-2A visa. However there is a 66.000 limit.

LINK : USA GOV

SOURCES :

Immigration Policy Center
Report of the Visa Office
JH Wilson , Immigration Facts
Temporary Foreign Workers

South Africa COUNTRY PROFILE

5 June 2014 Expert Leave a comment

South Africa Country Profile

SOUTH AFRICA: GENERAL INFORMATION

Official name : Republic of South Africa
Surface : 1.221.041 sq. mt
Population : 55 million
GDP nominal : 723,5 billion USD
GDP per capita : around 13.154 USD
Capital : Pretoria, Cape Town, Bloemfontein; Johannesburg
Largest cities : Johannesburg (3.800.000), Durban (3.100.000), Port Elizabeth (1.500.000), East London (800.080), Pietermaritzburg (553.000);
Government : Unitary parliamentary republic
President : Jacob Zuma, elected in 2009 re-elected in 2014
Religions : Catholic, protestant e indipendentista
Lingua : 11 official languages; afrikaans, English, zulu, xhosa, tswana, sotho, tsonga, swazi, venda, ndebele
Currency : Rand (Z), Exchange rate: 1Euro=17,75 ZAR

SOUTH AFRICA: MACROECONOMIC FRAMEWORK

The South Africa economy is the most developed African economy, it is divided into different developed sectors , and it represents one third of the African revenue.
40% of the continent industrial production;
25% of African GDP
50% of electricity generation
45% of mineral production

South Africa has complex infrastructures, productive manufacturing sectors and a highly developed service sector with an efficient financial sector and strong institutions.
It is a perfect country for investments and trades, especially with South Sahara areas, that provides the access to the south African region markets for trade, logistics and finance.
Main business activities are focused on metropolitan areas such as: Johannesburg, Durban / Pinetown, Cape Peninsula e Porth Elizabeth / UitenHage.

South Africa has a strategic position because it is crossed by a strong transport network, that links goods and people with eastern and western world. It is a management and distribution hub that allows to access to neighbouring countries.

South Africa has on average 4.8 billion (with a peak of 9.5 billion) dollars of foreign direct investments every year. Generally these investments aim to expand trades in neighbouring countries such as: Mozambique, Angola, Zambia, Kenya, Madagascar and Namibia.

South Africa ranks position:

1st country for possibilities of credit facilities and local banks loans.
10th country for local and foreign investments protection
35th country in the “ease of doing business” ranking. Italy and China position respectively 87th and 91st
The public sector has always had a key role to develop South Africa economy, however the government is working to involve private sector in governmental enterprises.

SOUTH AFRICA: SECTORS AND GDP DISTRIBUTION

Agriculture: 3.8%
Industry: 31%
Service sector: 65.2%

SOUTH AFRICA : ECONOMIC FORECAST

The capital goods sector gives great investment opportunities, because South Africa is enlarging and modernising its infrastructures (with public investments), to promote a sustainable development for manufacturing productions but also for prime materials production and export.
Market spaces for intermediate goods: plants, agricultural and food service machineries, systems and equipments to produce, transmit and supply electricity, services and plants for telecommunications, products and services for highways, railways and planes; means of transport parts, mechanical goods for manufacturing industry, materials and equipments for constructions, civil works and civilian facilities, technologies for sustainable and renewable energy, security equipments and plants, technologies for environmental control and land protection; equipment for mining sector and IT technologies.
Consumer goods opportunities for leather and footwear, in other sectors there aren’t enough possibilities because of Asian countries competitiveness.
It is essential to encourage new investments in order to provide important technology investments, to hire local workforces and to manufacture goods intended to export.
According to the Department of Trade and industry (DTI), primary sectors are agri-food, chemical and pharmaceutical sectors ( 5% of GDP); automotive sector (6% of GDP) with 300.000 employees; transport sector, mining sector, energy and tourism sectors (3.4 of GDP with an average annual growth of 2.3%). In 2011 the Green Economy Accord was signed to create qualified green jobs in South Africa thanks to partnership between public and private sector. The goal is create by 2020 300.000 more jobs in the energy production, manufacture CO2 reduction products, agriculture for biofuel production, environmental heritage protection and sustainable tourism.
Other key points are: increase renewable energy consumption, produce ecofriendly stoves, use of trains for transport, creation programs to support sustainable projects and subsidies for a high educational program for young people.

FOREIGN DIRECT INVESTEMENT IN SOUTH AFRICA

In South Africa local and foreign investors are treated equally. Foreign investors are allowed to choose investment programs, type of business entity, kind of goods (except for defence and security goods) and use of internal funds.

FISCAL ASPECTS IN SOUTH AFRICA

Foreign companies are taxed only for the revenue made in South Africa and for capital gains of properties and assets income. Corporate income tax is 28%. From 2007 the Secondary Tax on Companies (STC), 10% on net shares of profit, added to the basic taxation have created a 36.89% tax. Branches and offices of foreign companies which operate in South Africa have a 33% tax on their profits.

LEGAL SYSTEM CHARACTERISTICS AND LEGAL ASPECTS IN SOUTH AFRICA
The Private Company is the most common business entity, it can be composed of an associate/sole manager and a legal representative residing in South Africa. Subsidiary societies (society managed by other societies) and foreign branches are under the South African law and they must be registered.

SOUTH AFRICA BILATERAL AGREEMENTS

- Double taxation agreements
- Agreements for investments promotion and protection
- Agreements for cooperation in arts, culture, education and sport fields
- Cinema coproduction agreements

INSURANCE ASPECTS IN SOUTH AFRICA

Insurability conditions SACE (foreign trade insurance services) without possibility of sovereign risk, bank risk, private risk and insurance policy transfer SACE for export and foreign direct investments.

SOUTH AFRICA LINK

IBS NETWORK DESKS
DESK LINKS

Sweden: renewable energy and industry

5 June 2014 Expert

Sweden: the new avant- garde in the energy industry

Svezia eolico fotovoltaico biomassa

Author: Martina Paoli
Translated by Martina Paoli
January 2016

SWEDEN: THE NEW AVANT- GARDE IN THE ENERGY INDUSTRY

Sweden has demonstrated to be forward-looking as early as 2005, introducing a number of policies aimed at respecting the environment, in order to become an inspirational leader in the renewable energy industry and be an excellent example on a global scale.

