Phosphate sector crisis in Tunisia: Administrative solutions deemed insufficient

The current crisis in Tunisia's phosphate sector is fundamentally structural and cannot be resolved through simple administrative reorganizations, according to an expert in development and resources, Hussein Rhili. Speaking on Express Fm, Rhili asserted that the difficulties confronting the Compagnie des phosphates de Gafsa (CPG) and the Tunisian Chemical Group (GCT) extend far beyond governance issues or the appointment of a unified management.

Rhili emphasized that the problem lies in a profound and cumulative crisis impacting the entire phosphate value chain. He believes that appointing a single director-general for both companies, while maintaining separate boards of directors, is not an effective solution. This duality, he explained, complicates decision-making and weakens coordination between two closely interdependent entities.

Past restructuring attempts, such as unifying management in 1994 and merging commercial structures in 1996, were aimed at reviving the sector during challenging international conditions. However, Rhili noted that the current situation is vastly different. Both companies are grappling with accumulated financial, social, environmental, and technical difficulties. CPG suffers from significant declines in its financial and operational capacities, while GCT operates at only about 20% of its production capacity due to blocked investments and persistent structural issues.

The expert argued that merely combining two weakened institutions does not automatically create a more efficient entity. Without a clear strategic vision and a long-term recovery plan, potentially spanning 10 to 20 years, such an approach risks exacerbating existing dysfunctions. Rhili also pointed out that the phosphate sector is no longer a classic extractive activity but is now part of a global competition for strategic raw materials, necessitating a complete re-evaluation of Tunisia's position.

Furthermore, Rhili highlighted that environmental issues related to phosphates are not confined to the Gabès region but also affect mining areas. These regions continue to experience significant pressure on water resources and increasing health and environmental impacts. The expert called for a comprehensive approach to address these multifaceted challenges.