Interview with Mr Ridha Ben Mosbah

Tunisia draws its economic success of the clear-sighted strategy established by Head of State to reach a socioeconomic balance of our country through the diversification of the business sectors, the adoption of legal framework encouraging investment and facilitating the exports of goods and services, the better use of the human resources, the healthy budget management as well as through the institution of efficient state mechanisms of accompaniment.

Rich in time–honored tradition and international experience of over three decades, the textile and clothing industry sector in Tunisia has forged for itself a strong image and positive positioning on the international scene in most of the parameters set by the industry.

Thanks to its assets in terms of flexibility, reactivity, just-in-time delivery and respect for social and environmental standards and norms, the textile and clothing industry sector in Tunisia offers all-encompassing solutions and a new dynamic for win-win cooperation with partner countries.

With more than 2100 active companies among which 83% are totally exporting, first employer sector with 44% of the total jobs, a 3000 million euro average of exports annually (25.5 % of the total of the exports) and a flow of foreign investment of 20% of the total of the FDI in manufacturing industries, the textile and clothing sector occupies a strong and increasingly growing position within the Tunisia economy and strongly contribute to the economic success of our country.

The exports of the sector have nearly doubled during the last decade, increasing from 2,952 MTND in 1998 to 5,180 MTND in 2008. The clothing sector alone represents 88 percent of these exports: 65.5 percent of woven garments and 22.5 percent of knitted goods.

Clothing and textile exports represent 25.5 percent of total Tunisian exports. The European Union is by far the major destination for Tunisia’s goods, absorbing 96 percent of the sector’s exports. France, Italy, Germany and Great Britain take in 82 percent of Tunisian exports.

Tunisia is one of the leading suppliers of clothing in the world. It is fifth largest supplier in this sector to Europe and the EU’s second biggest supplier for swimwear and bras. Worldwide, Tunisia is ranked 2nd largest exporter of textiles in terms of per capita.

Technology and Industry are not the only areas in which Tunisia is seeking to improve the economic future for its people. The government is also investing in its cultural industries –cinematography, publishing, cultural heritage especially and handicrafts– as a means of contributing to the country’s sustainable development.

A government conducted economic study -“The National Strategy for the development of the handicraft sector by 2016”- showed that the handicraft sector had the potential to double its contribution to GDP and more than triple its contribution to exports by 2016. In pursuit of this goal, the government has implemented measures to revitalize the industry and breathe a new spirit of competition and creativity into Tunisian artisans.

Statistics indicate the sector employs 11% of workers, or the equivalent of 350,000 artisans, generating more than 10.000 job creations per year, contributing in that sense around 3.9% of GDP according to 2009 figures. Meanwhile, the sector’s exports are valued at more than 250 million dinars, or approximately 2.2% of total exports.

In recent years the Tunisian government has stepped up its promotion of traditional handicrafts, both in Tunisia and abroad, by participating in international forums. The Traditional Handicrafts Salon represents the most important specialised forum in the sector where we could meet almost 75 activities. Every year, it draws a large number of visitors – more than 130,000 according to official figures.

It’s worth noting that his excellence, the president of the republic of Tunisia, in his speech by the 11th of October 2009 insisted on the fact that we must restore the normal level of development, and achieving a faster pace of growth by promoting also handicrafts and the activities of employment, training and marketing in this sector by establishing a modern commercial pole that is open to innovation and creativity and enhances the value of our national cultural assets, labelled “The City of Handicrafts and Artistic Occupations” to serve as a large commercial center, and a pole for innovation, creativity, and the valorisations of national cultural assets. The president of the republic also recommended the establishment of “Handicrafts Villages” in all Governorates and devote a space for each traditional product that is specific to any one region which will give an impetus for the launching of new projects.

Moreover, Tunisia is one of a few countries in the world to have enacted a law to protect traditional handicrafts and related knowledge and anticipate in cooperation with the National Institute of Normalisation and Intellectual property to the implementation of a variety of IP tools, among them collective and certification marks and geographical indications. Indeed, the text on traditional cultural expressions drew upon Tunisia’s Law. Introduced in December 2007, Law 68 is designed to protect major local and national handicrafts such as carpets, pottery, traditional dress, silk products, mosaics and many other handmade products.

The government extended the 1999 law relating to appellations of origin, which currently only protects agricultural products, to cover the works of Tunisian artisans, such as Berber and Karoui carpets, Djerba pottery, ceramics... WIPO is also providing legislative advice to the national IP office, the National Institute of Normalisation and Intellectual Property (INNORPI) and to the artisans’ association, the National Office of Handicraft (ONA), to assist them in introducing a geographical indications law, which would offer more flexibility than the appellations of origin law for protecting handicrafts. Many new trademarks will also be created: The elegant Cage de Sidi Bousaid placed in front of homes in the Medina, the Porte Bleue de Tunis, the Chechia a Tunisian beret.... All hold meaning for Tunisia’s artisans and are instantly recognizable. Also, Villages de l’artisanat (handicraft villages) have been created to promote and commercialize the works of artisans and to protect and preserve Tunisia’s traditional knowledge and cultural heritage.

