In 2023, BioNTech, the German biotech company behind the Pfizer Covid-19 vaccine, bought InstaDeep, a Tunisian AI startup. InstaDeep develops AI tools that help businesses make decisions, focusing on both research and practical use. The $549 million deal was a milestone for Tunisia, showing that the country can export advanced technology, not just technical talent.
Since then, Tunisia’s startup scene has picked up speed. More than 1,450 new startups have launched, and government funding has increased, indicating that both investors and officials are taking tech more seriously. Many founders are now building practical AI tools that address real needs, such as making healthcare research faster, improving tourism or developing games based on local culture.
The Startup Act’s Unusual Safety Net
Tunisia’s Startup Act, introduced in 2018, helped turn this momentum into real support, making it easier for founders to start companies, take risks and grow their businesses.
The incentives are unusually comprehensive. Founders can qualify for government grants and a monthly allowance of about $320 to $1,600. Employees can also take up to two years off work to launch a startup, with the option to return to their job if things don’t work out.
Tunisia designed the Startup Act to make it easier for people to start businesses, hoping to become a regional innovation hub. The goal is to lower barriers for entrepreneurs and use start-ups to create jobs and keep more young talent in the country.
Beyond Outsourcing
With a major tech exit and strong government support, Tunisia is seeing a new wave of start-ups. These companies are now building tools for local and regional needs, not just offering services to clients abroad. It’s a shift from Tunisia’s old image as an outsourcing hub for Europe.
Startups are moving away from outsourcing and focusing on their own products. These include tools for drug discovery, heritage tourism and creative projects that highlight Arabic language and culture.
AI for Drug Discovery
In healthtech, DrugIT is one example of how Tunisia is moving from importing pharmaceuticals to doing its own research.
Cofounded by Jawher Khalifa, DrugIT uses AI to “streamline processes in pharmaceutical R&D and research”. Instead of relying solely on slow, expensive lab testing, the company builds computational models that simulate how compounds might behave – helping researchers narrow down promising options earlier in the process.
The aim is to make drug discovery faster and less dependent on expensive late-stage trials, mainly by using drug formulations and virtual clinical trials. DrugIT is part of a larger group of Tunisian startups supported by national programs like Flywheel, which has given prototyping grants to hundreds of companies. As of now, they’re planning to “expand to certain regions in Africa, and the Middle East as well”.
A Digital Layer for Heritage Tourism
Tunisia has nine Unesco World Heritage sites, including ancient Carthage, Kairouan, the Roman amphitheatre at El Jem, and several coastal Medina cities. These places attract visitors from around the world, but many still lack the digital tools that modern travellers look for.
