Thirty Years On, Tunisia’s Industrial Upgrading Program Has Transformed the Nation’s Economic Landscape

Launched in 1995, the Industrial Upgrading Program (Programme de Mise à Niveau Industrielle, or PMN) has emerged as one of the key drivers behind Tunisia’s economic transformation.

Three decades after its inception, the program boasts a remarkable track record: over 14 billion dinars invested in 5,000 projects, according to figures announced on Friday, July 5, by Fatma Thabet Chiboub, Minister of Industry, Mines, and Energy.

Speaking at the conference “30 Years of Upgrading: Charting a Course Toward the Industry of Tomorrow” held in Tunis, the minister outlined the dramatic evolution of the country’s industrial fabric since the program’s launch. In 1995, Tunisia counted barely 2,000 industrial companies, with industrial exports under 4 billion dinars and a sector contributing less than 15% to GDP.

In 2024, the landscape has changed considerably:

• 5,000 industrial enterprises, including 1,700 fully export-oriented

• A contribution to GDP exceeding 20%

• Industrial exports reaching 50 billion dinars

• An annual growth rate of over 7% sustained over two decades

• More than 550,000 direct jobs—nearly three times the 1995 total

Growth Sectors and Uneven Regional Development

The minister noted that over 60% of investments have been concentrated in the mechanical, electrical, textile, and apparel sectors, accompanied by the emergence of new industrial zones across all regions. Nonetheless, regional disparities persist. According to the data presented:

• 63% of investments are concentrated in just six governorates:

  • Ben Arous (16%)

  • Nabeul (13%)

  • Monastir (12%)

  • Sfax and Sousse (11% each)

This imbalance underscores the enduring geographical divide, with the country’s interior still struggling to attract a fair share of industrial investment.

Improved Business Climate, But Gaps Remain

Among the PMN’s most notable achievements, Minister Chiboub highlighted:

• The development of quality infrastructure

• Certification of compliance for more than 800 companies

• The integration of Tunisian firms into global value chains

• Support for exports and industrial specialization

She called for a renewed vision of the program—one aligned with today’s priorities, including digitalization, renewable energy, the circular economy, and global competitiveness.

A Call to Revitalize Public-Private Dialogue

Samir Majoul, President of UTICA (the Tunisian Confederation of Industry, Trade and Handicrafts), praised the PMN as a successful example of public-private partnership. He nonetheless warned of mounting threats to industrial competitiveness:

• Rising production costs

• Regional and international competitive pressure

• Regulatory and logistical barriers

• Limited access to financing and innovation

He called for a new generation of the program, focused on Industry 4.0, green and blue economies, the circular model, and the integration of youth and startups. For Majoul, rebuilding trust between the state and industrial stakeholders is now a top priority—particularly through a renewed, reform-oriented framework for dialogue.

Toward a Modern, Inclusive, and Sustainable Industry

Three decades after its launch, the Industrial Upgrading Program has undeniably strengthened Tunisia’s economic competitiveness and resilience.

Yet today’s technological, environmental, and social challenges demand a strategic update to this historic tool.

The ambition now clearly outlined by authorities: to build a modern, inclusive, and sustainable Tunisian industry—one capable of competing and thriving within global value chains.