São Paulo – Tunisia plans on increasing its phosphate production to 12 million tonnes by 2020. The manufactured volume was lower than 3 million tonnes last year. The information was supplied by Kamel Ben Naceur, the Tunisian minister of Industry, Mines and Energy, while attending the Brazil-Tunisia Economic forum this Tuesday (6th) at the headquarters of the Federation of Industry of the State of São Paulo (Fiesp), in the namesake capital.
“Output is down from eight million (tonnes) in 2010 to less than three million in 2013. The target this year is to go back to 5 or 5.5 million tonnes, then 8 million by 2016, and finally 12 million by 2020”, said Naceur.
The minister also said he is in talks for an eventual cooperation in the area with Brazil’s mining company Vale, in whose offices he attended a meeting last Monday (5th). “We are talking about excellent opportunities, first of all in technology, since Vale boasts experience in pipeline transportation of fertilizers with water. This type of system could be very interesting for us, for mines with outputs ranging from 2 to 3 million per annum,” he said.
Another potential area for cooperation with the Brazilian company, said Naceur, is a project for a phosphate mine in Midwest Tunisia. “The investment is US$ 2.5 billion. We will see how we can streamline the whole cycle by using the knowledge of companies such as Vale,” he said.
He also pointed out other sectors in which the two countries could work in tandem. “The opportunities for cooperation with Brazil lie in sectors such as electrical, mechanical, textiles, leathers and shoes, agrifoods, pharmaceutical, aeronautical, third-party services, tourism, and logistics services,” he asserted.
Marcelo Sallum, the president of the Arab Brazilian Chamber of Commerce, attended the meeting at Fiesp and gave bilateral trade figures between Brazil and Tunisia, noting that there are possibilities for growth. “In 2013, trade between the two countries amounted to US$ 426 million. That is still a fairly low volume. We truly believe there are opportunities for business to increase on both sides,” he stated.
Michel Alaby, the Arab Chamber CEO, highlighted the importance of Brazilian companies being international-minded, i.e. setting up operations in another country. “Exports from Brazil (to Tunisia) hinge mostly on raw materials and foods, but we could also produce foodstuffs in Tunisia, whose labour force is productive and effecetive.” As case in points of Brazilian companies already operating from the Arab country, he listed footwear company Dumond and cement manufacturer Votorantim.
Sabri Bachtobji, the Tunisian ambassador in Brasília, mentioned the event’s importance to bringing companies together. “Today’s event will help the Brazilian industry to become a privileged partner of the Tunisian industry,” he said.
Ricardo Schaefer, the executive secretary to the Brazilian Ministry of Industry, Development and Foreign Trade, spoke on Tunisia’s current political scenario and how Brazil could benefit from it. “Boosting trade and cooperation with African countries is one of the Brazilian government’s goals,” he said.
Khalil Labidi, CEO of the Tunisian Foreign Investment Promotion Agency (Fipa), mentioned the advantages available to companies once they set up a base in his country. “Tunisia offers major fiscal and financial advantages to investors. Exporting companies in Tunisia sell 70% of their output to the foreign market, and 30% locally,” he said.
The event was also attended by Rubens Hannun, the honorary consul of Tunisia in São Paulo and Arab Chamber Foreign Trade vice president, and by Heinz Huyer, honorary consul of Tunisia in the state of Rio Grande do Sul.
*Translated by Gabriel Pomerancblum
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