The Tunisian Forum for Economic and Social Rights (FTDES) has just published a survey shedding light on the ‘predominant’ role played by the solidarity and social economy (SSE) in the creation of economic and social value.
This is ‘an alternative, cooperative and collaborative model that engages support structures and social enterprises to contribute to local development and social stability in the regions,’ says the Forum.
In this survey, titled: ‘The role of the solidarity and social economy in the regions: Case study of the governorate of Kasserine,’ the FTDES gives the example of the SMSA El-Wafa mutual agricultural services company, which has managed to create wealth and jobs by integrating farmers into the SSE.
Specialising in growing tomatoes, which are sold to an intermediary who transforms the harvest into dried tomatoes for export to Italy, the company has also succeeded in improving its operating techniques, management methods and financial indicators, which has helped it ‘generate substantial resources and create economic and social value.’
Before joining the social and solidarity economy approach, the farmers of this SMSA were suffering from a number of economic problems, including the high cost of raw materials and low yearly production.
When they joined the SSE, production increased by 66.7%.
The number of members increased from 6 to 87 farmers, and the number of jobs created rose to 84.
Farmers have also succeeded in developing their production, drying and packaging techniques by improving their premises, spaces and cultivable land, and by acquiring irrigation, planting and fertilisation materials, as well as renovating the operating process (supply-production-distribution).
The increase in tomato production has been coupled with a diversification of the dried tomato product range, since SMSA produces, packages and markets two products: dried tomatoes and dried tomato powder.
In financial terms, El Wafa has managed to improve its financial result, which was in deficit, and to make a profit in the financial years 2020 and 2021.
Thanks to this approach, the company has certified its products.
In the short term, this technical recognition has enabled SMSA to increase domestic sales revenue by 30% compared with last year and to integrate 35 new members.
In the long term, certification will help the company take another step towards launching an international business.
