(Ecofin Agency) - According to a report, in 2021, 50% of the private investments attracted by Tunisian firms were growth capital, and 30% were venture funds. For the first time, the country attracted distressed investments, which represented 20% of overall private investments. 

In 2021, for the first time, Tunisia attracted distressed investments. That year, investors committed DT68 million (US$22.5 million) as a distressed investment in 20 ailing distressed Tunisian firms with positive recovery outlooks. The estimate is presented in a recent report on the 2021 venture capital activities in Tunisia published by ATIC, the local association of venture capitalists. 

According to ATIC Chairman Mohamed Salah Frad, the distressed investments attracted by the 20 firms represented 20% of the overall private investments. It is “a record percentage in the industry. This confirms actors’ commitment to supporting distressed companies…,” he added. 

Overall, in 2021, DT335 million were invested in 154 projects in Tunisia. The amount is down 13.2% compared with the DT386 million committed in 2020. The number of projects financed was also down by 11.5% year on year (154 projects financed n 2021 against 174 in 2020).  DT100 million were invested as venture funds, down by 34% compared to the 2020 volume. Growth Investments were estimated at DT166.7 million, down by 31.5% compared with the DT243.4 million recorded in 2020. 

Venture capital investments captured 30% of the overall investments against 50% for growth investments and 20% for distressed investments.  The sector that attracted investments the most that year was the miscellaneous sector with 35 operations and DT80 million attracted. It is followed by the food industry with DT65.5 million attracted and agriculture with DT40.6 million.  

Chamberline MOKO