Tunisian manufacturers of storage batteries are sounding the alarm over a proposed article in the 2027 finance bill that would exempt imported storage batteries from customs duties, value-added tax (VAT), and professional tax. According to Moncef Hajjam, an industrialist in the sector, this measure could severely impact local production and employment. Tunisia currently has five factories specializing in the manufacture of storage batteries.

The proposed exemptions, which are subject to a technical opinion from the Ministry of Industry, have sparked concerns among local manufacturers. Hajjam notes that in 2026, tax benefits granted on lithium imports helped reduce production costs for Tunisian manufacturers. He argues that the new exemptions would create an uneven playing field, favoring imported products over locally produced ones.

Local manufacturers currently import cells and assemble, test, and quality-control the batteries in Tunisia. They also produce several components, including casings and wiring. Hajjam emphasizes that Tunisian manufacturers offer warranties of up to five years, highlighting the quality of their products. He warns that if imported products are exempt from taxes, it could undermine investments and jobs in the sector.

Hajjam also questions the social impact of the proposed exemptions, pointing out that equipping a home with storage batteries can cost up to 15,000 dinars. He suggests that encouraging the installation of photovoltaic panels would be a more accessible priority. According to Hajjam, batteries are more suited to meeting the continuity needs of businesses rather than households.

The industrialist calls for the development of local electronic battery management systems to reduce imports. He urges Parliament to review Article 49 of the finance bill to ensure fair competition between Tunisian manufacturers and imports, without compromising the goals of the energy transition. Hajjam's concerns reflect the challenges faced by Tunisian manufacturers in a sector where costs and competition are significant.

The Tunisian government has set ambitious goals for the energy transition, and the storage battery sector is expected to play a crucial role. However, the proposed exemptions have raised concerns about the viability of local production. With five factories already operating in the sector, the stakes are high for Tunisian manufacturers. The government's decision on Article 49 will be closely watched by industry stakeholders.

As the debate on the 2027 finance bill continues, the Tunisian battery sector remains uncertain about its future. The proposed exemptions have sparked a necessary discussion about the balance between promoting imports and protecting local production. Ultimately, the decision will depend on the government's priorities and its commitment to supporting local industries while achieving its energy transition goals.

Key points

  • Five factories specialize in manufacturing storage batteries in Tunisia.
  • Proposed exemptions on imported storage batteries could undermine local production and employment.
  • Tunisian manufacturers offer warranties of up to five years on their products.

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SaharaWire Newsroom
SaharaWire

Reporting for SaharaWire from the Nairobi bureau.