The African Development Bank (AfDB) on Thursday granted Tunisia $17 million to finance the project to promote agroforestry and restore degraded forest landscapes (PARFD) in the governorates of Beja, Siliana and Bizerte.
The financing agreement, signed by Feryel Ouerghi, Minister of Economy and Planning, and Malinne Blomberg, Deputy Managing Director for North Africa at the AfDB, includes a $14 million loan and a $3 million grant.
The financing will be provided by the AfDB’s Strategic Climate Fund under the Forest Investment Programme (FIP).
The loan carries a fixed annual interest rate of 1.11% and is repayable over 20 years, with an 8-year grace period.
The project to promote agroforestry and restore degraded forest landscapes in Tunisia will be implemented over the period 2024-2029 by the General Directorate of Forestry at the Ministry of Agriculture, Water Resources and Fisheries.
The Minister noted that this project is important in terms of inclusive and sustainable investment, aimed at reducing poverty, creating wealth and improving the country’s carbon footprint through the implementation of income-generating activities.
It will also strengthen forest fire-fighting resources and establish an early warning system to preserve natural resources.
In terms of socio-economic impact, the project will help improve the living conditions of some 42,000 people and create some 2,200 new direct and indirect jobs.
