World Bank Approves $520 Million in Loans to Address Tunisia’s Food Security Challenge and Regional Disparities

The World Bank's Board of Directors recently greenlit two new loans totaling US$520 million to tackle Tunisia's food security issue and improve road corridor connectivity to reduce regional disparities in the country. According to Alexandre Arrobbio, the World Bank Country Manager for Tunisia, these projects are in line with the World Bank's Country Partnership Framework (CPF) 2023-2027 for Tunisia, focusing on enhancing human capital and boosting economic opportunities nationwide. ## Addressing Food Security Challenges A loan of US$300 million will bolster the Emergency Food Security Response Project, which aims to mitigate the impact of four years of drought in Tunisia, including a disastrous cereal harvest in 2023. The project seeks to streamline wheat imports, support small-scale producers by providing barley for milk production, and distribute climate-resilient seeds to wheat farmers. This funding is part of a comprehensive effort with other development partners to enhance the country's resilience to future food-related challenges. Since the approval of the food security project in June 2022, the Tunisian government has been working to revamp the country's grain sector. Initiatives include measures to increase domestic production, reduce food waste, enhance the value chain of cereals, and manage production risks related to drought. The project has already benefited thousands of dairy and smallholder farmers, as well as ensured a steady supply of bread through the provision of soft wheat. ## Enhancing Regional Connectivity The second loan, amounting to US$220 million, is allocated to the Tunisia Economic Development Corridor project, which aims to bridge regional economic disparities along the Kasserine - Sidi Bouzid - Sfax corridor. The project will focus on developing infrastructure along the corridor, including 65 km of roadworks and the upgrade of 117 km of feeder roads to improve physical access. Additionally, the project will capitalize the Deposit and Consignment Fund's (CDC) Impact Fund to enhance access to finance for small and medium-sized enterprises (SMEs) in the region. This project is expected to benefit households dependent on road access for mobility, businesses relying on corridor connectivity, SMEs with improved access to finance, and women with enhanced access to agricultural lands and better financing opportunities. In conclusion, these loans from the World Bank aim to not only address immediate challenges in Tunisia's food security but also work towards reducing regional disparities and fostering economic development across different sectors in the country.