Why Tunisia remains a strategic platform for European companies

In 2026, as supply chains are reorganised and many European companies look to bring production, services and decision-making closer to their markets, Tunisia holds a distinctive position. It is an immediate neighbour of the European Union, tied to it by a long-standing association agreement, and already deeply woven into its economic fabric. For a European business owner, investor or group, the question is therefore no longer whether Tunisia is a relevant partner, but why it remains one, in which sectors, with what funding available and what legal precautions. This article brings together the main figures on trade and investment between the European Union and Tunisia in 2025 and 2026, the major financing announced during the year, a sector-by-sector reading and a legal checklist for companies considering establishing or expanding their activity in Tunisia. 1. A trade partnership of exceptional density The European Union is by far Tunisia's leading economic partner. In 2025: - the European Union accounts for 59.5% of Tunisia's foreign trade; - 73.2% of Tunisian exports go to the European Union; - 49.6% of Tunisian imports come from the European Union; - trade in goods between the two sides amounts to approximately EUR 26 billion. These figures reveal a double reality. On the one hand, the Tunisian economy is very largely oriented towards the European market, which absorbs nearly three quarters of its exports. On the other, Tunisia is itself a significant customer and supplier for European companies, which sell it almost half of what it imports. For a European company, this integration means proven logistics routes, customers and suppliers already familiar with the European contractual framework, and a long habit of working with partners from the Union. 2. The 1998 association agreement: a stable legal foundation This integration rests on a long-standing legal foundation. The association agreement between Tunisia and the European Union, signed in 1995 and in force since 1998, opened the way to a free trade area for industrial products and established a lasting framework for economic, political and commercial dialogue. For businesses, the value of this agreement is concrete: it provides a predictable framework for trade in industrial products, rules of origin that operators know well and a structured institutional relationship between the two parties. Twenty-seven years after its entry into force, it remains the legal reference for the bilateral economic relationship. 3. European investment: a deep presence that creates jobs Foreign direct investment in Tunisia remains overwhelmingly European: - the European Union holds approximately 85% of the stock of foreign direct investment in Tunisia; - more than 3,400 European companies are established in the country; - these companies employ more than 400,000 people. These figures carry weight beyond statistics. They mean that a very large number of European companies have already chosen Tunisia, built teams, production sites and service centres there, and developed lasting relationships with the administration, banks and local partners. For a company that is still hesitating, this presence is a signal: there is track record to learn from, know-how has taken shape, and the host ecosystem (subcontractors, service providers, advisers, qualified human resources) is already in place. 4. Nearshoring: the case for proximity The nearshoring movement, that is, moving production and service capacity closer to consumer markets, is giving renewed importance to geographic, cultural and linguistic proximity. In this context, Tunisia offers several well-identified advantages: - geographic proximity to Europe, which shortens transport times and costs and makes it easier for teams to travel; - widespread use of French and, increasingly, English in the business world; - an industrial and services base already used to European standards and specifications; - available technical and engineering skills; - a preferential trade framework inherited from the association agreement. Nearshoring is not only a question of cost. It also answers a need for resilience: shortening supply chains, diversifying sources and keeping teams reachable and responsive in a nearby time zone. 5. What Europe buys from Tunisia In 2025, European Union imports from Tunisia reached approximately EUR 13.4 billion. Machinery and equipment account for about 44.5% of these imports. This point is essential: Tunisia is not merely a supplier of raw materials or basic goods. It has embedded itself in European industrial value chains, notably in components, electrical and mechanical equipment and industrial subcontracting. For a European manufacturer, this means it can rely on a production environment already familiar with its requirements for quality, lead times and traceability. 