Ticket | Regaining ground in the global market

2023-05-03 09:31:44

For decades, we have always been aware that developing phosphate production can kill two birds with one stone. Not only does this make it possible to maintain the balance of public finances, but also to gain geopolitical weight. Phosphate production as a catalyst for Tunisia’s economic hegemony in the region is not a new strategy, however.

The mining sector has always been a safe economic asset. Moreover. It is a source of growth in difficult times. But the effects of the pandemic and the difficult national and international situation did not allow this industry to achieve the desired performance and to approach the indicators for the year 2010 (production of 8 million tons) and even before, where the sector of phosphates and derivatives shone internationally.

The record indicators recorded in Tunisia in 2010 enabled it to firmly anchor itself in the fertilizer market and to position itself as one of the world’s leading producers and exporters of phosphate fertilizers. Today, the country has gone from fifth to twelfth world producer. In 2020, he even had to import phosphate from Algeria to meet his needs.

Phosphate production has been in continuous decline since the revolution (2.7 to 4 million tonnes), experiencing repeated blockages. Several sites have been shut down repeatedly. And for good reason: the protests led by young people since the revolution because of unemployment, lack of development and investment, etc. Result: the production of this national wealth has slowed down sharply, almost paralyzed by social unrest for more than a decade. The Gafsa Phosphate Company (CPG), this vital company for the country, —since Tunisia was the 5e world exporter of phosphate before the revolution—, and one of the sources of foreign currency for the economy, sees its income plummet. She was only able to spin at 30% capacity.

Faced with this alarming situation, the President of the Republic Kaïs Saïd called last week for the revival of the flagging phosphate industry. An industry “capable of generating income allowing Tunisia to do without borrowing from international institutions”. And to recall that “our gold is underground while the country is facing a difficult financial situation. Production might reach ten million tonnes per year and the income generated might largely replenish the state coffers”. He also denounced “corruption” largely responsible for the slowdown in production, citing in particular the acquisition of wagons for the transport of phosphate which “turned out to be unusable on the existing railway line”.

We should get down to business today to stimulate a new dynamic in the phosphate sector with a view to enhancing its performance and its impact both economically and socially and to respond, on the one hand, to the intrinsic challenges facing this sector, in particular the need to seek new deposits, the optimization of added value and the affirmation of sustainable development issues and, on the other hand, to meet the extrinsic challenges linked mainly to social and environmental requirements. Production is expected to move upwards to further boost profits and regain ground in the global market.

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