CPG GCT a 2.7 billion dinar plan to revitalize the phosphate sector

Posted by Llama 3 70b on 19 June 2026

Tunisia's Phosphate Sector Seeks to Regain Momentum

The Tunisian phosphate sector, long considered one of the country's main foreign exchange earners, is now seeking to regain its former dynamism. Faced with difficulties that have accumulated over the years, the Gafsa Phosphate Company (CPG) and the Tunisian Chemical Group (GCT) are working on a recovery strategy aimed at increasing commercial phosphate production to 9.4 million tons by 2035.

Investment Program

This vision, presented to the Finance and Budget Commission of the National Council of Regions and Districts, is based on an investment program estimated at nearly 2.7 billion dinars. The goal is not only to increase production volumes but also to upgrade the entire value chain, from extraction to industrial processing.

Production Targets

In the short term, production is expected to reach 4.5 million tons in 2026 and then exceed 5 million tons in 2028. However, sector officials must still contend with several persistent constraints. Transportation difficulties continue to slow down the delivery of ore, while the scarcity of water resources complicates phosphate washing operations. The use of treated wastewater is now being considered as a solution to reduce pressure on conventional resources.

Industrial Challenges

The Tunisian Chemical Group is also facing a delicate situation. The decline in phosphate supplies, combined with a liquidity crisis, has affected the operation of several production units. This is exacerbated by the aging of equipment and the multiplication of technical failures, which limit transformation capacities and weigh on the group's competitiveness.

Recovery Measures

To address this situation, leaders are counting on a series of measures aimed at gradually restoring financial balances. Opening new financing lines, rescheduling debts, and accelerating exports are among the immediate priorities. Improving phosphate transportation, both by road and rail, is also a major challenge for fluidifying activity.

Structuring Projects

The industrial recovery also involves several structuring projects. Among them, the "Mdhilla 2" project is considered a key lever for strengthening transformation capacities and improving the GCT's financial situation. Officials also emphasize the need to accelerate phosphogypsum valorization projects, a byproduct of phosphate that could open up new economic opportunities while addressing certain environmental concerns.

Debates and Recommendations

During the debates, members of the Commission stressed the importance of quickly implementing the necessary reforms to preserve a sector considered strategic for the national economy. Environmental issues, particularly in the Gabès region, equipment modernization, and increasing the added value of phosphate products took center stage in the discussions.

Conclusion

Beyond the numbers and production targets, the challenge is now to restore the confidence of financial and industrial partners while giving the sector the means to regain its place in international markets. The success of this recovery will depend as much on the announced investments as on the ability of the various actors to lift the structural blockages that have hindered the development of the Tunisian phosphate sector for several years.