The Central Bank of Tunisia (BCT) has called for accelerating projects and investments to revive private investment in the country. According to BCT Governor Fethi Zouhaier Nouri, the focus should shift from resilience to wealth creation. This appeal comes as several indicators show a concerning trend. The investment-to-GDP ratio remains low, and credit growth is slow, raising concerns about the country's economic prospects.
Data from the National Institute of Statistics (INS) shows that the gross fixed capital formation (GFCF) reached 26.4568 billion dinars in 2025, representing about 15.4% of the GDP, which was 171.6421 billion dinars at current prices. Although the GFCF grew by 5.2% in 2025, up from 0.9% in 2024, its share in the economy remains limited. This low investment level has prompted the BCT to sound the alarm.
The BCT's concerns are compounded by slow credit growth. In the first six months of 2026, credit activity increased by only 1.3%, largely due to weak lending to the private sector and individuals. The World Bank has also expressed concerns, noting that state financing has taken up a significant share of bank credit, rising to about a third of total credit in August 2025, up from 15% in 2019.
The World Bank's findings suggest a risk of crowding out private sector credit as public financing absorbs a growing share of banking resources. This trend could undermine the country's economic growth and job creation. The BCT's call for boosting private investment is seen as crucial to addressing these challenges and promoting sustainable economic growth.
To address these issues, the authorities need to create an enabling environment for private investment. This includes implementing policies to promote entrepreneurship, improving the business climate, and enhancing access to finance for private sector companies. The BCT's appeal is part of a broader effort to stimulate economic growth and job creation in Tunisia.
The stakes are high, as low investment levels can have long-term consequences for the country's economic prospects. Tunisia needs to attract more investment to boost its economic growth and create jobs. The BCT's warning highlights the need for urgent action to address these challenges and promote a more favorable business environment.
The situation requires a coordinated response from policymakers, regulators, and the private sector. By working together, they can identify solutions to boost private investment and promote sustainable economic growth. The goal is to create a more favorable business environment that encourages investment, innovation, and job creation.
Key points
- Total investment in Tunisia remains low, at around 15% of GDP.
- Credit growth in Tunisia is slow, with a 1.3% increase in the first six months of 2026.
- State financing has taken up a significant share of bank credit in Tunisia, posing a risk to private sector lending.