Recently, on the basis of the precarious environmental framework emerged during the International Conference on Climate Change held in Paris, the Swedish government has announced the intention of abandoning fossil fuels by 2020 and choosing more intelligent, alternative energy solutions. Other countries endorse similar initiatives too, including Costa Rica, Denmark (which has invested largely in the wind energy industry), Island (which obtain almost 100% of the energy from renewable geothermal sources such as volcanos, geysers, wind and waterfalls) and Norway, though it is still one of the world’s main oil and gas producers.

Currently, about 80% of the energy requirements of the country is satisfied by different sustainable resources, especially related to hydroelectric and nuclear power, while only 20% is connected to the use of fossil fuels. Nevertheless, according to Anne Vadasz Nilsson, Director General of the Swedish Energy Markets Inspectorate, Stockholm seriously intend to stop subsidize the nuclear industry because it is considered obsolete, too expensive and potentially dangerous. For this reason, at least 8 nuclear power plants will close very soon.

As declared many times before, the basic pillars of the political strategy of the Prime Minister Stefan Löfven are the precautionary principle, the fight against pollution and the effort to guarantee a clean, healthy environment for the future generations. The government has elaborated an eco-friendly investments plan, which includes the allocation of:

• SEK 4.5 billion in the next 12 months to create green infrastructures, install solar panels and wind turbines, and develop biomasses;
• SEK 50 million every year in technologies for the energy storage sector;
• SEK 1 billion for the thermo-modernisation of public and residential buildings, in order to reduce the energy consumption;
• SEK 500 million to promote renewable energy in developing countries.

Without a doubt, Sweden represents a leading, state-of-the-art model for other countries all over the world. Thanks to the love for the natural heritage and the diffusion of the “culture of reuse”, this nation succeed in recycling 99% of waste, importing them from abroad too. Electricity generated by renewable sources powers the public lighting system and transports. Most of the vehicles are hybrid, electric, or gas powered. There is a constant increase in the production of biofuels for the aviation sector. Furthermore, off the west coast of the country, the Swedish company Seabased AB has developed the biggest existing plant for the production of energy from sea waves. Despite the fact that it is a little-known industry, around 20,000 jobs are expected to be created by 2030.

SOURCES :

- huffingtonpost.it
- repubblica.it
- innovazione.diariodelweb.it
- treccani.it
- wikipedia.org
- tuttogreen.it
- greenreport.it

Tanzania

4 June 2014 Expert

TANZANIA – An introduction on Africa and its resources; Country Sheet and Opportunities in Tanzania

Africa is generally a huge natural resources basin, and it enjoys a varied climate that allows a rich agricultural production diversity, typical of a temperate climate. Rich harvests of vegetables, corn, and grapevine are made; there is also a big variety of fruits typical of a tropical and equatorial climate. The geographical position of the African continent, which is surrounded by the sea, is a huge advantage for communication with other continents and countries. Fishing is allowed everywhere and it is very abundant, and it represents a significant additional resource. Nonetheless, differences in the level of development among African countries are very great; still a few number of African countries can communicate and establish a connection with the Western countries. Harsh economical, religious, health and cultural conflicts are slowing down the chances of these countries and of its citizen to grow. Unlikely as it seems, countries such as Libya, Kenya and South Africa, which have the potential required, are constantly in turmoil for political, racial or religious causes.

AN EXCEPTION: TANZANIA

After examining the French-speaking countries in Africa (Morocco, Ghana, Guinea, Senegal) the focus is on an English-speaking country: la Tanzania.

SOME DATA
- Population in Tanzania: about 47 million people.
- Capital: Dodoma.
- Government: Unitary presidential constitutional republic LINK GOVERNMENT SITE
- Currency: Tanzanian shilling.
- Official languages: Swahili, English.
- GDP: $79.29 billion USD.
- GDP (PPP): $1713 USD.
- Requirements and conditions that grant a loan by SACE.
- Tanzania is among the founding member of WTO.
- Togheter with Kenya and Uganda, Tanzania is a member of the East African Community, established on 30/11/1999.
- Through “Africa Growth and Opportunity Act” Tanzania has trade agreements and a special treatment for exporting to the United States.
- Tanzania is part of “Convention Establishing the Multilateral Investment Guarantee Agency” (MIGA), and it is a member of “International Centre for the Settlement of Investment Disputes”; Tanzania also signed an agreement for the promotion and protection of foreign investments with Italy in 2001.

TANZANIA’S STRONG POINTS

PRESIDENTIALISM AND PEACEFUL COEXISTANCE
Ex-Commonwealth colony, Tanzania benefits from the German colonisation after the First World War and from the English dominion starting in 1964; Tanzania’s independence followed, as the country became a Presidential Republic. A key-figure was the charismatic “Father Nyerere”, who is still remembered as “The man who showed the way to follow”: he managed to offer an example of brotherliness and peace, setting the conditions for the harmonious coexistence of Islamism and Christianism, the two main religions.

ECONOMICAL AND E POLITICAL STRATEGIES TO ATTRACT FOREIGN INVESTMENTS IN TANZANIA
His followers followed that same path, including the President in charge. He has to be credited for creating the economic and political conditions to foster and increase foreign investments and assets.
The Tanzania Investment Act (1997), through Tanzania Investment Centre, regulates all foreign investments. This governmental agency coordinates and promotes investments through assistance to firms and foreign investors. Moreover, the Certificate of Incentives attests the status of investors in Tanzania. The “Mining Act” (1998) regulates authorizations as regards mining and oil concessions. The minimum capital in equity to invest in projects completely controlled by foreign investors is $300.000 USD, whereas to establish a company with a majority of Tanzanian investors, or under Tanzanian control, the minimum capital required is $100.000 USD. There are several different incentives and tax breaks according to the field and to the effect of the foreign investment on local economy.

