🇹🇳TunisiaNorth Africa
Tunisian Parliament debates new loan for phosphate rail modernization amid sector challenges
via Business News6 min read
The Tunisian Parliament is reviewing a 153 million dinar loan from the Arab Fund for Economic and Social Development AFESD to modernize railway lines for phosphate transport. This initiative, debated on April 21, 2026, aims to renew and upgrade rail infrastructure in Gabès, Gafsa, and Sfax, covering approximately 190.5 kilometers of tracks. While the loan seeks to streamline phosphate delivery, reduce logistics costs, and enhance competitiveness, parliamentary discussions have highlighted deeper, persistent issues within the phosphate sector. During commission hearings, leaders from the Gafsa Phosphate Company CPG and the Tunisian Chemical Group GCT emphasized the urgent need for comprehensive upgrades across production, transport, and processing. However, deputies raised concerns about the effectiveness of previous loans and the absence of a clear, integrated recovery strategy. The Director General of CPG acknowledged that past investments had not yielded expected results and admitted to a lack of a clear program for renewing the phosphate wagon fleet. A significant point of contention was the discrepancy in production figures for 2025; CPG reported 3.9 million tons, while the President of the Finance and Budget Committee, Maher Kettari, cited figures closer to one million tons. This disparity raises questions about transparency and the economic rationale for investing heavily in rail transport if production remains low. The GCT's Director General also revealed that the grou
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Must ReadTunisia's inflation rate remained at 5.5% in May 2026, consistent with April's figures, according to the National Institute of Statistics INS. This follows a slight increase in inflation during spring, up from 5% in March and February 2026, and 4.8% in January 2026. While the overall inflation trend has been downward over the past two years, food prices continue to experience significant increases. The "Food and beverages" group saw an 8.2% annual rise in May 2026, a rate higher than general inflation. Six food categories recorded double-digit annual price increases in May 2026: lamb meat 21.8%, poultry 15.6%, beef 14.1%, fresh vegetables 12.2%, fresh fish 11.9%, and fresh fruits 11.6%. Other increases include dried fruits 6%, cereal derivatives 5.8%, chocolate and confectionery 5%, and salt and condiments 4.3%. Mineral water, beverages, and juices rose by 3%. Conversely, some prices decreased, with cooking oils down 6.1%, eggs down 4.6%, and dried vegetables down 0.4%. Powdered coffee prices remained stable. Monthly food prices increased by 0.4% in May 2026, primarily driven by a 4.2% rise in meat prices, including lamb and mutton 9.7% and beef 2.3%. This coincides with consumer complaints about high lamb prices ahead of Eid al-Adha. Despite the stabilization of the overall inflation rate, the continued rise in food prices, particularly double-digit increases in several categories, continues to strain household budgets in Tunisia.
Tunisia's inflation rate remained stable at 5.5% in May 2026, consistent with the April 2026 figure, according to the National Institute of Statistics. This follows a period of fluctuation, with inflation at 5% in March and February 2026, 4.8% in January 2026, and 5.2% in August 2025. A year prior, it was 5.9% in March 2025, 5.7% in February 2025, and 6% in January 2025, peaking at 7% in July 2024. While the overall pace of price increases has slowed, significant rises persist in certain categories, particularly food, which remains a primary concern for Tunisian households. The stability at 5.5% is partly attributed to the consistent 8.2% increase in "Food and beverages" prices, while "Clothing and footwear" saw a slight slowdown from 9.3% in April to 9.1% in May. Conversely, tobacco prices accelerated from 0.4% to 0.8%, and hotel and restaurant services increased from 6.2% to 6.3%. Food products continue to outpace general inflation, with "Food and beverages" prices rising 8.2% year-on-year. Lamb saw the highest increase at 21.8%, followed by poultry at 15.6%, and beef at 14.1%. Fresh vegetables, fresh fish, and fresh fruits also experienced increases exceeding 10%. Other notable increases include dried fruits at 6%, cereal derivatives at 5.8%, chocolate and confectionery at 5%, and salts and condiments at 4.3%. Mineral water, beverages, and juices rose by 3%. In contrast, some items saw price reductions: edible oils decreased by 6.1%, eggs by 4.6%, and dried vegetables by 0
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