Since its launch in 2018, Tunisia’s Startup Act has officially certified 1,352 companies with its “LABEL” designation, providing a framework of benefits designed to foster innovation. The initiative, managed through the official Startup Tunisia portal, has spurred growth across key tech sectors, yet founders continue to face significant systemic hurdles.
Quick Facts
- 1,352 startups certified since 2018.
- Business Software leads sector distribution at 14%.
- A new “Startup Act 2.0” is in development.
Software and E-commerce Dominate the Tunisian Startup Scene
An analysis of the certified startups reveals a clear concentration in specific sectors. Business Software companies make up the largest group at 14%, followed closely by E-commerce startups at 11%.
HealthTech and EdTech are tied for third place, each representing 9% of the total. CreativeTech companies round out the top five with a 7% share. According to a source from Mosaique FM, all other specialized sectors individually account for less than 5% of the certified startups.
Tunisia Plans ‘Startup Act 2.0’ to Address Gaps
Despite the program’s progress, the Tunisian government acknowledges existing shortcomings. Sofiene Hemissi, Minister of Communication Technologies, confirmed that a more ambitious “Startup Act 2.0” is currently being developed in collaboration with several ministries.
Hemissi highlighted access to finance as a primary obstacle for Tunisian founders, noting that a lack of streamlined funding mechanisms stalls project development. The upcoming legislation aims to introduce improved financing solutions. The minister also stressed the need to cultivate an entrepreneurial mindset from a young age, suggesting that building startups should become a cultural norm before university graduation.
Navigating Bureaucracy and Market Hurdles
While the Startup Act offers an 8-year tax exemption and simplifies international currency transfers, founders report that the broader business environment remains challenging. Complex administrative procedures, poor coordination between government bodies, and ineffective support platforms create significant operational friction.
FinTech startups, in particular, are often subjected to financial requirements designed for large corporations, which are difficult for early-stage companies to meet.
Beyond administrative issues, market realities present further difficulties. The limited local market, coupled with customer reluctance to pay for innovative products, forces startups to compete with the informal economy. Payment delays on public sector contracts and weak collaboration between startups and established corporations further hinder growth, even when startups offer clear solutions to existing digital and service challenges.
About Startup Tunisia
Startup Tunisia is the official government-backed initiative responsible for implementing the country’s Startup Act. It manages the process for granting the “LABEL” designation to qualifying startups, which unlocks a series of legal, financial, and administrative benefits designed to support their growth and innovation within the Tunisian ecosystem.
Source: Mosaique FM