ADVANTAGES FOR FOREIGN INVESTORS

- Being Tanzania a member of the “Multilateral Investment Guarantee Agency” and of the “International Centre for Settlement of Investment Disputes” in this country there is full recognition of the private property and protection of foreign investments; furthermore, it is possible to transfer abroad all of the profits and some capital in currency.
- After the establishment of the “Special Economic Zones”, Tanzania has had tax advantages on investments, in areas in 25 parts of the Country.
- Cancellation or high reduction of duties on goods imported in the country linked to the established company.
- Complete deductions of the expenses for machinery, plants, buildings and structures linked to agriculture.
- Extension of VAT payment on real estate.
- Complete refund of DUTIES on imported raw materials.
- Removal of VAT on exported manufactured goods.
- Possible deductions, with favourable treatments, on depreciation of capital goods.
- As regards mining sector, there is no recovery of the annual reassessment in capital.
- Loss-making in company management can be deducted for tax purposes also the following year for a period of 5 years; for mining sector, that applies for an indefinite period, too.
- Tax breaks and quicker procedures for permissions and authorizations.
- Authorization to have expatriates in company management.
- Other facilitations according to the sector and the typology of the project.

LEADING SECTORS IN TANZANIA

Tanzania’s economy is being affected by the country’s agricultural vocation, which represents about 50 % of the GDP; nonetheless, due to the climate and the geography, cultivated areas are only 4% of the territory. The main products are tea, coffee, cotton, pyrethrum (extract from chrysanthemum, a natural insecticide), sisal, tobacco, cashew, corn, clove, wheat, tapioca, banana, and fruit. Another developing sector is cattle and goat rearing, and it employs 80% of the working population. Tuna and sardine fishing in inland waters for export is another relevant sector in Tanzania. Extractive industry, gold, diamonds and salt especially, is and expanding sector. There are also modest quantities Iron ore, coal, tungsten, lead, kaolin, magnesium, phosphate.

EXTRACTIVE INDUSTRY
We would like to point out that in the last 20 years the extractive industry has carried on a stunning growth, which has attracted several multinational companies and the Small Scale Miners, a network of more than 2 million small miners. LINK OPPORTUNITY FOR INVESTORS IN MINING, GOLD, DIAMONDS

EDUCATION
Tanzania has always cared about schooling, carrying on several welfare political actions since German and English colonization, all aimed to reach not only the biggest urban centres, but also the most isolated villages. However, education still does not cover efficiently all of the territory, and that should gradually change.

RELIGION
Religion in Middle and Far East and Africa is usually a delicate theme, and it is often a cause for conflicts and troubled coexistence. In this sense, Tanzania is a one of a kind: since its independence in 1964, it has been an actual religious oasis. Here, Catholics and Muslims live together and collaborate, following the indications of the various Presidents that have followed in the United Republic of Tanzania. Strangely enough, this happens also in small villages, where there are people who practice different religions. Even though Muslims usually get more resources, there still are other donations for building places of worship for different religious communities.

SOME OF TANZANIA’S WEAKNESS

HEALTH AND HEALTH SERVICE
Child mortality in Tanzania is caused by water, which is often not drinkable or unavailable; this increases the spread of diseases like typhus, diarrhoea and respiratory diseases.
Other causes of the chronic growth of mortality are the scarceness of food in quantity, quality, and energy input; the absence of basic measures of protection like mosquito nets against malaria, a disease sleep-related. Another alarming fact linked to health, rather recurring, is the condition of local miners: they risk serious diseases, including cancer caused by barehanded mixing of the gold sludge, which contain mercury. Considering that hospitals are mainly located in big and very far residential areas, healthcare is generally lacking; hopefully foreign investments can help building new efficient structures with time, or at least creating local structures like small pharmacies, provided with pharmaceutical products and vaccines, along with the help of some medical and paramedical staff all week long.

WATER AND WATER RESOURCES
Water is a precious and vital resource for any village or community, for survival and for foreign direct investments. Thus, it is essential to intervene by creating stable, permanent natural deposits and drinking water plants; and for increasing necessities, by building artesian aquifers. The favourable weather conditions, which allow some harvests during the year, encourage the creation of suitable irrigation systems near lakes or rivers.

FOOD AND FOOD DISTRIBUTION IN TANZANIA
According to the last ten years’ experience, heads of the family worry every day to maintain their beloveds, despite salaries are often meagre and the habit of spending in alcoholics and beverages large parts of those salaries. It is therefore desirable that foreign investors should give higher salaries, as people deserve, and to educate them to restrain themselves from alcohol, reassuring them that they will get what they need for support their families. Moreover, the creation of small local shops away from the big cities supplied with products such as corn flour, wheat flour, rice, milk, vegetables and non-alcoholic beverages would also reassure those who earn an income about constantly supporting their families.

Tanzania for investors and backers: concessions for gold and diamond mines

4 June 2014 Expert

Tanzania for investors and backers: concessions for gold and diamond mines

Tanzania: opportunities in MINING sectors for international investors and backers; gold mines, gold deposits, gold concessions, diamonds

OBJECTIVE

International investors and backers are sought for a project in Tanzania involving gold. Attached and detailed documents concerning a complete Business Plan and feasibility studies are available subject to subscription NDA (NON-DISCLOSURE AGREEMENT). It is also possible to obtain a concession in a 45 sq km area in Tanzania with diamond deposits; nonetheless, it is not possible to publish any of this information in this document, thus we require that you register as a reliable spokesperson by CONTACTING US

LINK TANZANIA COUNTRY SHEET

LINK IBS DESK

GOLD MINING PROJECT IN TANZANIA

INTRODUCTION

Your new company will establish in Tanzania, in order to undertake a gold mining project in Matinje and Kilabili, two towns in the Igunga District in the Tabora Region and Shinyanga.
The plant will be located next to the villagae of Matinje – Kilabili, in the area covererd by PML, which will be bought or leased by the new society.

