The Tunisian construction industry has voiced concerns over the government’s decision to cut cement subsides in June 2014, according to reports in the local media. This will be the second subsidy reduction, after an initial cut in January 2014. The cuts could potentially lead to a rise in construction and housing costs in the country.
Kamel Bennaceur, the Tunisian Minister of Industry, told the National Constituent Assembly that the government had cut half the financial support for the cement industry in January and that the residual half will be cut in June. The Prime Minister, Mehdi Jomaa, previously commented that he would make use of the funding in ways that would benefit consumers.
The construction sector has voiced concerns over the cuts. Industry insiders said that the decision to cut financial support for the cement industry is likely to result in an increase in housing prices. The cost of a bag of cement currently stands at around TND7.7. The reduction in funding announced in January will reportedly lead to an increase in price to approximately TND10 and this could reach TND13 following the cut in June.
Edited from various sources by Rosalie Starling