Privatization in Tunisia began in the late 1980s, and has been pursued without interruption since then. In 1987, Tunisia introduced a series of reforms towards becoming a market-based economy. The privatization program was launched in 1989. Tunisia's privatization program is being implemented through the transfer of assets, the sale of shares, public tenders and concessions. Foreign investment has contributed 67 percent of the transfers. The privatization program offers wide opportunities for foreign investors in a variety of sectors, especially those related to improvements in infrastructure. Completion of the privatization program is expected in 2001.

The privatization program was launched in 1989 with the promulgation of Law #89-9, which set the general framework for public enterprise restructuring and privatization. In 1994, Law #94-102 was passed, which allowed the Government to sell blocks of shares through a tender process on the Bourse, and to create a "golden share" (action spécifique) for particularly sensitive privatization operations. The 1989 Law was further modified by Law #96-74 and Law #99-38.

The Ministry of Economic Development (MED) (formerly the Ministry of Planning) has day-to-day responsibility for managing the privatization program. In accordance with the July 1996 Decrees 96-1225 and –1226, MED and its responsibilities have been expanded. MED is now also responsible for controlling the management of Public Enterprises (PEs) and the state portfolio of investments, local public collectives and other public establishments. The MED proposes restructuring, reform and privatization programs for these enterprises and establishments, where appropriate.

Within MED there are two general directorates to handle these responsibilities:

1. The General Directorate of Participations and Public Enterprises (DGPEP), charged with oversight of the management and performance of PEs and other State share holdings. The DGPEP is in charge of management and control of the on-going public investments and PEs. This work was previously done by the Ministry of Finance and the Prime Minister’s office. Selected staff, who have been involved in handling state participations in enterprises, will be transferred to the DGPEP to continue their work.
2. The General Directorate of Privatisation (DGP, or, Direction Generale de la Privatisation), which elaborates and implements the strategy for restructuring and privatization of public enterprises.

In addition, the following organizations are also involved in privatization and restructuring:

• Commission d'Assainissement et de Restructuration des Entrerprises a Participations Publiques (CAREPP): Headed by the Prime Minister, CAREEP's role is to decide on all issues relating to the restructuring of public enterprises.
• Comite Technique de Privatisation: Created in 1997, its role is to review all technical aspects of files submitted to CAREPP.
• Fonds de Restructuration des Entreprises Publiques: Its role is to cover some of the costs associated with enterprise restructuring, including severance payments.

Privatization in Tunisia has picked up pace over the past three years. As of the end of December 2000, 140 companies had been included in the privatization program, of which about half had been fully privatized and about 25 percent liquidated. Foreign investors have already bought 67 percent of the assets in Tunisia's privatization program. Foreign investors have been predominently involved in privatization transactions in the construction, commerce and tourism sectors. The sales of cement plants are the largest privatization transactions to date, representing more than 50 percent of the total proceeds.

The Government's attempt to balance its restructuring of the public sector with its policy of maximizing employment has sometimes led to results that fall short of full privatization. The 1995 privatization of Tunis Air, for example, entailed the sale of only 20 percent of the general shares, more than half of which were purchased by company employees or state-owned banks.

Although Tunisia’s privatization program has suffered from delays, the outlook for privatization in Tunisia is positive. A new privatization drive involving 41 public enterprises has been announced for 2001. It will, however, take beyond 2001 to complete the program.

Tunisia speeds up its privatization program, Washington Times, July 10-14, 2000; Tunisia: Enters a New Phase; IMF Concludes Article IV Consultation with Tunisia.