Tunisia’s economy unravels as foreign investment dries up

Tunisia, once seen by the World Bank as a model for good governance, has become a pariah for international investors, according to Middle East Online. Ratings downgrades have given way to disappearance from global benchmarks like the World Bank’s Business Ready and EY’s Africa Attractiveness Report. Foreign direct investment into Tunisia now accounts for just 1.8% of North Africa’s inflows and under 0.06% globally.

Economist Hachemi Alaya describes Tunisia as a “black hole” for investment, with sluggish growth, rising inflation, and talent flight accelerating under President Kais Saied’s rule. Since 2019, Saied has returned Tunisia to one-man rule, choking the investment climate and sidelining reforms.

IMF forecasts show Tunisia’s 2025 growth lagging at 1.4%, compared with 4–8% across the region. Inflation is expected to hit 9.3% by 2030. Public investment is collapsing, debt is skewed short-term, and monetary policy now centres on printing money. With the Central Bank politically neutered and statistics increasingly opaque, Tunisia’s economic future looks grim.