There was a moment of optimism that Tunisia’s phosphate and derivatives sector was on the path to recovery. While hopes remain alive, efforts continue to revive an industry that remains burdened by deep structural and financial challenges.
The latest institution to address the issue was Parliament, through the Finance and Budget Committee of the National Council of Regions and Districts (CNRD), which heard presentations from the Gafsa Phosphate Company (CPG) and the Tunisian Chemical Group (GCT). Officials outlined several financial and operational difficulties affecting the sector.
An integrated development strategy is currently being prepared with the aim of increasing marketable phosphate production to 9.4 million tons by 2035 through investments estimated at nearly 2.7 billion dinars.
CPG and GCT Chief Executive Omar Bouzouada said all stakeholders, in coordination with the Prime Ministry, are working to resolve the issues hindering the sector’s development and to implement a reform-oriented recovery vision.
A presentation delivered during the session indicated that phosphate production capacity is expected to reach around 4.5 million tons in 2026.
However, transport bottlenecks and the shortage of water required for phosphate washing remain among the main obstacles affecting operations.
To address these challenges, the company proposed several urgent measures, including establishing financing lines to meet liquidity needs, accelerating exports to strengthen internal resources, rescheduling debts, securing phosphate transport by trucks on the Redeyef-Gabès-Skhira route, reinforcing rail transport, ensuring uninterrupted ammonium nitrate supplies and building strategic reserves of the product.
Growing financial pressures
The presentation on the Tunisian Chemical Group highlighted the company’s strategic role as a cornerstone of Tunisia’s phosphate industry and the main client of the Gafsa Phosphate Company, in addition to supplying the domestic market with fertilizers at preferential prices and contributing to foreign currency revenues.
However, the group is facing mounting financial difficulties. Indicators presented during the meeting showed declining utilization rates across production units and lower phosphate processing volumes, due to reduced output from CPG and liquidity shortages affecting raw material supplies, compounded by ageing equipment and a rise in breakdowns and unplanned shutdowns.
GCT officials said the restructuring program is primarily focused on carrying out necessary maintenance works, securing raw material supplies, improving production unit availability and accelerating the implementation of the “Mdhilla 2” project.
According to the officials, these measures would help restore financial stability, increase phosphate processing rates, improve debt repayment capacity and rebuild confidence among banks and financial partners.
Governance reform seen as key to recovery
During the debate, lawmakers stressed that rescuing CPG and GCT requires accelerating restructuring efforts and strengthening governance, given the sector’s central role in Tunisia’s economy.
Several MPs questioned the progress of the production development strategy and called for broader dialogue with stakeholders.
They also raised concerns over environmental conditions in the Gabès governorate, the exploitation of the Sra-Ouertane project in Kef governorate and the impact of rising wage bills and landscaping company expenses on the financial balance of both firms.
Lawmakers further called for clarification on plans to modernize equipment and increase the added value of phosphate products to improve their competitiveness on international markets.
They also urged the adoption of sustainable solutions to industrial water consumption in phosphate washing, particularly through the use of treated wastewater.
In response, officials from both companies reaffirmed that the phosphate sector remains a key driver of Tunisia’s economy.
They noted that the unification of governance between CPG and GCT forms part of a new strategy aimed at improving performance.
Officials added that CPG’s strategy targets production of 5 million tons by 2028, while efforts are also under way to enhance the value of phosphogypsum through securing financing for dedicated projects.
They stressed that export growth remains dependent on developing higher value-added products.
At the end of the session, the Finance and Budget Committee recommended adopting urgent and exceptional measures to rescue CPG and GCT, improve their financial situation to enable them to meet commitments to suppliers and restore confidence among banks and partners, while implementing a realistic and effective strategy to revive the sector.
