Rural futures in focus: Tunisia

After years of impressive poverty reduction, the ongoing consequences of the triple crisis of climate change, COVID-19 and the war in Ukraine have led to a decline in Tunisia’s macro-economic indicators. In its rural areas, small-scale farmers are working hard to build resilience and transform the country’s food systems for the better.

Following a visit by IFAD's Executive Board, we caught up with our Country Director for Tunisia, Philippe Remy, to learn more about the country's present challenges and future opportunities.

Over the past three years, rural Tunisia has faced significant challenges due to the pandemic, the war in Ukraine and climate change.

While COVID-19 affected all sectors in Tunisia, it had a particularly severe impact on poor households and small-scale farms. Just as the country was poised for recovery, it was further destabilized by the economic turmoil resulting from the war in Ukraine. The ensuing disruption of the national cereal supply contributed to a spike in prices, exacerbated by rising oil costs.

Though the overall poverty rate has significantly reduced, from 20 per cent in 2010 to 15 per cent in 2018, a slight increase has been registered after recent crises. There remain large disparities between regions rich in natural resources, such as the north-east, and those which are environmentally fragile, such as the mountainous areas to the west.

Rural poverty affects access to transport, education, health, employment and housing. Small-scale farmers face challenges such as limited access to financial services, climate adaptation and training, all of which would enable them to further advance their own development.

Meanwhile, Tunisia is among the countries most affected by climate change, with strong degradation of natural resources and a decrease in agricultural production. Rural communities are once again the worst hit, particularly in areas where poverty is highest.

There has been a daunting depletion of water resources and the situation continues to worsen, despite recent rainfalls. The filling rate of the dams in the north is continuously declining and has fallen below 23 per cent this year.

Agriculture occupies an essential place in the Tunisian economy. This means that the development of inclusive agricultural value chains that involve all stakeholders – from small-scale farmers to the private sector and government – while preserving the interests of vulnerable groups, is crucial for a prosperous and food-secure future. This is particularly pressing in regions affected by poverty, unemployment and degradation of natural resources.

There are significant opportunities to integrate poor rural people into more structured value chains by strengthening organizations, building storage and processing infrastructure, and financing economic activities. This would lead to better operations and increased agricultural incomes.

Gender inequality and youth employment remain an issue, but the presence of motivated women and youth must also be considered as an opportunity to tap into.  If supported, these crucial groups can integrate into the economy, improving rural livelihoods and resilience to climate change across the board.

Additionally, there are numerous opportunities to enhance private sector involvement in rural value chains and boost their linkages with small-scale farming groups. Working directly with private enterprises, building strategic partnerships for the development of promising local products, and strengthening the capacity of farmers’ organizations to engage in economic activities are all avenues to induce the transformation of Tunisian agriculture.

The EB visit was a significant opportunity to showcase the successful partnership between IFAD and the Tunisian government, as demonstrated by our projects' progress and their impact on rural people in Tunisia. The delegation visited the Agropastoral Value Chains Project (PRODEFIL) in Médenine, in the south, and the Economic, Social and Solidarity Project (IESS) in Kairouan, in the north.

In Médenine, the delegation saw how – despite economic challenges and dire climate change impacts – PRODEFIL has improved agropastoral livelihoods by enhancing rangeland and livestock productivity. Board members were impressed by rural people's diverse entrepreneurship based on local innovations.

PRODEFIL was closed last year, but board members were optimistic about its sustainability. The project shows encouraging signs of long-term impact thanks to the support of local authorities and an empowered younger generation. However, to scale up the innovations generated in Médenine and to finalize a recently drafted law on rangeland management, EB members agreed there must be continued government support and greater interest at the national level.

“Although a year is a very short time to assess the sustainability of the project, what we saw suggests that there is a great potential for the project impact to continue for a long time,” Yaya Olaniran, Head of the EB delegation, told me.

In Kairouan, meanwhile, EB members saw how the IESS project is empowering vulnerable communities by boosting local value chains and increasing rural incomes. IESS emphasizes what is known as a graduation approach, which enables poor households to transition sustainably out of poverty.

The delegation saw how the project is testing effective coordination between Tunisia's ministries of Agriculture and Social Affairs. By combining social and economic support at the local level, this will aim to improve the sustainability and impact of the project.

The visit reaffirmed the strong partnership between IFAD and the Government of Tunisia. We remain committed to addressing sustainability, climate change, and social inclusion, and look forward to continuing our collaborative efforts to improve rural lives in Tunisia.