Upgraded business model integrating agroecological principles: Financing Mechanisms for the Agricultural Sector in the Elles Community, Kef, Northwest Tunisia

Abstract

The agricultural sector in Tunisia plays a vital role in the national economy, contributing to wealth creation, food security, and employment. Despite its importance, the sector faces numerous structural and financial challenges, particularly regarding access to adequate and sustainable financing. This report examines the various financing instruments available to Tunisia’s agricultural sector, outlines key challenges, and proposes innovative approaches to improve financial inclusion and resilience. The Kef Governorate, located in Northwestern Tunisia, features a diverse agricultural landscape that includes cereals, fruits, vegetables, and livestock. Despite benefiting from favorable agro-climatic conditions, agricultural productivity in the region remains relatively low, primarily due to insufficient financing mechanisms. Small and medium-sized farms (SMEs), which make up a significant portion of Tunisia’s agricultural sector, often face substantial financial constraints that hinder investment and innovation. In this context, the Multifunctional Landscapes (MFL) Science Program, particularly Area of Work 3 (AoW3) titled Markets and Business Models, aims to support the understanding and improvement of agricultural financing mechanisms to enable farmers to adopt sustainable practices and invest in resilient value chains.