TUNISIA— The European Bank for Reconstruction and Development (EBRD) has signed a €150.5 million (US$149.9 million) with Tunisia’s state cereals office, to fund imports of soft wheat, durum wheat and barley, representing up to 15 per cent of Tunisia’s annual consumption needs. 

As Russia’s war on Ukraine rages on, logistical issues have led to a grain export deficit of up to 18 to 22 million metric tons out of the two key exporters. This has greatly disrupted the global grain supply and caused unprecedented hikes in global soft commodity prices, undermining food security in poor importing countries.

Tunisia secures two-thirds of its grains annually through imports. To promote grain self-sufficiency in the country, the agreement also includes promises by the Office des Cereales and the Tunisian government to reform the grain sector in Tunisia.

The Bank mobilised €2 million (US$ 1.9 million) in technical assistance grants to support the preparation and implementation of a Sector and Corporate Roadmap reform in accordance with the Tunisian state-owned enterprise (SOE) reform agenda.

The objectives of the roadmap are to implement an action plan prepared by experts and involving relevant stakeholders to address current structural weaknesses of the grain sector, which will lead to a progressive liberalisation of grain imports; and to guide ODC’s reform towards its commercialisation, with improvements to operational efficiency and corporate governance standards.

The Bank mobilised €2 million (US$ 1.9 million) in technical assistance grants to implement an action plan to address current structural weaknesses of the grain sector, which will lead to a progressive liberalisation of grain imports

ODC is a state-owned company, under the supervision of Tunisia’s Ministry of Agriculture. It is in charge of international and national procurement, storage, sales and distribution of wheat in Tunisia.

The European Bank for Reconstruction and Development has been investing in Tunisia since 2012 and focuses on the development of small and medium enterprises. Since the start of its operations in Tunisia it has invested more than €1.5 billion (US$ 1.4 million) across 59 projects in the country, in both the private and public sectors.

The EBRD press release goes on to outline: “Support for small business is a priority for the EBRD in its work to strengthen the Tunisian economy. The Bank’s investments aim to support Tunisia’s competitiveness by opening markets and bolstering governance, promoting economic inclusion for women, young people and those living in remote areas, strengthening financial-sector resilience and supporting the green economy transition.”

Most recently the Bank facilitated, through its partner, Attijari Bank Tunisia, access to financing of up to 5 million Tunisian Dinars (approximately US$1.6 million) for a local pharmaceutical company, Laboratoires Teriak S.A.

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