Public Enterprises in Tunisia

Abstract

Public enterprises have played a central role in Tunisia's economy since independence, particularly in the energy, water, transport, telecommunications, banking, and extractive sectors. This study examines public enterprise reform in Tunisia from an economic perspective, focusing on evidence rather than ideology. It first reviews the origins and objectives of Tunisia's public enterprise model. It then analyses the financial and operational performance of eleven public enterprises across different sectors. Finally, it compares Tunisia's experience with those of France, Morocco, Italy, and Norway, while drawing on the broader economic literature and reform experiences from Eastern Europe, Chile, the United Kingdom, and Italy.

The paper offers a financial and operational diagnosis of the Société Tunisienne de l'Électricité et du Gaz (STEG), the Société Nationale d'Exploitation et de Distribution des Eaux (SONEDE), the Office National de l'Assainissement (ONAS), the Société Tunisienne des Industries de Raffinage (STIR), the Société Nationale de Distribution des Pétroles ("Agil"), Tunisair, the Société Nationale des Chemins de Fer Tunisiens (SNCFT), the Société Tunisienne de Navigation (CTN), the Compagnie des Phosphates de Gafsa (CPG), and the Groupe Chimique Tunisien, drawing on the Ministry of Finance's report on public enterprises, on World Bank analyses, and on investigative journalism. The findings show that the aggregate net losses of loss-making enterprises reached approximately TND 4.27 billion in 2022 alone, driven principally by administered prices that fail to cover real costs, delayed investment, and weak governance independence, rather than by weak demand.

The paper concludes that the debate should move beyond the traditional dichotomy between "privatization" and "retaining public ownership," toward a sector-by-sector assessment grounded in economic evidence and international comparison, aimed at identifying the reform option best suited to the Tunisian context, whether restructuring, strengthening competition, public–private partnership, or privatization.