2027 Budget: Announced Measures to Prevent Summer Power Outages

Written by: Adel Khelifi on November 5, 2026

The credits proposed for the Industry, Mines and Energy mission reach 7,890.2 million dinars in 2027, compared to 5,325.6 million in 2026, a rise of 48.2 %. During a parliamentary hearing held on Tuesday 3 November 2026, deputies notably questioned the minister in charge of managing the ministry, Salah Zouari, about the risks of power outages during the summer of 2027, as well as the files on phosphate, industry and energy transition.

A hearing devoted to the sector’s priorities

The Commission on Industry, Trade, Natural Resources, Energy and Environment of the Assembly of the Representatives of the People held a joint session with the Commission on Productive Sectors of the National Council of Regions and Districts. The two commissions heard Salah Zouari on the 2027 budget project for the mission.

The session was chaired by Mohamed Amine Mabrouki and Aymen Abidi, presidents of the two commissions. Attending were also the vice-president of the commission Adnane Allouch, the members Maha Amer, Boutheina Ghanmi, Issam Bahri Jebari, Mohamed Majdi and Abdelaziz Chaabani, as well as non-member deputies.

In opening, the commission president emphasized the role of industry, mining and energy in investment, energy security, valorization of natural resources, job creation and the strengthening of the industrial fabric. He also recalled the challenges facing the country, notably the high cost of energy, the energy deficit and the need to revive national production of hydrocarbons and phosphate.

Industry: 1,509 projects declared in nine months

The minister presented the ministry’s directions: strengthen national production and valorize local resources, improve industrial competitiveness, develop technologies and the digital transition, modernize the phosphate sector and accelerate the energy transition. Monitoring the restructuring of strategic public enterprises is also among the announced priorities.

The Tunisian industrial fabric comprises about 5,000 companies employing more than ten people. Of these, 45% are fully export-oriented, and the total represents nearly 523,000 jobs.

During the first nine months of 2026, 1,509 industrial projects were declared, with investments estimated at 1,445.3 million dinars. They should generate 31,060 jobs.

In the same period, exports of mechanical and electrical industries rose by 8.5%, and those of agri-food industries by 16.6%. Exports of textiles and clothing, by contrast, fell by 4.5%.

The minister also reported a 39.5% increase in olive oil exports, with volumes reaching 343,400 tonnes, including 52,600 tonnes packaged, compared to 244,000 tonnes in the corresponding period of 2025. These volumes and the announced growth rate do not match exactly: calculating from the two volumes yields an increase of about 40.7%.

Modernization and industrial zones

Industrial upgrading programs must continue to modernize equipment, improve quality and productivity, and support technological investment. The ministry also plans to support smart industry and Industry 4.0, extend decarbonization programs and complete the deployment of e-industry platforms and HUB 4.0.

Investments related to upgrading and technological investment are estimated at 770 million dinars in 2027, compared to 586 million in 2026.

The program also aims to continue the development of industrial zones, prioritizing development regions, as well as to relaunch certain projects. By the end of 2026, industrial and technological poles hosted about 870 companies, including 85 foreign companies, with investments exceeding 3,000 million dinars. They contributed to the creation of about 600 start-ups and nearly 47,000 jobs. For 2027, the ministry plans pole development, expansion of industrial zones and the creation of ecological industrial zones.

According to the figures presented, the Industry program budget stands at 167.188 million dinars in 2027, compared to 187.092 million in 2026, a decrease of 10.64%.

Phosphate: a production plan through 2035

Commercial phosphate production for 2026 is estimated at 2.8 million tonnes, versus 4.5 million tonnes planned. The 2027-2035 business plan envisions raising the production of the Gafsa Phosphate Company from 4.3 million tonnes in 2027 to 9.4 million in 2035. The Tunisian Chemical Group’s processing capacities should, for their part, rise from 3.5 to 6.5 million tonnes.

Among the measures announced for 2027 are the acquisition of 14 loaders, the drilling of 7 replacement wells, the acceleration of the Oum El Khacheb 1 and Mdhilla 2 projects, as well as the restructuring of the Tunisian Company for the Transport of Mining Products.

The deputies questioned the minister about financing of phosphate washing plants, the loan intended to renew the railway network, and the Sra Ouertane phosphate project. They also raised questions about the environmental upgrading of the Tunisian Chemical Group, the situation in Gabes and the effects of exploration near agricultural areas.

In response, the minister spoke of accumulating difficulties, the limited capacity of equipment and the high cost of their maintenance. He indicated that two alternative plans rested on renewing the equipment and completing Mdhilla 2. The investments required would, however, require loans that the company’s financial situation currently cannot mobilize.

