Power Outages in Tunisia 1.27 Billion Dinars in Lost Value Added for Businesses According to IACE

Posted by Llama 3 70b on 28 October 2026

2026 Summer Blackouts Cost Tunisian Businesses Nearly 1.27 Billion Dinars

The power outages that plagued Tunisia during the summer of 2026 have come at a steep price for local businesses. Activity stoppages triggered by these interruptions resulted in a direct loss of value added estimated at 1,269.6 million dinars (approximately 1.27 billion dinars).

In a survey published on October 27, 2026, the Arab Institute of Business Leaders (IACE) revealed that 96% of the companies surveyed experienced power cuts, with an average of 13 days of lost activity across July and August.

Economic Impact Extends Beyond Lost Production Hours

The consequences of these disruptions go far beyond mere lost production time. The electrical interruptions have impacted multiple facets of economic activity, including:

  • Declines in revenue
  • Damage to equipment
  • Delivery delays
  • Postponed investment projects

As businesses brace for potential new supply tensions, the industrial sector bears the brunt of these losses. According to the IACE, the breakdown of lost value added is as follows:

  • Manufacturing Industry: 671.5 million dinars
  • Commercial Services: 316.1 million dinars
  • Commerce: 282.1 million dinars

Note: These figures represent only the value added that companies were unable to generate during stoppages. They do not include other damages such as physical equipment destruction, lost customers, or potential contractual penalties.

Frequency and Severity of Interruptions

The frequency of outages highlights the scale of the disruption:

  • 58.3% of surveyed companies reported suffering multiple power cuts per day.
  • While the average loss was 13 days over the two-month period, 29% of respondents indicated they lost at least 20 days of activity—equivalent to a full working month.
  • Nearly two-thirds of companies reported physical damage, particularly to motors, compressors, production machines, IT equipment, and servers.

Revenue and Commercial Commitments Under Pressure

The financial strain is evident in revenue figures and commercial obligations:

  • 63.5% of all surveyed companies reported a decrease in revenue.
  • In the industrial sector, this proportion rises to 83%.
  • Export-oriented companies are particularly vulnerable: 29.4% reported missing delivery deadlines, leading to penalties or customer loss.
  • To maintain commitments, 8.3% of companies resorted to subcontracting or imports to compensate for the disruptions.

Rising Costs and Margin Compression

Upstream costs have also increased. The survey indicates that 30.5% of companies faced a rise in input costs, while increases in selling prices remain rare. This dynamic limits companies' ability to pass on these extra costs to customers, potentially compressing profit margins.

Backup Power Becomes a New Investment Priority

The summer of 2026 has shifted corporate investment strategies:

  • Before the summer: 56% of surveyed companies had no backup equipment.
  • After the outages: 74% plan to invest in securing their power supply within the next 12 months.
    • 18% have already made the decision.
    • 56% are still in the study phase.

Generators, photovoltaic installations, batteries, and other backup solutions are expected to take up a larger share of corporate budgets. However, this adaptation comes at a cost. The IACE warns that these expenditures may divert resources that would otherwise have funded capacity expansion, equipment modernization, or other productive investments.

This issue is particularly sensitive given that 51.9% of surveyed companies report postponing an investment project. For business leaders, the challenge is no longer just about absorbing losses from outages; it involves making critical trade-offs between securing daily operations and financing growth.

Compensation Remains an Open Question

The issue of compensation remains unresolved:

  • No surveyed company confirmed receiving compensation for the consequences of the outages.
  • Only 1% of respondents reported having pending or rejected compensation claims.

While these figures do not definitively prove the absence of general compensation mechanisms, they raise significant questions about their functionality and the effective coverage of damages.

Concerning Outlook for 2027

The future looks challenging. All surveyed companies that provided an outlook anticipate a recurrence of tensions in the electrical system in 2027.

For Tunisian businesses, the continuity of power supply has emerged as a key competitiveness issue, particularly for industrialists and exporters facing strict production and delivery constraints.


Methodology Note: The IACE survey covers industrial, commercial, and commercial service companies. The sample composition is:

  • 55% Industrial companies
  • 39% Commercial service companies
  • 6% Commercial companies

These results reflect the declarations of the surveyed companies and should not be interpreted as an exhaustive measure of the entire Tunisian economic fabric without additional information regarding the sample's representativeness.