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Tunisia’s nextProtein Faces Major Setback Following Factory Fire and Regulatory Shutdown

Franco-Tunisian biotechnology startup nextProtein is facing a major operational crisis in Tunisia after a fire destroyed its new production facility and authorities suspended operations at its existing factory.

The developments have disrupted the company’s expansion plans and raised concerns about regulatory uncertainty, environmental oversight, and the future of foreign-backed climate technology projects in the country.

Founded in 2015 by Tunisian entrepreneurs Mohamed Gastli and Syrine Chaalala, nextProtein develops alternative protein ingredients for animal feed using black soldier fly larvae.

Its production model converts organic waste into insect-based protein, offering an alternative to conventional feed ingredients such as fishmeal and soybean meal.

On October 21, 2026, a fire destroyed the company’s second production facility in Menzel Bouzelfa, located in Tunisia’s Nabeul governorate.

The factory was still undergoing equipment installation and had not begun commercial production when the incident occurred.

The destruction followed escalating tensions involving local residents, environmental campaigners, and the company.

Hours before the fire, a local resident died in a road accident near the facility. Protesters alleged a connection between the accident and a company event, while nextProtein maintained that the incident occurred outside its premises.

Separately, on October 16, regional authorities suspended operations and revoked the operating licence of nextProtein’s original factory in Grombalia.

The facility had operated since 2020 and employed approximately 70 workers.

Environmental groups and residents had raised concerns about unpleasant odours, potential pollution, and possible risks to nearby agricultural land and groundwater.

The company has rejected allegations of environmental misconduct, insisting that its operations complied with applicable requirements.

nextProtein has also challenged the regulatory decision through legal proceedings.

The crisis comes less than a year after the company secured €18 million in funding in November 2025, including investment from British International Investment, the United Kingdom’s development finance institution.

The financing was intended to support industrial expansion, including a production facility designed to manufacture up to 12,000 tonnes of insect-based ingredients annually.

With its original facility suspended and its expansion site destroyed, nextProtein now faces significant uncertainty over its operations and investment plans.

The situation highlights the challenges climate technology companies can encounter when industrial development, environmental concerns, community relations, and regulatory decisions intersect.

The outcome of the company’s legal proceedings and discussions with authorities will be important in determining its future in Tunisia.

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Grace Ashiru

Written by Grace Ashiru

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