Tunisia: Jalloul Ayed: "Only private investment can create jobs and boost growth"
3 June 2013
Read by 1565 persons
“The Tunisian state spends much more on compensation than on investment today,” lamented Jaloul Ayed, former Tunisian Minister of Finance, in his speech at the 4th Euromed-Capital Forum, Thursday and Friday, in Gammarth.
While indicating that to create jobs and meet this major challenge facing the country, which has 800,000 unemployed, the vice-president of the Euromed-Capital Association added that there is no solution other than promoting private investment. Because the state alone cannot create jobs and boost growth without the help of a strong private sector and new financing structures, including funds that invest with private developers. The role of the state, he added, must be rethought in the direction of more intelligence, even a driving and supporting state that "keeps a firm hand", but which "helps the citizen to help himself".
In Tunisia, micro-enterprises (very small businesses with 1 to 2 employees) represent 90% of businesses (approximately 327,000) and provide 33 to 43% of jobs. SMEs, for their part, represent 97% of the entrepreneurial fabric and employ 40% of the workforce, while the banking sector only grants 14% of credit to these SMEs, indicated Mr. Ayed.
“It's absurd!” he exclaimed. If the banking sector does not properly support these businesses, the state must act to put in place “intelligent” structures and a specific strategy, “which does not exist for micro-enterprises”, and initiate reforms, including in the micro-finance and micro-insurance sectors.
“These reforms could provide solutions and integrate micro-enterprises into the formal sector, protect them and preserve the rights of their employees,” he said.
I. B. (with Tap).
Kapitalis.com
Published on May 31, 2013.
Posted online on June 3, 2013.
While indicating that to create jobs and meet this major challenge facing the country, which has 800,000 unemployed, the vice-president of the Euromed-Capital Association added that there is no solution other than promoting private investment. Because the state alone cannot create jobs and boost growth without the help of a strong private sector and new financing structures, including funds that invest with private developers. The role of the state, he added, must be rethought in the direction of more intelligence, even a driving and supporting state that "keeps a firm hand", but which "helps the citizen to help himself".
In Tunisia, micro-enterprises (very small businesses with 1 to 2 employees) represent 90% of businesses (approximately 327,000) and provide 33 to 43% of jobs. SMEs, for their part, represent 97% of the entrepreneurial fabric and employ 40% of the workforce, while the banking sector only grants 14% of credit to these SMEs, indicated Mr. Ayed.
“It's absurd!” he exclaimed. If the banking sector does not properly support these businesses, the state must act to put in place “intelligent” structures and a specific strategy, “which does not exist for micro-enterprises”, and initiate reforms, including in the micro-finance and micro-insurance sectors.
“These reforms could provide solutions and integrate micro-enterprises into the formal sector, protect them and preserve the rights of their employees,” he said.
I. B. (with Tap).
Kapitalis.com
Published on May 31, 2013.
Posted online on June 3, 2013.