For the Tunisian Chemical Group, the minister specified that the 500 million dinar subsidy included in the budget project aims to support the agricultural sector. The group would have suffered nearly 700 million dinars of losses by selling fertilizers on the local market. Experts have also noted that some equipment has been idle for 15 years. The minister compared the price of a tonne of crude phosphate, estimated at about $100, to that of a tonne after transformation and valorization, which reaches $935.

The energy deficit reaches 4.7 million tonnes of oil equivalent

By the end of August 2026, the energy balance deficit stood at 4.7 million tonnes of oil equivalent, up 12%. Energy independence fell to 32%, compared with 36% at the same period the previous year. The minister attributed this mainly to the decline in production from the main fields and the lack of new discoveries.

The production start-up of the concessions “Arefa”, “Aziza” and “Kosmos” should bring an additional 600,000 cubic meters of natural gas per day from June 2027. Exploration continues, the minister said, to strengthen national production and discover new reserves. The project for a new Hydrocarbons Code should also support investments while preserving the state’s interests.

Electricity: measures announced before summer 2027

During the summer of 2026, the peak electricity demand ranged between 6,000 and 6,400 megawatts, while available capacity was around 4,450 megawatts. To reduce this gap, the ministry is betting on demand management and talks with industries and large consumers, aiming to cut demand by about 300 MW.

The measures announced include the integration of 300 MW of renewable energy, the installation of a 300 MW battery storage system, and the equipment of turbines with cooling systems. These are expected to deliver 150 MW before the summer of 2027, and a further 100 MW before the summer of 2028. The plan also calls for the acquisition of gas engines with a total capacity of 200 MW, of which 100 MW before summer 2027.

The deputies expressed concern about a potential repetition of outages during the summer of 2027. They mentioned the expected rise in temperatures and demand, as well as the concession projects’ schedule, with commissioning planned for 2028. They asked for details on economic and social losses, any compensations, responsibilities and the existence of a contingency plan in case of delays in the announced measures.

The lawmakers also questioned the cost of incentives for industry to curb consumption during peak hours and the capacity of batteries to ease the grid, given their cost. They proposed targeting large companies, hotels and big consumers, equipping factories and hospitals with generators, and exempting from customs duties and VAT generators, solar panels and batteries.

Among other proposals are the development of solar energy in administrations, schools, hospitals and public institutions, the installation of smart meters and the strengthening of awareness campaigns on energy conservation.

The deputies urge more local production

The parliamentarians urged to strengthen energy autonomy and to consider foreign investments as a complement to national production. They also called for projects to be carried out by the Tunisian Electricity and Gas Company, the transfer of competencies to Tunisian specialists in photovoltaics, and the development of local solar panel production.

The discussions also addressed the increase in the overall mission budget, alongside the decline in industry credits and energy development interventions, as well as the rise of energy subsidies. Some deputies urged better targeting of these aids and questioned the minister about loans, the texts relating to electricity production concessions and the timeline for the new Hydrocarbons Code.

In industrial matters, they asked for details on the sector’s new policy and projects likely to create wealth. They urged protection of local production, support for Tunisian manufacturers and their exports, and better coordination among state structures. The financial situation of public companies and their possible audit were also discussed.

Finally, several interventions denounced idle or underutilized industrial zones, delayed projects and unrealized investment opportunities. The deputies called for a fairer distribution of investments between regions and districts.

The minister acknowledges delays in certain measures

Salah Zouari acknowledged that some measures had been delayed and that the targets had not been met as planned. He described the summer crisis as a situation that had to be faced.

On the industrial front, he recalled that investment mainly comes from the private sector and that the ministry intervenes to support investors and facilitate procedures. He said that investments planned in the industrial fabric amounted to about 770 million dinars, and that several inland governorates should host significant investments.

Regarding electricity, the minister stated that the approved concession projects should be ready in 2028, with part of their production expected as early as 2027. The objective is to raise the share of renewables to 35 % by 2030. According to him, supporting investors and simplifying procedures should contribute to this objective, while authorizations could be withdrawn from investors who abandon their projects.

As part of the sixth cycle of authorizations, 309 applications, representing a total capacity of about 455 MW, were accepted. The concerned investors may then join the concession regime.

Adel Khelifi

Adel Khelifi

My name is Adel Khelifi, and I’m a journalist based in Tunis with a passion for telling local stories to a global audience. I cover current affairs, culture, and social issues with a focus on clarity and context. I believe journalism should connect people, not just inform them.