Tunisia’s Kais Saied regime has been hit with the decision of Swiss electronics company to withdraw from this country and concentrate its North Africa production operations in Morocco.
Cicor says it is divesting its Tunisia facility and launching an efficiency program expected to deliver more than CHF 10 million in recurring annual EBITDA improvements, as the Swiss group consolidates capacity after several acquisitions.
The Tunisia plant, which employs around 90 people, is being sold for approximately €1.3 million plus adjustments, while customer relationships will remain with Cicor.
The group’s North African production will be concentrated at the company’s Moroccan sites in Berrechid and Temara near Casablanca, where the former Éolane and Valtronic operations will also be folded into the existing footprint.
Several international companies withdrew from Tunisia after President Kais Saied seized nearly all executive powers in 2021 exacerbating political uncertainty, making investors wary about unpredictable decision making and weaker institutional checks, increasing investment risks.
The other factors behind foreign divestment include weak judicial independence & rule of law, economic instability, high public debt, inflation, currency pressure, slow growth, mounting social tension, recurrent strikes and stalled IMF negotiations.
All these combined factors undermine the investors confidence, pushing them to relocate to their other attractive countries offering political stability, business friendly climate, tax incentives and competitive export industrial ecosystems.