Policy Research Reports
Under Which Conditions Can Tunisian MSMES Shift to A Successful Energy Transition?
No.
PRR 51
Publisher
ERF
Date
November, 2024
Summary
Background:
This case study of Tunisia places emphasis on the ongoing energy transition, underscoring its pivotal role in attaining sustainability and climate objectives. Tunisia has pledged to reduce its primary energy demand by 30% and generate 35% of its electricity from renewable sources by 2030. Its long-term objective is to achieve climate neutrality by 2050. This transition is not merely a matter of shifting energy sources; rather, it signifies a more profound socio-economic transformation. This necessitates a balancing act between neoliberal green extractivism, which places an emphasis on resource exploitation, and a more community-centered, just energy approach. The study focuses on elucidating the challenges and opportunities confronting Tunisia's MSMEs (micro, small, and medium enterprises), which occupy a pivotal role in the private sector and in job creation. The objective of the research is to examine the factors influencing the energy transition, including financial access, skill demand, and regulatory frameworks.
Methodology:
The study employed a mixed-methods approach, combining qualitative and quantitative methodologies, with the objective of gaining a comprehensive understanding of the subject matter. Quantitative data were gathered via the Economic Research Forum (ERF) survey, which encompassed 300 MSMEs across a range of economic sectors and regions in Tunisia. This data collection is part of a broader study conducted in six Middle East and North Africa (MENA) countries, which explores the role of MSMEs in fostering inclusive and sustainable economic growth amid the clean energy transition. In order to gain a deeper understanding of the subject matter, 34 key stakeholders were interviewed. These included researchers, finance professionals, NGO representatives, government officials, and MSME managers. The interviews were subjected to analysis using NVIVO software with a view to identifying recurring themes and perceptions pertaining to the energy transition.
Findings:
The findings of the study indicate that MSMEs in Tunisia are aware of the importance of the energy transition but face significant barriers to its implementation. These include high initial costs, limited financial resources, and a lack of targeted support mechanisms. Notwithstanding the fact that Tunisia's energy sector reforms and policies are oriented towards the promotion of renewable energy sources, the existence of bureaucratic inertia and regulatory complexities is proving to be an obstacle to the desired progress. The study underscores the necessity for strategic planning, effective policy implementation, and financial support tailored to MSMEs' specific needs.
Recommendations:
The recommendations underscore the necessity of enhancing governmental policies to cultivate a more conducive atmosphere for the energy transition. This entails the formulation of sector-specific strategies, the provision of financial incentives, the streamlining of administrative procedures, and the promotion of awareness and educational initiatives. The study posits that the realization of a successful energy transition hinges on a collaborative endeavor involving government entities, private enterprises, and international stakeholders. Furthermore, it advocates for a reassessment of the social contract to guarantee equitable benefits and inclusive involvement in the transition process.
Research Fellows
Adel Ben Youssef
Professor of Economics, University Côte d'Azur
Authors
Mounir Dahmani
Associate Professor of Economics, University of Gafsa,...
Authors
Walid Hadhri
Associate Professor (HDR), University of Tunis