The Groupe Oléicole Tunisien (CHO Group) in Tunisia is set to receive US $26million grant from the International Finance Corporation to help strengthen linkages with farmers and create new jobs.
The CHO Group, one of Tunisia’s largest olive oil producers and exporters, will help the company expand production and create jobs in the agriculture sector as Tunisia recovers from the economic effects of COVID-19.
Besides financing, IFC will also provide advisory services to small-holder olive farmers in CHO’s supply chain to help them improve productivity. This will include training in the use of sustainable agricultural practices, including micro-irrigation techniques, which are expected to boost farmers’ resilience to climate shocks and reduce the volatility of production.
The olive oil industry is a crucial part of Tunisia’s rural economy. More than 13% of Tunisia’s population is reliant on all types of agriculture for employment. CHO employees more than 720 people directly and supports about 140,000 farmers in its supply chain.
Second-largest exporter
“Olives are the lifeblood of many rural communities across Tunisia, the second-largest exporter of olive oil in the world. This partnership with IFC will help CHO grow and further promote our brand, Terra Delyssa, creating opportunities in the regions that need them most,” said Rym Makhloufi, CHO’s Deputy General Manager.
“Supporting a company like CHO and the thousands of farmers who rely on it for their livelihoods will help create jobs and rekindle economic growth as Tunisia’s recovers from COVID-19,IFC’s long-term financing, with an eight-year tenor, is a strong testament to our additionality in the Tunisian market as a counter cyclical development partner,” said Georges Joseph Ghorra, IFC’s Resident Representative in Tunisia.
IFC has committed more than US $1 billion from its own account in Tunisia, helping to improve the environment for private sector-driven job creation, creating economic opportunities in lagging regions, and building skills development.
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