Applying good agricultural practices in Tunisia
Towards the widespread use of green loans
Enda Tamweel is a Tunisian MFI committed to making its customers' companies more energy efficient. To this end, ADA supported Enda in 2019 in developing a green loan – so-called “Eco-shems” – to finance solar powered irrigation systems for date palm producers.
After the loan was introduced in six branches in the south of the country, Enda extended the pilot to three more branches in 2021 and trained 89 loan officers in an online sizing tool developed with MicroEnergy. The tool is used to assess customer’s energy needs and to draw up a quote accordingly for the installation of photovoltaic panels. In late 2021, 106 Eco-shems totalling €539,997 had been granted since the start of the project.
A support programme to ensure the proper use of the loans
The installation of irrigation systems resulted in over-pumping due to the low cost of solar power compared to diesel, the fuel traditionally employed. This over-extraction of aquatic resources is harmful to the environment and can lead to crop disease. The over-watering of date palms led the grass around the trees to grow, causing the proliferation of mites responsible for a loss of 30-50% of date harvests. Enda and ADA therefore recruited the consultancy firm ALCA to provide a technical assistance programme in support of Eco-shems. This programme provided group-based training in the plantations. Producers learned how to properly manage water resources, in particular through drip irrigation, as well as weed control techniques and ways to combat dust mites. The training was followed by six months of individual support (coaching) for each participant. A total of 41 producers received this technical assistance.
“ADA helped us carry out market research to understand our target’s green finance needs and put us in touch with local stakeholders.
We learned about the potential of sustainable finance in our portfolio and put it into practice.”
Kheireddine Kahia
Head of Agricultural and Environmental Strategy at Enda
The institution becomes autonomous
ADA carried out a study to show that the Eco-shems product was profitable, and that an accompanying technical assistance programme was required to optimise its use and mitigate risks. ADA ended its support in late 2021. Enda is now trained and equipped to independently expand the marketing of the product to all its branches. In 2022, the MFI plans to diversify the use of the Eco-shems loan, in particular for the acquisition of solar-powered refrigerators.