Check reform: major changes for slow-rolling benefits
Tunisia's check system reform has significantly altered payment behaviors, impacting consumption and inflation.
The changes came after repeated complaints from SMEs about unpaid checks, as highlighted by Yassine Gouiaa, then-head of the National Organization of Entrepreneurs, in October 2021.
By November 2021, Sofiane Gabsi, Secretary-General of the National Association of Small and Medium Enterprises (ANPME), even called for abolishing prison sentences for SME owners in cases of 'bounced checks.'
In February 2025, a new law overhauling Tunisia's check system took effect, disrupting financial and economic norms long accustomed to checks as a primary payment and business tool.
Spearheaded by the presidency, the reform introduced new rules, some still unenforceable and practices that clashed with both entrepreneurial culture and existing infrastructure.
Overall, the reform was not implemented smoothly, as it is still being discussed and there is no consensus on its consequences.
Firstly, the amount of circulating banknotes and cash reached nearly 25 billion Tunisian dinars in June, while the check law aimed to boost the digitization of local commercial transactions.
By 28 May 2025, the value of circulating banknotes and coins had risen by 3 billion Tunisian dinars compared to the same period in 2024. This was officially attributed to the Eid al-Adha festivities, despite the fact that purchases, particularly of sheep, had not yet begun, given that prices had already skyrocketed to unprecedented heights.
72% of checks were used as collateral before reform and 74% of people reported difficulties afterwards
Before the reform, 72% of checks were used for deferred payment or as collateral. One-third of consumers consider checks to be a means of deferred payment. Even among those with incomes above TND 5,000, 66% use them for installment payments.
The IACE study, based on a survey, asserts that 47% of respondents encountered payment difficulties after the reform.
29% of respondents either gave up or postponed a purchase, often exceeding TND 1,500 D. The reform has had a particularly significant impact on the middle classes (earning TND 1,000–TND 3,000).
According to INS data, the survey results indicate a decline in consumer purchasing intentions, particularly for goods sensitive to the use of checks. This could partly explain the 0.87% decline in the added value of the trade sector between Q4 2024 (2,857 MD) and Q1 2025 (2,832 MD).
'If you have cash, everything is free!'
According to the IACE survey, the preferred payment methods of Tunisians after the new regulations came into force are cash (47%), followed by bank transfers and bills of exchange (16% each).
Only 7% of respondents use the new check. Direct debit is almost non-existent (0.4%), despite being available at Tunisian banks, particularly for housing loans and loans for civil servants.
According to the IACE survey results, 29% of consumers have given up on purchases, affecting essential goods. 78% of postponed purchases exceed TND 1,500, indicating a significant economic impact. This decline in purchase intent could explain the 0.87% decrease in the added value of the commerce sector.
Looking ahead, 58% of respondents prefer mobile payments. 34% want deferred debit cards. Only 2% want to return to the old check system.
Meriem Ben Nasser offers another perspective on the future, asserting that there are a few quick and effective alternatives to checks.
In a LinkedIn post, she mentions BNPL (Buy Now, Pay Later), a digital solution integrated into the point of sale which enables customers to purchase items on credit with just a few clicks, without any paperwork.
Other alternatives include instant digital microcredit backed by simplified scoring via mobile or payment history, pre-authorized payment cards with integrated payment facilities and mobile split payments via QR code.
According to the expert, it is urgent that retailers and consumers are trained, the user experience is simplified, and local, inclusive and interoperable solutions are created.
IACE conclusion: The law on checks needs to be reviewed.
A survey conducted by the IACE one month after the new check regulations came into force reveals a rapid but mixed transition in payment habits. While the majority of consumers seem to be adapting by using alternative solutions, some members of the population are struggling to adapt, showing signs of temporary economic disengagement and indicating a risk of financial exclusion.
In this context, it is essential to review the regulations governing alternative means of payment, taking into account technological developments and international standards.
For instance, the European Union has enacted legislation that makes immediate transfers mandatory at the same cost as standard transfers. This system offers a reliable and modern alternative to cash or check payments.
It is crucial to emphasize that any reform must be accompanied by digital inclusion measures, targeted educational campaigns, and appropriate transitional arrangements, in order to ensure equitable adoption and prevent vulnerable groups from being excluded.
Furthermore, changes in usage must be continuously monitored in order to assess the medium- and long-term effects of this regulatory transformation on the economy and society.
*Analysis note from the Arab Institute of Business Managers (IACE).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
African Manager
6 days ago
- African Manager
Fitch Ratings affirms Tunis Re rating at ‘AA(tun)'; outlook stable
Fitch Ratings has affirmed Societe Tunisienne de Reassurance's (Tunis Re) National Insurer Financial Strength (National IFS) Rating at 'AA(tun)'. The Outlook is Stable. The ratings agency affirmed that Tunis Re maintains its position as the undisputed leader in Tunisia's reinsurance market. This strong domestic presence, combined with a well-diversified business portfolio, forms the cornerstone of the company's financial stability. The report highlights Tunis Re's capitalization as adequate, according to the Prism Global model (excluding the U.S.), driven by its large capital base and low net exposure to catastrophe risk, which is offset by high asset risk. In terms of performance, Tunis Re posted a robust net combined ratio of 92.7% in 2023 and a Return on Equity (ROE) of 7.7%, reflecting disciplined underwriting practices, even with the one-off impact from the February 2023 earthquake in Turkey. Fitch further points to the company's resilience, noting that over half of gross written premiums originate from foreign markets, many of which are more highly rated than Tunisia, bolstering financial strength. On the risk management front, Tunis Re employs a proactive reinsurance strategy with a solid retrocession program backed by highly rated partners, offering effective protection against large-scale claims. However, Fitch also flags a key vulnerability: a high concentration of investments in Tunisian dinar-denominated assets, with no currency hedging in place. This could weigh on the company's rating in the event of significant exchange rate volatility. Looking ahead, Fitch identifies two potential drivers for an upgrade: greater asset diversification outside Tunisia to reduce exposure to the domestic market, and an increased share of high-quality international business to enhance the company's overall risk profile.