Mining equipment include:

- Processing plant. + Knelson C + Add. Ball M. + Chemical Laboratory;
- Lorry (ies) with cranes (10 tons) and dumpers;
- 4×4 Car (s) + Van to transport employees;
- Shovels+ excavator;
- Fork lift + equipment + tools;
- Cisterns for diesel;
- N°10 kits for mechanizing shafts: jackhammer, compressors, bits, ventilation equipment, elevator hoists, water pumps, portable generators, security kits, and more;
- N°10 Water deposit cisterns;
- 20 tons lorries;
- 200 Kw generators with control panels;
- Core drill;
- 15/20 t Crane;
- Technical, geological, sanitary, security and environmental impact equipment.

The project will produce an income for both the producers and the inhabitants of the area interested in it: it will revamp local economy by creating new vacancies and strengthen trade, which is linked to the mining sector. Technical services, geological and geochemical studies, along with surveys, drillings, mining activities planning, security, environment and health management will be exclusively managed by the new society. Through an environment-friendly plan, there will not be major environmental impact. Leaching with iodine will be used, instead of the cyanide-based one that multinational corporation prefer: this process is more affordable and environment-friendly. The project will have positive economic and social outcome.

HOW TO ACHIEVE THIS PROJECT

The main goal is to seize a business and an investment opportunity: there are three different ways to fulfil the project development procedures and its objectives. Those can be combined.

OPTION N° 1 – “FINANCIAL” EXPLOITING

Financial exploiting will start by choosing the right gold deposits: they will be chosen through geological studies, satellite and air collections of data and geophysical survey, sampling and laboratory testing. Secondly, Report of Resources will be drawn, and afterwards edited by specialized societies ( S.G.S Switzerland, OMAC Northern Ireland, etcetera. ); finally, specific certificates will be issued as credit lines for financial management on platforms. This will take up to 10 to 12 months, if liquid assets still exist; the minimum expenditure for the investment is 3 million euros average. The certificates may be inserted in the Stock Exchange, thus be sold to potential investors, with high investment returns.

OPTION N° 2 – MINING MINERALS

Certificates enable the investor to extract, process and trade gold, besides financial exploiting through underground trenching and vertical shafts complete with mechanization kits (open pit or open-air extraction included). Should the investor be interested in extraction, the project provides to a further minimum investment of 3 million euros average, with an implementation period of 10 – 12 months if liquid assets exist. A iodine-based processing system will eliminate the risk of the cyanide system, which has traditionally been used by big companies operating in this field: it involves cyanidation and mercury, both highly toxic elements which cause serious illnesses and deadly environmental impact.

OPTION N° 3 – EXPLOITING CONCESSIONS ALREADY ANALIZED

This third option might allow taking advantage of concessions that have already been “analyzed” through open vertical shafts and existing lodes of gold, which have been previously assigned to local miners. We may buy those concessions, or get in a JV Joint-Venture; it will be given to the new society at least 90-95% of the value, seen the financial investment brought to the project. Any of these options will guarantee tangible return in a very short time, because the product is paid on delivery after verification; the compound return benefits from such quickness.

FURTHER INFORMATION ON THE MINING PROJECT

A FLEXIBLE INVESTMENT

The procedure allows planning the investment on its own (geological studies, geophysical survey etc.) releasing the Certificates and using them to financial management on platforms, it also allows creating a start-up for excavation, processing and trading products. Thus, it is possible to limit the investment to the Certificates or to pair it to the mining project.

TIMING OF THE INVESTMENT

People may think that the mining sector might be a slow one, nonetheless it is a key feature of the project to capitalize time, so that the whole investment will last 5 years, which might be hastened to 3 years.
Reducing time can be possible by concentrating the assets at most, realizing increased output and profits.

A PROFITABLE INVESTMENT

Such a profitable investment allows to achieve the expected goals, besides having the best commodity guaranteed and assured by international and global transactions.

QUICK AND TANGIBLE PROFITS

Profits will come quickly, reducing the gap between costs and incomes. This is an advantage in the present globalized system, and it reduces risks in transactions.

OBTAINING BETTER RESULTS COMPARED TO PREVISIONS

In the Feasibility study, which is a decision-making tool for attracting interest to the investment, the values taken into consideration assume a major importance. As regards the business plan and the anticipated profits, a prudential assessment will be drawn, in full respect of the professional ethic.

DIVERSIFICATION AND GENERAL RISK OF THE INVESTMENT

Diversification is included in the Feasibility study and as a strategy “in progress”.

KNOW HOW AND SKILLS

Our Italian customer offers:

- the possibility to obtain several concessions (n. 32 per ha. 41,8) and to get a selected list of additional concessions, which will be verified in order to acquire the best ones;
- ten-year experience, which will allow to speed up African bureaucracy, shortening times and becoming operative rapidly; creating a productive financial start up in a few months’ time, overcoming difficulties that would normally take years to be solved;
- strengthened and prized relationships with professionals of the mining sectors: mining engineers, government geologists and freelancers in the capital city Dar es Salaam;
- all of the best specialists and geologists, along with the Geological Survey of Tanzania will take you and your business into great account; the Geological Survey of Tanzania is the first national authority in terms of geological studies.
- privileged relationship with the Regional Institution of the Ministry of Mines of Shinyanga: this one represents 90% of the national mining sector, and it includes the main multinational companies of this sector, such as Golden Pride, Barrick, Geita, Anglogold and Kahama;
- privileged relationship with the person in charge for this region and with the Principal Geologist of Ministry, both available to collaborate to this project: it will hugely increase its professionalism;
- innovative industrial technology, like the latest-generation iodine systems, which enables the plants to be moved when needed. It also provides for the workers and the small scale miners: they will be working in a much healthier environment and they will benefit both from an economical and a social point of view;
- professionalism is guaranteed; moreover, you will have eight stable trusted partners.

