Tunisia Allocates $786.1 Million for Water Projects in 2027 Budget

Tunisia's Prime Minister, Sara Al-Zafrani Al-Zanzeri, has emphasized the government's focus on food, water, and energy security, as well as environmental protection, as key areas for development in 2027. This focus is part of a broader strategy to strengthen national sovereignty and self-reliance. The government's priorities include supporting the agricultural sector, which plays a crucial role in achieving national security and promoting self-sufficiency.

To support the agricultural sector, the government has introduced a new financing line worth $100 million for the period between 2027 and 2030. This financing aims to provide loans with favorable conditions to small farmers and cooperative companies involved in olive oil production. Additionally, the government has announced plans to implement a program to rebuild the national herd of cattle and small ruminants over four years, from 2027 to 2030, with allocated funds of approximately $93 million for 2027.

Tunisia is also set to conduct its first digital agricultural census, which will take place during the 2026-2027 agricultural season and be completed before the start of the 2027-2028 season. This census aims to provide a comprehensive overview of the country's agricultural sector and inform future development strategies. In the water sector, the government has allocated a total of $786.1 million for 2027 to continue implementing major water projects and infrastructure.

The water projects include the ongoing construction of the Mlaq Al-Alawi dam, increasing the storage capacity of the Bou-Hartma dam, and upgrading the Medjerda-Kebeli canal. Other projects involve the construction of reservoirs in Al-Saeeda and Al-Qal'a Al-Kubra, as well as dams in Khalid and Al-Rghay. Furthermore, the government will continue expanding seawater desalination plants in Al-Zarate and Djerba, and completing the Sfax plant.

In the energy sector, the government expects an improvement in oil production in 2027, following a decline in previous years, with the start of production in the "Cosmos" field. Regarding renewable energy, three solar energy projects with a total capacity of 200 megawatts began operating in the first half of 2026. The government is also working on constructing solar power plants in Sidi Bouzid, Qafsa, and Gabes, with a total capacity of 600 megawatts.

The government has announced plans to launch a new licensing round for the production of 455 megawatts of solar energy. These initiatives aim to increase the share of renewable energy in the country's energy mix and reduce dependence on imported energy sources. The government's focus on renewable energy is part of a broader strategy to promote sustainable development and reduce the country's carbon footprint.

The 2027 budget reflects the government's commitment to addressing key challenges facing the country, including food, water, and energy security. The allocation of $786.1 million for water projects and other development initiatives demonstrates the government's efforts to promote sustainable development and improve the living standards of Tunisian citizens. The implementation of these projects is expected to have a positive impact on the country's economy and environment.

Key points

• The Tunisian government has allocated $786.1 million for water projects in 2027.
• A new financing line worth $100 million has been introduced to support small farmers and cooperative companies involved in olive oil production.
• Tunisia is set to conduct its first digital agricultural census during the 2026-2027 agricultural season.