An investment plan by Tunisia to more than double phosphate production to bolster exports of goods is facing financial difficulties and other problems.

The state-owned Gafsa Phosphate Company (CPG) admitted in a parliament session that it needs to urgently tackle those problems in order to push ahead with expansion plans that involve investment of 2.7 billion Tunisian dinars ($930 million).

Its CEO Omar Bouzouada told parliament on Thursday that CPG is currently working on a “comprehensive strategy” for its development, aiming to increase commercial production to 9.4 million tonnes by 2035.

But he noted that the difficult financial situation of CPG and the state-owned Tunisian Chemical Group has limited their ability to fulfill their developmental plans at both the regional and local levels.

In his comments, carried by the state news agency, Bouzouada said CPG’s phosphate production capacity is expected to reach around 4.5 million tonnes by 2026, while transportation issues and the shortage of water resources allocated for phosphate processing remain among the most significant obstacles.

To address these challenges, he proposed a series of urgent measures, including securing lines of credit to cover treasury needs, bolstering internal resources by increasing exports and rescheduling company debts.

“The restructuring programme is based primarily on rescheduling bank loans, addressing the debts of public suppliers, completing necessary maintenance work, securing the supply of raw materials and improving the readiness of production units.”

The phosphates sector makes up around 4 percent of Tunisia’s GDP and 15 percent of the North African country’s exports.

Tunisia was the fifth largest producer worldwide in 2008, but the sector has witnessed a significant decline due in part to social tensions and protests in the region.

Phosphate and olive oil are the backbone of Tunisia’s exports and a key component of the country’s hard currency earnings which are needed to offset fiscal gaps.

Official data showed Tunisia’s phosphate exports were valued at around TND2.4 billion in the first quarter of 2026, nearly 15 percent of the total exports of about TND16 billion.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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