SOME PHOTOS OF THE SYSTEM OF GOLD PROCESSING BY IODINE

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TUNISIA COUNTRY PROFILE

2 June 2014 Expert

TUNISIA COUNTRY PROFILE

LINK TUNISIA GOVERNMENT
LINK TUNISIA ARAB SPRING

GENERAL INFORMATION

- Official name: Tunisia;
- Tunisia surface: 163.610 km2;
- Population: 10.480.934 million of which 17.7% is labour force;
- GDP: 45.407 million $
- GDP per capita: 4.213 $
- GPD forecasted growth: more than 3.3% ;
- Capital: Tunisi around 2 million citizens;
- Other cities: Hammamet, Susa, Tabarka, sea cities with a high flow of tourists, industrial Sfax, Qayrawan (Kairouan), religious capital, Tozeur, Gabéz, Biserta, last city before the desert, Douz (also known as “The desert door”);
- Government: Unitary semi-presidential republic;
- Main religions: Muslim, Catholic minority, Jewish;
- Languages: Arab, French (around 63% of the population speak it);
- Currency: Tunisian dinar

TUNISIA POLITICAL FRAMEWORK

CHANGES AND POSITIVE ASPECTS

- Political changes and the Revolution have been made in order to ensure stable conditions ;
- Economic and policy reforms;
- The economic opening-up supports foreign investments ;
- Important strategic position due to its geographic position as an access to Africa and “zero problems with neighbours”
- Actions in order to intensify and diversify foreign relations;

PROBLEMS AND NEGATIVE ASPECT

- The democracy is “in progress”;
- Risk of terrorist attacks.

MACROECONOMIC FRAMEWORK AND TUNISIA OUTLOOK

LEGAL ASPECTS

The economic dynamism of Tunisia has developed important production plants, very productive, especially in the service sector. Currently trade and tourism sectors are the main puller of a fragile economy.
Other important sectors are agriculture and the transformation of agricultural products, local craftsmanship, and mineral extraction (oil,lead, silver, zinc and mercury).
Other important aspects :
- Sing up of the FTA (Free Trade Agreement) in 1995.
- Inflation around 6%;
- The relation between foreign trade volume and GDP is around 49,5%; Tunisia integration in the international trade system is excellent.
It is important to underline that Tunisia economy rely a lot on foreign trades. According to world report on Davos competitiveness, Tunisia ranks among first places for its competitiveness( 40th in 133 countries for and 35th for infrastructure quality); the report Index of Economic Freedom, ranks Tunisia 95th on 179 countries and 12th on 17 Middle-East and North Africa countries, with a “mostly unfree” Index of Economic Freedom.
Moreover Tunisia has started to liberalise foreign trade since 1990, becoming member of G.A.T.T. Currently, foreign trades are based on the law n.94-41 of 07/03/1994.

TUNISIA has also signed many bilateral trade agreements that contribute to consolidate the position and the subscription of the international framework, in particular:

• Bilateral agreement that creates a free trade zone in Tunisia;
• Agadir fee trade agreement between Jordan, Egypt, Morocco and Tunisia
Signed and subscribed in 2004;
• Bilateral agreements with Libya Iraq and agreement with Gulf countries to create a free trade zone.
TUNISIA is a CIRDI member and supported in May 2012 the OECD declaration for international investments and multinational companies.

STRENGHTS

- Balanced country and commercially attractive;
- Structural reforms implementation;
- Basic economic indicators are solid;
- Strategic geographic position;
- Access to many markets and diversification through different bilateral agreements with African countries;
- Growing domestic market and young population;
- Tourism sector has a continuous growing.

WEAKNESSES

- Young democracy;
- Dependence increased by foreign capital flows and investors trust;
- Tunisia depends on foreign energy supply;
- Deficit of current accounts;
- Corruption.

GROWING SECTORS

- Clothes/textile;
- Iron and steel sector;
- Car sector;
- Banks;
- Costruction of big infrastructures;
- Air and sea transport
- Environment and Ecology;
- Renewable energies and sources;
- Personnel training;
- Tourism;
- Craftsmanship;
- Agriculture.

REAL ESTATES AND CONSTRUCTIONS

The construction industry is one of the most important sectors in Tunisia.There are around 20.000 companies with a turnover of 3.000 million € per year.

That is 10% of Tunisia turnover and around 7% of its GDP, for this reason the construction sector is the fourth most important sector of Tunisia economy ( after textile, clothes, agri-food and agricultural sectors). However cements is the most exported good.

FINANCIAL SECTOR

Since 1995, after the have signed up the Association Agreement with EU (in effect since 1998), the Tunisia opening to the foreign trade has progressively increased in order to prepare the country to the definitive access at the free trade zone with the European Union which has been completed, for industrial products, in 2008. Tunisia has created a series of important structural reforms in order to improve the competitiveness of its economy, to support private investments, to rely more on its business and to modernise its financial and bank systems.

From several years the Italian cooperation has contributed to supports the balance of payments; a 95 million € credit program that has started in 2012. Despite important reform progresses in order to rebalance development banks and policies against laundering, Tunisia financial system does not completely answers to investors expectations, because there isn’t competition nor innovation.
Tunisia Central Bank has started a decreased the regulation system giving to credit companies a higher flexibility in the classification of risky loans. In this way, it has given considerable amount of money to te financial system.

This politics has created a re-financing dependence between many companies and the Central Bank. Risky credits, represented around 13% of the loan portfolio of the banking system.
The banking system is divided, with more than 20 credit companies that represent 100% of the GDP, with a 11 million people population.
In Tunisia the government controls around 40% of the sector, this has negative effects on productivity, overall efficiency and the creation of innovative structures.
A risk for the Tunisian economy is the increase of the deficit, due not only to the increase of interests on public debt, which is constantly increasing, but in particular to “peace” policies of temporary governments that have indulged the increase of minimum wage, created thousands of new jobs in the public sector, post-crisis compensation costs, and supported retail prices for commodities.

In 2013 the value of Tunisian dinar have decreased of 12%. It was due to unbalances between demand and offer (weaken because of the crisis of the biggest export companies) and the demand of foreign currency (increased by higher imports). The crucial variable for the development of Tunisian economy in short and medium period is the recovery of social and political balance and adequate security conditions. Because of the continuous Tunisian export market fragility, this recovery will have to be based on the main components of the domestic demand (families consumption and investments).

