Latest from African Manager
African Manager
3 days ago
- Business
- African Manager
Tunisia: Citibank Tunis (onshore branch) posts profit of 27 million dinars in 2024
At the close of the 2024 financial year, Citibank Tunis recorded banking operating income of 102.7 million dinars, up from 89.9 million dinars in 2023, an increase of 14%. This growth was driven by a combined rise in interest and similar income as well as commission income. Specifically, interest and similar income rose by 29%, fueled by a 24% increase in interest from transactions with banks and financial institutions, an 11% rise in interest from customer transactions and an 86% surge in income from placements with the Central Bank of Tunisia (BCT). Meanwhile, commission income grew by 5%, reaching 2.1 million dinars. However, gains on trading securities and financial operations remained nearly flat at 44.3 million dinars. On the expense side, banking operating expenses jumped 54%, from 25.4 million dinars at the end of 2023 to 39.1 million dinars by the end of 2024. As a result, net banking income for the year saw a slight decline of 1.5%, settling at 63.5 million dinars, compared to 64.5 million dinars in 2023. Bottom line: the bank posted a net profit of 27 million dinars in 2024, marking a 10.9% increase from the 24.4 million dinars reported in 2023.
African Manager
5 days ago
- Business
- African Manager
Tunisia purchases 100,000 tons of soft wheat
Tunisia's state grains agency is believed to have purchased about 100,000 metric tons of soft wheat to be sourced from optional origins in an international tender on Friday, European traders said. This was above the 75,000 tons requested in the tender. Two consignments of 25,000 tons each were sold by the trading house Grain Star, at an estimated cost and freight (c&f) price of $243.00 per ton. Another 25,000 tons were sold by Raya at $248.27 per ton C&F, and 25,000 tons by Buildcom at $243.77 per ton C&F. Reports reflect traders' assessments, and further price and volume estimates are possible. The tender requested shipment between July 1 and August 10, depending on the supplied origin.
African Manager
5 days ago
- Business
- 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
5 days ago
- Business
- 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
5 days ago
- Business
- African Manager
Law banning subcontracting faces many challenges
Tunisia recently passed a law regulating employment contracts and prohibiting labor sub-contracting in certain sectors. The law aims to combat job insecurity and ensure workers receive stable, permanent contracts. Former Employment Minister Hafedh Laâmouri acknowledged that several issues have emerged since the law's enactment but stressed that solutions are possible. In an interview with Express FM, he noted that most insurance companies lack formal employment contracts, as do businesses operating on shift schedules. He added that the law faces difficulties in security and cleaning sectors, where workers would become direct employees of the companies they serve, making replacements during absences more complicated. Laâmouri added that many companies struggle to interpret and apply the law, leading to a wave of layoffs. While no law can cover every scenario, he emphasized that adjustments are feasible. The minister stated that 'the law on work contract organization and sub-contracting bans attempts to balance worker protections with business interests, but it imposes significant costs on companies that previously benefited from sub-contracting.' The Subcontracting Ban Law, which came into force in May 2025, is a new law that regulates employment contracts and prohibits subcontracting. Its purpose is to strengthen labor relations and guarantee employees' rights. According to many experts, this law eliminates forms of subcontracting that are detrimental to workers and establishes a direct relationship between employees and the companies benefiting from their services. Furthermore, Hafedh Laâmouri believes that this law provides an opportunity to revise collective agreements in light of its provisions without contradicting them while considering the particularities of various sectors. On another note, he stated that the dismissal of several employees in the private sector could be explained by a misinterpretation of the law, with many employers fearing an increase in the wage bill. Laâmouri therefore ruled out the possibility of an increase in unemployment, which stood at 15.7% in the first quarter of 2025. Conversely, the expert predicts that this figure will decrease during the last quarter of 2025. This is because, in his view, employers will realize the need to guarantee job security for employees affected by the new law, who are in permanent employment. He also said that subcontracting companies operating in the security and cleaning services sectors have complied with the provisions of the new law to avoid penalties. Finally, he dismissed rumors that implementing regulations were already in place, stating that a circular would be published to guide labor inspectors in uniformly applying the law. It should be noted that on May 21, Parliament adopted a new law regulating employment contracts and limiting subcontracting. The law, known as the 'subcontracting ban law', imposes penalties, including potential prison sentences, on individuals who hire under sub-contracting agreements. It replaces fixed-term contracts with permanent contracts, though certain exceptions are permitted. The Tunisian General Labor Union (UGTT) has highlighted numerous shortcomings and loopholes in the new legislation and warned of its potential repercussions for workers. According to the government, the purpose of this law is to prevent fixed-term employment contracts, eliminate the subcontracting of labor, and guarantee the right to permanent and stable employment. The government asserts that these objectives are in line with the Tunisian state's social vision.
