Strengthening access to finance & investments for farmer organisations in Tunisia

The agricultural sector plays a key role in the Tunisian economy by contributing >9% to the GDP, ensuring a high degree in food self-sufficiency and contributing to 10% of national exports. Almost 15% of the Tunisian population makes a living in agricultural activities.

The sector is characterized by fragmented land where 75% of the farms cultivate less than 10ha and family farming remains the dominant management method. Traditional farming practices and mixed farming systems are dominant in the sector, where the type of crop depends on the region but often includes olive groves, cereals, fodder crops, legumes and is combined with livestock production (cattle, dairy, sheep, poultry). Farmers are confronted to comply with increasing quality standards, traceability schemes and asked to provide increased quantities and stable supplies.

The depreciation of the Tunisian dinar and rising prices for inputs and technology further rise production costs, while largely state-regulated food prices further reduce already low profit margins. As a result, SMEs and farmers lack the opportunities to invest in innovation and exploit economies of scale. In the view of these structural problems and the lack of attractiveness, the agricultural sector experiences a lack of competitiveness, innovativeness and massive obsolescence.

Objective of the project:

Under the Project Economie Agricole Durable – PEAD, improve the level of knowledge of FOs and SMEs about suitable financing options and strengthen their capacity to such an extent that they can apply for appropriate financing instruments.