Consumption is subjected to a negative influence both from uncertain salary prospects and from the decreased availability of finances from banks. Tunisia is committed to take important actions to improve the banking system. The main problems are assets quality weakness and limited levels of capitalisations, especially for public banks. The public bank consolidation strategy wants to create an Asset Management Company (AMC) that has to absorb non-performing loans of the sector. The AMC will be on effect for nine years but is not certain whether it will work on NPL or just those linked to tourism sector.

ENERGY

After a series of bilateral agreements (also with the EU) Tunisia can be considerer an excellent access to the North Africa area; in Tunisi there is the Mediterranean Centre of Renewable Energies (MEDREC) IMET, which is a perfect context fro contacts and information on renewable energy sector in the wide Maghreb area.
Indeed the Maghreb region has an high potential for renewable energy development, especially for solar and wind-power energy. It is foreseen that the use of these energies will strongly increase in the near future.

Renewable energy projects, currently in the framework of bilateral agreements between IMET and Tunisia, will be part of the MEDREP. Future projects will focus on the electricity distribution to rural isolated populations, thorough a small scale electricity network. It is important to pursue an increased and accelerated integration of renewable energies in the national electricity network, with the goal of reaching a balance on the network, between demand and offer.

The idea is indemnify the global approach of the introduction of renewable energies (in particular solar and geothermic energies) in the construction sector according to the norms in force for energy efficiency: MEDA results programs for the integration of solar technologies in the sector. Moreover, focus on the sea water desalination, in order to increase potable water stocks and the availability of water resources for irrigation. Increase the use of pumps that work with solar, wind-power, biomasses energies in the farming sector.

Another area of interest is the diffusion of refrigeration systems for food storage, renewable energy systems, in farms and fish shops; the goal is promoting in urban areas the use of solar system at home, the installation of small wind-turbines or energy technologies that work with biogas and biomasses;

PHARMACEUTICAL AND SANITARY SECTORS

The progressive improvement of socio-economic conditions, even if slowly and with limits in the real access for the entire population to fundamental services, and an increased attention to health topic, are important factors for healthcare , sanitary and pharmaceutical markets in which work the main multinational companies of this sector. The current Tunisian government is improving healthcare establishments, extending, among the other things, also services opening hours. Industrial Tunisian pharmaceutical production regards around fifty companies with 50.000 employees. The production is focused on therapeutic and preventive drugs 45% are generic drugs.

Tunisian drugs production covers 50% of the domestic real needs. Added to the Tunisian national production, Tunisia has to import drugs from France (44% of imports), Germany, Switzerland and Italy (6%) for a total amount of 550 million TND (270 million €), with an average rate growth of 10% per year. 98% of imported drugs have a therapeutic purpose. Tunisia export are around 15 million €, 60% is exported to North Africa, in part in Europe (France, Belgium; Switzerland) and only a few to other African countries. Recent evolution, concern the development of a cooperation agreement between the Tunisian government and the British company”Hygiene Worldwide” in order to supply to the healthcare national service a liquid with bacterial properties “Genie” which doesn’t contain alcohol in order to respect Koran rules.

SERVICES

Currently the main branch of service sector are the telecommunication and IT (Information technology) that in the last years have been supported by the government, in order to make Tunisia a regional hub, capable of linking the African continent, Middle-East, Europe thanks to its strategic position in the Mediterranean Basin. Currently trade is the second sector, followed by tourism that despite the decrease after the 2011 revolution , is an important sector for Tunisia future. Bank and finance sectors liberalisation and privatisation processes are an obstacle to the attraction of new foreign capitals and to improve the access to the credit by companies, despite past improvements.

TEXTILE SECTOR

Textile and clothes are 35% of the overall Tunisian production and attracts investors for 15% of the overall manufacturing sector. Around 90% of Tunisian companies working in the textile sector works in the clothing sector and in the knitwear packaging. In this branch work thousands of companies, of which around 2000 have more than 10 or more employees. Among those 83% are exporting companies, which is 41% of the manufacturing industry. Tunisia is a large producer of clothes for third parts, thanks to its low cost labour and for its strategic position in the middle of the Mediterranean, moreover, near to a wide and rich market of potential buyers. Companies with more than 10 employees are around 200.000 and 178.000 are totally engaged in the export and 17.000 employees work in companies with a partial export, this underlines the Tunisian vocation for exports.

2/3 of foreign capital companies are owned by foreign people. 350 from France, 240 from Italy, 82 from Germany and 120 from Belgium. The division and distribution of countries that invest in the textile sector in Tunisia represent its political and economic relations. In 2010 before the “Jasmine Revolution”, that have slowed down the main sectors of the economy, the Tunisia textile sector export toward the most important Tunisian market, the European Union, it reached 2.3 billion €. Even if Tunisia has less citizens than Morocco, it is the 5th largest EU supplier , after China, Turkey, India and Bangladesh. The main EU clients of Tunisia are France (36%) Italy (32%) and Germany (10%)

AGRI-FOOD SECTOR

Agri-food sector is a strategic sector for Tunisia. Companies of this sector are around 1000 and 18% work only in the export. There is a national inclination for agricultural production , food transformation and food for domestic consumption. Employees working in companies with more than 10 employees are 70.000. One of the features of this sector that we signal is that 11% of agricultural sector companies and food transformation , are supported by foreign finances,only 2.8% is totally owned by foreign investors. Italy has 40% of foreign participations in this sector, France around 35%. As it is for other sectors of the country the proximity with our country is at the same time and advantage but also a limit for the competition with our companies.

There are several ways to penetrate the agri-food sector, however the best two are bought local companies or participate in existing companies. Currently the agri-food sector situation doesn’t allow an horizontal expansion with the buying market quotas, but is better to enter in local companies specialised in food transformation and production processes mechanisation. There are many investment projects in this sector, some of those collected 2 million €. However, it is important to underline that the territorial proximity, excellent trade political and cultural relations, could persuade soma Italian companies to modernise the Tunisian industry through a continuous growth, the creation of high-tech machineries in order to transform, store and package products.