It is worth noting also that Tunisia is the first and only country which has benefited so far from a twinning agreement with European funding in the handicrafts sector which aims at modernizing Tunisia's handicrafts sector, improving exchanges and strengthening by the way the partnership with the EU in the investment and marketing sectors. This twinning program comes in fulfilment of the national orientations meant to step up economic, technical and cultural exchange with European countries, to promote and to improve the quality of local handicraft products, in compliance with international standards in force. The results of this program in the handicrafts sector between Tunisia, France and Spain, were presented recently on the sidelines of a seminar held in Tunis; the twinning program will provide large prospects to handicrafts products boosting quality and marketing, at home and abroad. The program is part of the National Handicrafts Board (ONA) strategy to boost the handicrafts sector.

The main exported products are jeans wear, trouser, knitwear, shirt, lingerie, work wear, jumpers & pullovers. These products were able to assert themselves as leaders on the international market and more specifically on the European market. Other activities are considered carrier for the future of the sector and on which we count for booster its performances as technical articles.

What we could say is that Tunisia’s textile and clothing sector is highly reactive and able to work on a tight schedule, which mean it is particularly well suited to deal with small and medium volume series, restocking and fast fashion.

The strategic orientations of the sector seek to reach both qualitative and quantitative objectives such us:

Developing restocking and positioning activities to handle small and medium size series.

Moving from subcontracting to co-manufacturing then production of finished products by 300 companies by 2016, compared to just 70 companies at this time

Developing finishing in order to increase the availability of materials for manufacturers, targeting coverage of 40% of needs by 2016 compared to 10% at this time.

Developing technical textiles and strengthening design.

Reinforcing the promotion plan and mastery of the distribution channels

Consolidating of the move to regional platforms by strengthening infrastructure and training.

Tunisia’s textile and clothing industries have involved steadily over the past 40 years. A major change in strategy was adopted early in the 2000s.

In order to improve outsourcing and promote Tunisian fashion, the textile branch is undergoing a process of integration by creating companies that do finishing work and that manufacture accessories as well as by developing service activities.

This new orientation seeks to promote vertical integration, shift to up-market ready-to-wear clothing, and produce small and medium size series.

Its ability to adapt has helped the textile and clothing sector position itself as one of the pillars of Tunisian industry.

The strength of the Tunisian Textile and clothing sector comes essentially from the capacity of the Tunisian companies to adapt themselves to the requirements of their partners at the levels of the know how, the ability to react, the flexibility, the quality of the product and the service while respecting the international standards of social and environmental ethics. The Government acts in the sense of the encouragement of companies to improve even more their performances of competitiveness by continuing to invest in the TCI, to increase the supervisory rate, to diversify the markets of exports and to turn to products with higher added value by being active in the co-manufactoring and the finished product.

The technical center of creation, innovation and supervision in carpet and weaving is created in February 14th, 2007. Its activities include the carpet and weaving sectors and all the activities related to them: manual weaving- manual spinning -traditional dyeing - ground sheet(carpet, klim, mergoum, grara, ktif,…) -tapestry wall – covering wool.

This center is created in order to enhance creation and innovation as well as preserving the originality and the national patrimony.

It supervises artisans and assists them in developing working methods, improving the quality of crude materials as well as diversifying their sources.

It enhances the use of national crude materials as well techniques which preserve environment and natural resources.

It assists new projects and supervises their execution during different steps.

It inventories national wealth consisting in crude materials liable to be used in handicraft sector.

It collects and analyses all information relative to sub sectors depending of their intervention field.

In fact, the Centre has realised 50 designs in carpet and weaving and has distributed them to artisans and handicraft establishments.

It organised some workshop in order to create new designs, modernize the methods of work, improve the techniques and promote the quality.

A liberal legal framework has helped foreign companies establish sound partnerships that have helped them develop their activity in Tunisia. More than 1000 Tunisian companies work in partnership with EU companies.

Over the period 2005-2008, investment in the textile and clothing sector grew by 27% and over the past five years, one fifth of all foreign direct investment to manufacturing industries went to the textile and clothing sector.

The presence of world-renowned companies like Benetton or Van Laack as well as co-contracting with major principals has contributed significantly to the success of the textile and clothing sector. This is an additional proof of how competitive Tunisia is in this sector. The presence of major brands also shows how active and able this sector is in offering fast and total reactivity to principals, purchasing structures, thus meeting constantly changing demand.

The legislative and regulatory framework in Tunisia provides real advantages for foreign investors: total freedom to invest and the possibility of holding 100% of capital, repatriation of dividends and of proceeds from the sale of capital, the right to foreign exchange for current transactions and the possibility of using bank accounts held abroad.

To encourage export of goods and services, incentives are available in the form of total exemption from duty and levies on imported equipment, raw materials and semi-finished goods, as well as total exemption from tax on profits for the first ten years of activity.

Furthermore, procedures for setting up a business have been greatly simplified, facilitated by the establishment of one-stop shops at which a company can be set up and administrative formalities carried out.

With its geo-strategic position in the heart of the Euro-Mediterranean logistic chain, near the main European cities and on the doorstep of a market of 500 million consumers, its modern infrastructure, and its high degree of know how and competitive costs, Tunisia offers a favourable investment environment as well as a preferential access to the main targeted markets through the several agreements signed with partner countries such as the free trade agreement signed with EU, the Agadir Agreement (Tunisia, Egypt, Jordan and Morocco) that went into effect in 2007, and the agreement signed with Turkey allowing a cumuli of the rules of origin and reinforces the competitive position of Tunisia.

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