Tunisian SMEs call on president to 'avoid extinction' of economic fabric

Tunisian small and medium-sized enterprises (SMEs) are sounding the alarm over a critical economic situation, urging President Kais Saied to intervene to prevent the "extinction" of the national economic fabric. The Tunisian Federation of Artisans and SMEs issued a statement on June 2, 2026, highlighting that businesses of all sizes are struggling with the lingering effects of the COVID-19 pandemic and the economic fallout from past attacks, particularly impacting the vital tourism sector.

The organization argues that existing public measures for debt rescheduling and tax relief are insufficient to address the mounting debts and the heavy tax and social burdens. Tunisia, according to the federation, faces some of the highest tax and social pressures in Africa, severely hindering the competitiveness of local businesses. This "degraded" economic environment is further exacerbated by what they describe as "unfair competition," fueled by smuggling and a parallel market.

Sectors like shoemaking are reportedly suffering, with illegal imports allegedly leading to the closure of hundreds of factories and the loss of thousands of jobs. The tourism industry is also affected by unregulated tourist accommodations operating outside tax and social obligations, undermining formal hotel structures. The federation contends that the circulation of smuggled goods is a major factor eroding the SME sector.

Furthermore, the federation criticizes legal actions against business leaders facing financial difficulties, suggesting that some proceedings do not adequately consider the real economic conditions of the companies. They warn that such practices could discourage entrepreneurship and further jeopardize job creation. The organization also objects to the seizure of production assets and bank accounts, and what they deem excessive fines in certain cases.

In response, the federation has put forth seven proposals for the presidency. These include halting the seizure of production tools, offering repayment schedules of up to 10 years for indebted companies, and significantly reducing tax and social penalties. They also call for intensified efforts against smuggling and the informal economy to protect established businesses, and the establishment of a joint council between administration and professional organizations to devise rescue solutions for struggling companies. Additionally, they request the cancellation of criminal proceedings against business leaders.