BUSINESS ENTITIES

Analysis of the creation of a society in Tunisia. Tunisian trade code has 6 kinds of business entity:

- S.A – Anonym society
- S.A.R.L. – (limited reliability companies)
- S.U.A.R.L. – ; Limited reliability one-man company
- S.N.C – General partnership;
- S.C.S – Limited partnership companies;
- S.C.A. – Limited partnership joint-stock companies
Most spread business entities in Tunisia are Anonym Society (S.A.) Limited Reliability Societies (S.A.R.L.) and Limited Reliability One-man Company (S.U.A.R.L.); these societies are ruled by laws alike to European laws, in particular French ones.
For societies with a foreign participation, the Tunisian investment code supports the creation of:
- Foreign company branches: in order to establish a branch it is necessary to create and give to the authorities the original copy of the company statute or the equivalent certificate of corporation, with attached the company address or the address of the main bureau;
- Partnership: there is no limitation for number of partners; however every partner is responsible for company debts. The law does not provide the obligation of account revision and it is not necessary to publish budgets;
- Joint venture: This type is supported through government agencies, and JV can be created both with a partnership and as limited companies. Tunisian law rules the majority of trade activities, and JV can be established only after a formal application, and after the deposit of declaration, released by authorities:
- A.P.I.I. – Agency for the promotion of industry and innovation , for every industrial activity and services linked to industry;
- CEPEX – Center of exports promotion, for projects linked to international trade;
- A.P.I.A. – Agency for the promotion of agricultural investments, for projects in agricultural sector, agri-food and fishing sector;
- O.N.T.T. – National body for tourism, for projects in the field of tourism;
- O.N.A.T. – National body for craftsmanship, for craftsmanship activities;

SUBSIDIES

Law number 93-120 regulates subsidies for entrepreneur investments in Tunisia, Tunisian or foreign investors, resident or not, also in the joint-venture form. JV are supported by government agencies and they can be established with a partnership or by limited companies.
Moreover it is important to underline that the Tunisian fiscal system has been reformed. The 16th May 1979 the Italian and Tunisian Republics have signed and subscribed in Tunisi the Agreement to avoid double taxations on the revenue, in order to avoid tax evasions, through a protocol, in force since 17th September 1981.
The agreement on double taxation is adopted to residents in one or both signing States (Italy and Tunisia) and it is applied on revenue taxations withdrew for every signing country, through administrative or political subdivisions, whatever the withdraw system is.
Taxes on the overall revenue, taxes on the purchase of movable or immovable assets, taxes on the total amount of salaries paid by companies, and taxes on added value. It is interesting to underline subsidies for export societies.

Society that only export are:

- Societies whose production is intended only for exports;
- Societies that work abroad or in Tunisia but giving services abroad;
- Societies that work only with foreign companies or in free zones or with foreign financial institutes;
Export companies have a taxation similar to those of the free zones except for administrative orders limitations after 2015.
Best subsidies give the possibility of a total exemption from revenue taxes and revenues of first ten years of activity and a 50% reduction for the following years. Extension of the period in which the revenue deduction is in effect (and export profits).
Fiscal relief on revenues and profits re-invested in the initial capital or to increase on condition of minimum taxation.
Fiscal relief on profits re-invested in the company, on condition of minimum taxation.
Faculty and possibility of import (total exemption of rights and taxes) goods needed for the company production.
Total exemption from registration rights and VAT on company activities.
Possibility of earning on the domestic market 30% of the income.
Possibility of hiring at most 4 foreign employees or workmen.

TRADE AGREEMENTS

- Trade agreement with 41 countries;
- Free trade zone agreement with 11 countries;
- Multilateral agreements with 50 countries;

COUNTRIES WITH FREE TRADE ZONE AGREEMENT (IN EFFECT)

- Bilateral agreement to create a free trade zone with Turkey;
- Agadir free trade agreement with Jordan, Egypt, Morocco and Tunisia signed in 2004;
- Bilateral agreements with Libya, Iraq, and other agreement with Gulf Countries in order to create a free trade zone;
- Arab League multilateral agreement;
- Arab-Mediterranean free trade zone;
- Free trade agreement between Tunisia and EU.

DEFENSE AND JUSTICE

The Tunisian judiciary system is based on French right.
2014 Constitution is very advanced compared with near countries constitutions. It has been drafted according to democratic constitutionalism and parties request, inspired to Islam, in the Constituting Assembly.

Tunisian judiciary institutions are:

- 1 Court of Cassation;;
- 10 Appellate Courts;
- 23 Courts of first Instance;
- 83 Cantonal Courts;

IBS FOREIGN NETWORK DESKS

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Tunisia and the Arab Spring: the success of the Awakening

1 June 2014 Expert

Tunisia and the Arab Spring: the success of the Awakening

Author: Pierre Varasi
January 2015

The 23rd November 2014 Tunisia dealt with its first democratic elections since its birth in the ‘50s, after obtaining independence. Since that moment, the Neo Destour party, one of the most repressive and authoritarian of the Arab world, has led the country. The demonstrations that since the end of 2010 have concerned all Tunisian cities, originating the so-called ‘Jasmine Revolution’, inspired the Arab Spring, considered a revolutionary movement that should have brought democracy to all the states involved (from Morocco to Yemen). Unfortunately, in most of them what the Arab Awakening left has nothing to do with democracy: instability is everywhere, with a civil war in Syria, militaries in power in Egypt and terroristic groups that threaten peace.

Tunisia is perhaps the only exception among these countries, the silver lining of years of internal fights. The elections, followed by a second ballot the 22nd December, saw the victory of Bèji Caïd Essebsi, of the moderate party Nidaa Tounes, that defines itself as secular, social democratic, liberal and innovative. The party won with the 55.68% of total votes, opening a new chapter of Tunisia’s history, and this should bring to the country’s stabilization.

