Tunisia’s state-owned phosphate company, Companie des Phosphates de Gafsa (CPG), faces scrutiny over 21,000 employees receiving salaries without performing duties, including worker Abdel-Basset Klifhi who earns $280 monthly while spending days in a cafe. This practice intensified economic pressures as production dropped from 8.2 million tons in 2010 to 3 million tons in 2018, according to official data.
The company’s workforce expanded to 30,000 following the 2011 uprising, aiming to curb unrest but straining finances. CPG’s annual salary costs amount to $70 million of its $180 million budget, with protests disrupting operations. Industry and Energy Minister Slim Feriani acknowledged the hiring spree worsened the firm’s financial state, noting it lost nearly $1 billion yearly since 2011 due to disruptions.
IMF DELAYS ¶
CPG’s struggles have hindered Tunisia’s economic recovery, complicating its $2.6 billion IMF loan program. Delays in reforms, including public sector salary adjustments, have stalled disbursements. The firm’s reduced output has also shifted Tunisia from a top five global phosphate producer to 11th place, far behind Morocco, which boosted output to 30 million tons by 2018.
"Tunisia is no longer on the global phosphate production radar," Feriani said. CPG’s 2019 plan to increase output by 5-6 million tons hinges on ending protests, which have blocked operations for years. The government has allocated $90 million for new trains but faces challenges in upgrading infrastructure.
INEFFICIENT ¶
CPG’s inefficiencies include unused railcars and inflated transport costs. While train shipping costs $3 per ton, blockages force reliance on trucks charging up to $10 per ton. Officials also cited instances of unnecessary part replacements, though no corruption evidence was found. Analysts urge investment in railways over "imaginary jobs" to revive the sector.
In 2017, President Beji Caid Essebsi ordered the army to guard phosphate sites but has not dispersed the protests fearing a backlash. Tunisia agreed a $2.6 billion loan with the IMF in 2016, but delays in reforms, including public sector salary adjustments, have stalled disbursements.
