25 million euros to support sustainable agricultural projects

By:Mohamed Ben Abderrazek 

A support fund of approximately 25 million euros has been established to facilitate the development of sustainable business projects in the fields of agriculture, fishing, and aquaculture.

This support fund for sustainable development in the agriculture and artisanal fishing sectors in Tunisia, known as ADAPT (Agriculture and Artisanal Fishing Development Assistance Program), is funded by the European Union (EU) and is being implemented in collaboration with the Italian Agency for Development Cooperation, in partnership with the World Food Program.

The fund’s initiatives are designed to benefit agricultural and artisanal fishing operators, small and medium-sized enterprises (SMEs/SMIs) within the agri-food and aquaculture sectors, as well as cooperative agricultural and/or fishing organizations, through the ADAPT financial instrument, in addition to traditional credit.

When applying for financial credit through ADAPT, beneficiaries receive a 14% contribution in the form of a grant. The maximum funding limit per project leader is set at 70,000 euros (equivalent to 236,000 dinars), and this funding can be combined with other financial support mechanisms.

For businesses, the advantages are substantial, including the receipt of a grant combined with an investment in sustainable development. This translates into reduced financial expenses related to bank credit and decreased requirements for collateral when seeking financing.

The fund managers assert that the initiative aims to enhance a company’s competitiveness and boost the value of its products by cutting production costs through the utilization of renewable energy sources. This approach not only helps companies adapt to climate change but also contributes to the well-being of the broader community.

It’s worth noting that the ADAPT program, fully financed by the EU with 44.4 million euros and signed in 2020 with funding extending through 2028, places a strong emphasis on private investments as a catalyst for economic, social, and environmental progress.

In December 2022, following the Russian-Ukrainian crisis, a new contract worth 24.8 million euros was inked with the EU intended to support the cereal sector. The total budget for the program is currently 70 million euros.