Suspension of Confiscated Company Sales in Tunisia

Suspension of Confiscated Company Sales in Tunisia Raises Questions

For more than two years, the sale of confiscated companies in Tunisia has been suspended, raising questions about the future of these institutions and the possibility of integrating them into the public sector. This halt follows the directives of Tunisian President Kais Saied, who opposes the sales in order to preserve public funds.

Are we witnessing a move toward full nationalization of these companies? Or are alternative solutions under consideration? This question remains open, especially in the absence of clear strategies for managing these institutions.

Suspended Deals and Lack of New Agreements

Karama Holding manages around sixty companies confiscated from relatives of former President Zine El Abidine Ben Ali. Since the departure of its former director, Adel Jarrar, in February 2023, no new sales have been made under the management of Sami Ben Jamaa, except for a pre-arranged deal to sell part of Med Telecom’s capital, which operates Mosaique FM radio station.

In 2023, Karama Holding launched three calls for bids to sell shares in four confiscated companies, such as Nouvelair Tunisia and the insurance company UPCAR, but none yielded tangible results. This is largely attributed to President Saied’s opposition, as he rejects the sale of state assets, describing such transactions as a “waste of public funds.”

Nationalization as a Possible Alternative

On several occasions, Kais Saied has criticized the management of confiscated assets. During his visit to Dar Assabah media group in June 2023, he condemned the sale of Shems FM radio, arguing that it was sold at an excessively low price. In September of the same year, he accused unidentified parties of selling state-owned properties at cheap prices.

Later, in December 2024, a court ruling declared Radio Tunisia bankrupt, leading to the integration of Shems FM employees into the public sector. This decision reflects the state’s shift toward full nationalization of certain media institutions, as seen previously with Zitouna Radio in 2021 and the integration of Dar Assabah with SNIPE, the official publisher of La Presse and Essahafa newspapers.

These decisions are viewed as part of a broader strategy to restructure Tunisia’s media landscape, sparking concerns about declining media diversity and increased state control over content. The merger of Dar Assabah with SNIPE raises additional concerns about media independence and the challenges posed by significant structural changes.

Media Control and Restrictions on Freedoms

Tunisia appears to be moving toward a media model dominated by the executive authority, with growing concerns over shrinking free speech and increasing state control over media institutions. Recent decisions, including the merger of major media outlets into state-affiliated entities, indicate a clear trend toward reducing independent voices and tightening control over the media sector.

Crackdown on Journalism and Restriction of Dissenting Opinions

Journalists in Tunisia no longer operate with the same level of freedom as before. Restrictions on independent journalism are increasing, with direct and indirect threats against journalists covering sensitive issues. In the absence of legal safeguards protecting media from political interference, Tunisia’s media landscape risks becoming a tool for government propaganda rather than an independent watchdog.

State Control Over Economic Resources

Kais Saied’s policies are not limited to the media sector but extend to broader efforts to consolidate state control over key economic resources. The suspension of privatization and the ban on selling confiscated companies reflect a clear move toward nationalizing the economy and keeping it under state control. While these policies are promoted as measures to protect public funds, they may, in reality, increase the financial burden on the state and weaken the business environment.

What Is the Future of Confiscated Companies?

Caught between nationalization and stagnation, confiscated companies face an uncertain future. Without a clear strategy for restructuring them or integrating them into new investment plans, the question remains: Will Tunisia be able to leverage these assets to boost its economy, or will the decision to halt sales only add to the state’s financial burdens?

At the same time, both local and foreign investors are closely watching the government’s stance on these companies, especially amid a deteriorating investment climate and unclear economic policies. Can the government strike a balance between preserving these institutions and finding sustainable solutions that ensure their continuity without making them a liability for the state?

Massin Kevin Labidi