Phosphate in Tunisia: Mourad Hattab Warns of the Need for Structural Reform

Economist Mourad Hattab has cautioned about the structural challenges that are hindering the revival of the phosphate sector in Tunisia. In a recent statement to Mosaïque FM, he emphasised the urgency of deep reform, stating that the efforts made so far have not significantly improved the situation.

Since 2011, twelve ministerial councils have been dedicated to the phosphate sector, and 105 measures have been adopted to try to revitalize this strategic sector. Nevertheless, these initiatives have not been sufficient to boost production or ensure optimal resource exploitation. According to Hattab, it is critical to adopt new methodologies and tailored solutions, without which phosphate will not become a stable source of foreign currency for the Tunisian economy.

Excessive Payroll Weighing on Profitability

One of the main obstacles to the sector’s recovery is the payroll burden. The sector currently employs 30,000 people, a workforce considered disproportionate compared to the actual needs and productivity of the field.

“The sector will not recover as long as we maintain such a heavy payroll, a large portion of which does not contribute to profitability or revenue,” said Mourad Hattab. He emphasizes the necessity to rethink human resource management and optimize the workforce to improve competitiveness.

Modernizing Extraction Techniques for Greater Efficiency

According to the economist, Tunisia continues to use outdated extraction methods, which decrease productivity and compromise the sector’s competitiveness on the international stage. To address this delay, he recommends adopting new technologies that would allow for better output and reduced production costs.

Transforming Phosphate Locally: An Economic Necessity

One of Mourad Hattab’s key recommendations is the local value addition to phosphate before export. He points out that raw phosphate is not a resource in itself and that exporting it without transformation represents a significant loss to the national economy.

“Exporting our resources in raw form, whether it’s phosphate or olive oil, is a colossal loss for Tunisia. We need to invest in local industries that respect environmental and social standards,” he said.

Government Ambition to Be Realized

The Tunisian government has set ambitious objectives for the sector, seeking to quintuple phosphate production by 2030 to strengthen public finances. However, according to Hattab, this expansion will only succeed if profound structural reforms are implemented, tailored to the demands of the international market.

For phosphate to become a true engine of growth, Tunisia must adopt a comprehensive strategy, integrating technological modernization, cost rationalization, and local transformation. These are the challenges that must be met to ensure a sustainable future for this key sector of the national economy.