Tunisia: More Rationing, Price Increases as Water Supply Strained

by | Mar 3, 2024 | Economic, Social, Tunisia

Summary:

On 28 February 2024, an official responsible for rural water resources announced that restrictions on the use of potable water distributed by SONEDE will continue for the foreseeable future. 

The restrictions include the use of potable water for agricultural use, watering green spaces, and washing vehicles. 

On 1 March, the government officially announced that prices for Tunisia’s drinking water could rise by as much as 16% due to the ongoing drought. The percentage increase will depend on usage, with the price increasing as the volume used rises. 

These announcements come following several heavy winter rains and reports that dam fill rates have risen, particularly in the northern parts of the country. However, dam fill rates further south and on Cap Bon remain low, in some cases below 10% of capacity. Overall fill rates across Tunisia were reported at around 35% by government sources.  

Outlook:  

The multi-year drought continues to have numerous impacts across Tunisia’s economy which relies heavily on agricultural production. With dams filling only slightly through the winter months, which provide the bulk of the country’s rainfall, another challenging agricultural year is expected. 

While immediate impacts are felt acutely in Tunisia’s rural areas where entire communities are dependent on farming for their livelihoods, additional impacts are felt throughout the country as prices fluctuate and the government’s budget is strained in attempts to import supplies to make up for lagging production. 

With no immediate solutions on the horizon, this issue will continue to play a central role in Tunisia’s economic story throughout 2024 and will only raise the risk of catastrophic economic risk as time continues to pass without structural reforms to the economy. 

 


 

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