6. European financing announced in 2026 Alongside trade and private investment, 2026 has been marked by several funding announcements that confirm Europe's commitment to Tunisia. January 2026: European Union grants under Global Gateway In January 2026, the European Union announced EUR 35.8 million in grants under its Global Gateway strategy. This envelope is part of the European effort to support infrastructure, the energy transition and connectivity in Tunisia. Renewable energy: a 35% renewable electricity target for 2030 The energy component is one of the most structuring: - two solar projects with a total capacity of 400 MW are planned in Sidi Bouzid and Gafsa; - Tunisia aims for 35% of its electricity to come from renewable sources by 2030; - the ELMED project, the electricity interconnection between Tunisia and Italy, is intended to strengthen energy links between the two shores of the Mediterranean. For European companies, these projects open opportunities in engineering, construction, equipment supply, operation and maintenance, as well as in power purchase agreements and project finance. July 2026: the EIB and the SPE Growth Fund III In July 2026, the European Investment Bank (EIB) announced a commitment of approximately EUR 22 million in the EU Southern Neighbourhood SPE Growth Fund III, a private equity fund with a target size of approximately EUR 308 million. This type of vehicle supports the growth of small and medium-sized enterprises in the European Union's southern neighbourhood. June 2026: the EIB and Mediterrania Capital In June 2026, the EIB announced a commitment of EUR 70 million in Mediterrania Capital's EU Africa Catalyst fund. The fund targets growing companies in Africa and the Mediterranean and reflects European institutions' interest in equity financing for businesses in the region. Taken together, these announcements show that investment in Tunisia can draw on an active European public financing environment, in both grants and private equity. They are not an automatic entitlement, however: each scheme has its own eligibility criteria, intermediaries and conditions. 7. A sector-by-sector reading for European companies The table below is presented as a list and gives an indicative assessment of the sectors where the fit between Tunisia and European companies is most evident. It is a qualitative reading by ANILF, not an economic forecast: the real potential of a project always depends on its business model, location and legal framework. Mechanical, electrical industries and components - Finding: machinery and equipment represent about 44.5% of EU imports from Tunisia (approximately EUR 13.4 billion in total in 2025). - Advantage for European companies: industrial subcontracting, integration into value chains, proximity. - Points of attention: onshore/offshore regime, customs law, rules of origin, subcontracting agreements, labour law. Renewable energy and the energy transition - Finding: 400 MW of solar planned in Sidi Bouzid and Gafsa, a target of 35% renewable electricity by 2030, ELMED interconnection project. - Advantage for European companies: engineering, equipment, operation and maintenance, project finance. - Points of attention: concessions and authorisations, power purchase agreements, grid connection, environmental compliance. Services, digital and outsourcing - Finding: widespread use of French and a services base already oriented towards Europe. - Advantage for European companies: service centres, software development, customer support, back-office. - Points of attention: personal data protection, intellectual property, service agreements, regime for the export of services. Agriculture and agri-food - Finding: strong integration with European markets for food exports. - Advantage for European companies: sourcing, processing, supply-chain partnerships. - Points of attention: agricultural land regime, access to water, health standards, export conditions, supply-chain contracts. Private equity and SME growth - Finding: EIB commitments of EUR 22 million in the SPE Growth Fund III and EUR 70 million in Mediterrania Capital EU Africa Catalyst in 2026. - Advantage for European companies: access to financial partners, growth and succession transactions. - Points of attention: shareholders' agreements, due diligence, exit mechanisms, asset and liability warranties. 8. Legal checklist before establishing in Tunisia A successful establishment is above all a well-prepared one. Here are the main points to check: - Choice of structure: Tunisian-law company, branch, subsidiary, representative office, joint venture or holding company. The choice depends on the activity, financing, taxation and the level of control sought. - Investment regime: analysis of the framework applicable to foreign investment, any sector restrictions, the incentives available and the formalities to complete. - Onshore / offshore regime: choice of regime depending on whether the company serves the local market or export, with the customs, tax and foreign exchange consequences. - Authorisations and licences: many activities require prior authorisations, the conditions of which must be checked before any financial