Summary:

On 23 December 2024, Italian extractives firm, Minerali Industriali, filed a claim against Tunisia with the International Center for the Settlement of Investment Disputes (ICSID) over export tax hikes that previously prompted the company to scale back its operations. 

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In 2023, the Italian company announced that it was cancelling orders and firing employees after being impacted by rising export taxes included in the 2023 Finance Law. The company stated that the taxes caused the prices of its sand product to rocket by 150%, prompting its clients to cancel their orders. 

Minerali Industriali estimated its loss to over US $20 million in 2023. 

Meanwhile, on 19 December 2024 Canadian energy firm, Zenith Energy, announced the winning of its first claim against the Tunisian National Oil Company (ETAP) in the International Chamber of Commerce (ICC) concerning the non-payment of past profits by ETAP.  

The Arbitral Tribunal of the ICC ordered ETAP to give Zenith an award in the amount of approximately US$9.7 million, including accrued late payment interest. 

Outlook: 

The Minerali Industriali and Zenith cases highlight the impact of the finance law on discouraging or attracting foreign investment in Tunisia as the government seeks to increase revenues. 

The 2025 finance law recently released has already raised concerns over the potential negative impact on investment as it includes additional tax hikes to those added in 2023. Raising taxes will likely prove concerning for foreign investors and create further challenges to attract and reap the benefits of private firms.  

International claims against Tunisia and its nationalized firms can result in financial losses that will further burden the state at a point when it is already stretching resources to repay external debts.  

These claims are also likely to result in the country continuing to risk its international reputation among foreign investors because of administrative bureaucracy and, in some cases, unreliable domestic partners.  

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