Tunisia: PM, better business climate, stronger impetus to entrepreneurship priorities of gov't [Upd 1]

  • 27 January 2021 / News / 73 / Nessrine

Tunisia:  PM, better business climate, stronger impetus to entrepreneurship priorities of gov't [Upd 1]

A better business climate and stronger impetus to entrepreneurship are among the priorities which the government set for this year, said Premier Hichem Mechichi.

Liberaling the national economy from legislative and regulatory burdens will help unleash initiatives that create wealth and boost investment, he further told MPs at a plenary convened to vote confidence in 11 new nominees put forward as part of a recent cabinet reshuffle.

The government will seek in H1 of 2021 to review authorisations and address obstacles which businesses encounter. The latter will be afforded access to a package of financial and fiscal incentives, especially by bringing down the self-financing ratio required to qualify for them, in a bid to encourage youth in particular to generate wealth and foster entrepreneurship.

The government has a clear strategic vision to overhaul the development model with the aim to putting the country on the right track and creating wealth by open Tunisian youth who keep abreast of digital technology advances.

"We have the firm conviction we cannot build a new economy while using old tools. There is need to give a boost to promising sectors and preserve gains and experiences in others. "

The development vision needs to be translated first in the different segments of the digital field insofar as the latter has become fundamental to achieving economic and social development and creating jobs.

The government is forging ahead with the national strategy Digital Tunisia as a thrust of the development process and an efficient mechanism for adequate crisis management. Digitisation helped find solutions in a record time to ensure the continuous provision of public services. amid the outbreak of the COVID-19.

A participatory aproach was adopted, one that involves the various private and public sector actors in the digital field and civil society, to work out a national strategy of digital transition (2021-2025). The strategy is designed to bring the contribution of technology to the GDP from 4.3% in 2019 to 6% by late 2025, in addition to improving the added value of marketing.

Energy transition is the cornerstone of the new economy as it is the pillar of sustainable development, economic and social progress and environment protection, Mechichi highlighted.

He said, in this vein, investing in power generation projects from renewables scheduled over the next three years will help reboot the national economy. Energy independence will also be restored, especially by means of raising to 30% the rate of renewable energies in the production of electricity and cutting demand by 30% by 2030.

The government intends to bolster agriculture and remove different obstacles. This is possible through adequate governance, increased competitive edge in local and international markets, a better investment climate, use of advanced technologies and increased professional membership to boost farmers' investment and production capacities and improve their living standard.

The next stage requires more than ever before to set the reform process in motion in the public sector and public facilities in a bid to upgrade services. Public facilities need to serve the public and be a tool for facilitation not complication.

The government - fully aware as it is of lost opportunities as a result of the lack of boldness in administrative reform and measures that only caused the crisis to deepen and scrapped the spirit of initiative among staff members - will endeavour to address real issues by means of increasing digitsation and doing away with red tape. The amount of red tape imposed will be cut by 80% by late 2021

There is no room for further delay in looking into the situation of public enterprises, the Premier said. Reform is called for and an overhaul of governance is a priority. There are no red lines.

The government will embark on reform while taking into consideration the situation of each enterprise and involving national organisations, mainly the Tunisian General Labour Union, as part of a responsible and constructive dialogue.

Reform will help alleviate the burden of public enterprises on the State budget. An agency in charge of these enterprises, the review of their governance and their management will be created with a view to seeing them reassert their strategic role in underpining State efforts and consolidating the national economy, in line with the principles of good governance, added value and wealth creation.

In another connection, Mechichi said the rationalisation of the subsidisation system will be an additional priority. The scheme be geared towards its recipients as part of a social policy that rests on equity and a higher purchasing power.

"By year end, we will have secured transition from the subsidisation of products to the consolidation of incomes. This will reduce poverty by nearly 25%," he added. Reviewing the system will help address smuggling and the use of subsidised products for other purposes. Wastage will also be avoided

Efforts to achieve the financial inclusion of unbanked populations to improve their living conditions will continue, in partnership with the Central Bank of Tunisia, the PM highlighted.

E-inclusion is an additional target that can be reached by means of upgrading basic infrastructure and providing widespread broadband internet access while offering incentives to Tunisians to join the system of financial services and electronic payment.

source: TAP.tn