commitment. - Land and real estate: title deeds, leases, industrial premises, building permits, mortgages. - Commercial contracts: distribution, subcontracting, supply and service agreements, with particular attention to termination, exclusivity, governing law and dispute resolution clauses. - Labour and social law: employment contracts, status of executives and expatriates, social obligations, restructuring. - Taxation: corporate tax, VAT, withholding taxes, international tax treaties, tax planning within the law. - Customs and rules of origin: conditions for access to the preferential regime, proof of origin, suspensive customs regimes. - Intellectual property and data: trademarks, patents, software, know-how, personal data protection and cross-border transfers. - Foreign exchange and repatriation of funds: rules applicable to investments, dividends and flows with foreign countries. - Financing and security: loan agreements, security interests, shareholders' agreements, exit mechanisms, conditions for accessing public or institutional funding. - Acquisition of businesses: legal due diligence, share deal or asset deal, asset and liability warranties, conditions precedent. These needs vary by sector and project size. A mechanical manufacturer, a solar project developer, a service centre and an agri-food exporter do not face the same legal issues, and a tailored analysis is almost always necessary. 9. Key takeaways - The European Union accounts for 59.5% of Tunisia's foreign trade in 2025, with 73.2% of Tunisian exports and 49.6% of Tunisian imports. - Trade in goods between the two sides reaches approximately EUR 26 billion. - The European Union holds approximately 85% of the stock of foreign direct investment in Tunisia; more than 3,400 European companies are established there and employ more than 400,000 people. - The 1998 association agreement remains the legal foundation of the relationship, and nearshoring reinforces the appeal of proximity. - EU imports from Tunisia reach approximately EUR 13.4 billion in 2025, of which about 44.5% is machinery and equipment. - In 2026: EUR 35.8 million in EU grants (Global Gateway, January), 400 MW of solar in Sidi Bouzid and Gafsa, a 35% renewable electricity target for 2030, the ELMED project, approximately EUR 22 million from the EIB in the SPE Growth Fund III (approximately EUR 308 million, July) and EUR 70 million from the EIB in Mediterrania Capital EU Africa Catalyst (June). - A successful project requires legal, tax and customs structuring prepared in advance. 10. Establishing in Tunisia with ANILF's support For a European company, choosing Tunisia is an economic decision. Implementing it is a legal one. ANILF supports European and international companies and investors at every stage of their project in Tunisia. Our assistance can notably cover: - analysis of the legal framework applicable to your sector; - choice of structure and incorporation of the company; - investment regime, onshore / offshore regime and incentives; - authorisations, licences and regulatory compliance; - commercial, distribution and subcontracting agreements; - land, leases and real estate transactions; - labour law and the status of executives and expatriates; - investment taxation and tax treaties; - customs, rules of origin and foreign exchange operations; - intellectual property and data protection; - acquisitions, due diligence, shareholders' agreements and growth transactions. Are you considering establishing or expanding your business in Tunisia? Before committing funds, have the legal structure best suited to your activity, the authorisations required and the risks specific to your project analysed. Conclusion Tunisia remains a strategic platform for European companies because it combines what few neighbouring countries offer together: deep trade integration with the European Union, an association agreement stable since 1998, a massive European presence in investment and employment, an industrial base already embedded in European value chains and, in 2026, active European financial support, from renewable energy to SME growth. This favourable position does not remove the need for rigour. The success of an establishment depends on the quality of legal preparation: structure, applicable regime, authorisations, contracts, taxation, customs and financing. By securing these points before committing, European companies make full use of Tunisia's proximity. Note: the figures cited come from official and institutional sources and may be revised in later publications. This article is for general information only and does not constitute personalised legal, tax or investment advice. Sources - European Union: data on trade and investment relations between the European Union and Tunisia (2025); - European Union: communications on the Global Gateway strategy and the grants announced in January 2026; - European Investment Bank: June and July 2026 communications on Mediterrania Capital EU Africa Catalyst and the EU Southern Neighbourhood SPE Growth Fund III.