African Manager
6 days ago
- African Manager
Tunisia: Current legislation does not promote tax justice (Dhaouadi)
Current legislation does not promote tax justice or equality between Tunisians and foreigners operating in Tunisia who evade tax or make 'false declarations,' Lassâad Dhaouadi, president of the Tunisian Institute of Tax Advisors told Mosaique FM on Monday. He emphasized that the state does not even know how many taxpayers there are, demonstrating its inability to control public finances. Dhouadi also said that attempts to integrate people working in the black market into the formal sector are misguided. 'How can we help those who illegally bring goods across the border and sell carcinogenic products integrate into the formal sector?' he asked. Dhaouadi also pointed out that tax justice requires the application of the law, rather than increasing he tax burden on companies that honor their tax commitments. He pointed out that the 'tax pass' is the solution to identifying those subject to tax and tracking their activities.
African Manager
14-06-2025
- African Manager
Deregulated pricing for electric vehicle charging in Tunisia!
Tunisia aims to reach 50,000 electric vehicles (EVs), 5,000 charging stations and 50MW of installed power by 2030, up from just 500 EVs, 500 charging points, and 5MW by 2025. To support this transition, the 2024 Finance Law reduces VAT on EVs from 19% to 7%, cuts registration fees by 50%, and halves the annual road tax (vignette). Fethi Hanchi, Director-General of the National Agency for Energy Management (ANME) affirmed that EV charging prices will be deregulated, meaning the government will not impose fixed rates. In an interview with AfricanManager, Hanchi explained that charging station installation costs vary by capacity and power type. For instance a a 100kW fast charger costs 400,000 dinars, while a 22kW standard charger costs under 20,000 dinars. He emphasized that the state is implementing measures to boost EV adoption and accelerate the energy transition. 70 state-owned companies switch to EVs ANME has been tasked with procuring EVs for 70 state-owned companies, funded by their own budgets with support from the Energy Transition Fund. Each vehicle will cost around 75,000 dinars and a tender will be launched soon. New technical specifications finalized On another hand, he stated that a new regulatory framework for charging stations is in its final stages, developed in collaboration with industry stakeholders. This will allow entrepreneurs and businesses to invest in charging infrastructure. Hanchi added that gas stations will also be permitted to install EV chargers under revised regulations to be published soon. Moreover, following discussions between the Ministry of Trade and the **Ministry of Industry and Energy, EVs have been excluded from import quotas; with a dedicated quota system to help dealers better assess market demand. Survey: 20% of Tunisians considering EVs A survey by **Emrhod Consulting** revealed that '20% of Tunisians are willing to buy an EV in the near future. It also revealed that nearly 29% plan to purchase a car (new or used) in 2025. The survey among a representative sample of the Tunisian population was conducted to gauge their perceptions of and expectations for the sector. The results revealed that 47% of respondents would opt for a combustion engine, 17% for a plug-in hybrid vehicle, and 14% for an electric vehicle. According to this survey, purchase price is the main factor influencing vehicle choice, at 49%. This is followed by fuel consumption (47%), aesthetics and design (33%), the availability of spare parts (32%), and maintenance costs (31%). In terms of preferred body types, saloons remain the most popular choice (45%), followed by sports utility vehicles (31%) and compact city cars (15%). The survey also found that 80% of respondents take maintenance costs into account when purchasing a vehicle. Finally, 75% of those surveyed said that the country of origin of the vehicle was important to them (40% considered this criterion very important and 35% considered it fairly important). New measures to encourage electric mobility by 2030 Secretary of State to the Minister of Industry, Mines and Energy in charge of Energy Transition, Wael Chouchane, stressed that regulatory, pricing, technical, institutional and economic measures have been developed to promote electric cars in Tunisia. He confirmed that, at a regulatory level, the decision had been made to consider the charging of electric vehicle batteries as a 'service' for which electricity is one of the various inputs. He said that a draft decree had been prepared to this effect, enabling all aspects of the recharging service to be organized in accordance with a set of specifications. Regarding the regulatory framework, Chouchane said that the standard relating to the nomenclature of Tunisian activities had been updated to include the recharging of electric vehicle batteries, and that a decree updating the NT120 standard was currently being adopted. He also announced that the Department of Industry is developing a national electric mobility strategy to promote improved energy performance in the transport sector and reduce its carbon footprint. This strategy will define clear objectives regarding the number of electric cars and charging points in line with the national energy transition, ecological transition and low-carbon development strategies. He pointed out that the transport sector in Tunisia is the biggest consumer of energy, accounting for around one-third of final energy consumption and over 50% of petroleum product consumption.