We are now waiting for the creation of the government, expected this month, and from that moment, it is all downhill. Nonetheless, as always in today’s globalized world, internal work, as necessary as it is, will not be enough. Before the protests that began in 2010 the 7% of the country’s GDP consisted in tourism, and it will be difficult to bring it back to those levels, after these hard times. Economy has almost always gone hand in hand with democracy, and as much as the causal connection is not clear, it is easy to understand that a working economy will be in the next months one of the most important factor in deciding the effectiveness (or ineffectiveness) of the new government, its length and outcome.

While in a stable country economic problems can lead, in the worst scenario, to new elections, in a democratically fragile and young state, close to even more unstable countries, we cannot consider the attempts to make things work properly unlimited. Politicians and the population itself cannot underestimate the risk of an ‘authoritarian fall back’. An economic growth is definitely more important here than anywhere else. The institute of microcredit, which was born in Bangladesh in the ‘70s, has a decisive role here, as in all ‘Third World’ countries; however, the growth has to come both from the government as well as from national and international entities to be enduring.

Reforms have already begun, and from January 2015 the new financial law will be effective. Presented by the finance minister Hakim Ben Hammouda, the law includes, among different actions, that the offshore companies operating in Tunisia will be able to allocate 50% of their production to the sale in local markets, limit previously of the 30%. Moreover, investments will be encouraged with the reduction of taxes for new industries and with the revision of VAT to 6% for imported machineries.

Foreign investment will save Tunisia, and the government knows it, as the economic provisions show. Funds from the EU, that in 2014 has invested around 201 million euro in its economy and territory, will help the country too. Ten more million have been recently donated through subsidies, such as helping small agricultural entrepreneurships that will absorb five of these. Two will be invested in the management of a program for agricultural development, and the remaining three will reinforce an already existing program that works in the Medenine governorship, still with an agricultural and environmental aim.

In 2015, the International Monetary Fund predicts a growth of 3%, a decrease in the level of inflation, especially thanks to the recent fiscal reforms that the government is implementing, and a deficit decrease from 7.9 to 6.6% of GDP. The forecasts are therefore positive, and this will not only have consequences for the economy, which will definitely grow, but it should bring political and social stability. The stabilization and growth of the country is nonetheless threatened by the tensions in the Maghreb region and in the Middle East, and in particular by what is going to happen in Libya. Only a direct response of the Govern to social problems as youth unemployment and gender inequality present in the country will make Tunisia the very first success of the Arab Spring.

SOURCES:
- Euronews.com
- Lastampa.it
- Ifm.org
- Ansamed.info
- Africaneconomicoutlook.org

Tunisia Jasmine Revolution

30 May 2014 Expert

TUNISIA JASMINE REVOLUTION

Tunisia Rivoluzione Gelsomini

Author: Elisa Mariani
Translated by Martina Paoli
August 2016

THE JASMINE REVOLUTION IN TUNISIA: FIVE YEARS LATER

Five years after the Jasmine Revolution, Tunisia still has to face many challenges. Governed by Bèji Caïd Essebsi, it is considered as a successful leading example, which inspired the Arab Spring, thanks to the remarkable changes adopted by the new social democratic government.

The Zine El Abidine Ben Ali absolutism overthrow has been strongly endorsed by population, especially young people, protesting for different reasons (poverty, regional discrepancy, unemployment, dictatorship) and has resulted in the draft of a new progressive constitution.

It focuses on the restoration of some of the most important human rights, including freedom of religion, speech, conscience, strike, and gender equality between men and women concerning the attribution of institutional offices and issues related to inheritance.

Nevertheless, the current government has not fulfilled its promises, since there has not occurred a real economic development after this social-political progress. For this reason, today as five years ago, citizens of Tunisia take to the streets to request new economic reforms.

The most worrying indicator is the unemployment rate, which stood at 15.4% in April 2016, against a 13% measured between October 2010 and January 2011. Therefore, a 2.4% more in comparison with the period in which there were the first signs of the Jasmine Revolution. These data are even more alarming if we consider that the 55% of Tunisians are under 25 years of age.

However, at the beginning of 2016 the Tunisian Solidarity Bank approved many loan applications and projects, which will permit creating more than 14,720 jobs. Moreover, according to recent estimates, currently the GDP amounts to 44.6 billion US dollars, against 47.3 estimated in 2014 and 45.2 of 2015, underlining a clear decrease.

Another significant parameter is the increase in the public debt, from 24.6 billion US dollars in 2012 to 28.4 billion US dollars in 2016. The companies’ competitiveness index is 3.93% in 2016, against 4.49% of 2010.

A modest improvement relating to the ease of doing business index took place in 2015 (74), with respect to 2014 (75). The lowest Tunisian value was estimated in 2010 (40). There has been an increase in the private consumption, from +3.7 in 2013 to +4.4 in 2016.

Because of the decrease in the main economic indexes, the government of Tunisia is working to realise the Development Plan 2016-2020. This strategy includes a number of reforms aimed at creating additional jobs and intensifying the struggle against poverty.

In fact, economic interventions relating to urban infrastructures and incentives for industry and green economy are expected to be done. They require an investment of 50 billion euro, which is possible thanks to the exploitation of local resources and the private contributions. The final aim of this policy is to reach an increase of 4% in the annual GDP.

The most profitable sectors of the country are service industry and manufacturing, which represent a large part of GDP (respectively 61.2% and 29% of the GDP, according to 2015 estimates). Tunisia boasts a great exportation of agricultural products.

Tourism gives a wide contribution in the job creation and is a fundamental activity for the economic welfare of the country. Regarding the commercial relations with foreign countries, Italy plays a very important role, as it is one of the principal Tunisian allies. In 2015, Italy’s export to Tunisia amounted to €3,033 million, while import from Tunisia amounted to €2,300 million.

Sources:

- cia.gov (Central Intelligence Agency US)
- infomercatiesteri.it
- tradingeconomics.com
- lookoutnews.it
- schedeflash.it
- esteri.it
- huffingtonpost.it