Tunis:A Cabinet meeting led by Prime Minister Sarra Zaafrani Zenzri at the Government Palace in the Kasbah has approved a series of initiatives aimed at enhancing the success of Tunisia's olive oil sector for the 2026-2027 season.

According to Agence Tunis Afrique Presse – English, the Cabinet has allocated TND 150 million for the procurement of domestically produced olive oil and TND 20 million in concessional loans for small-scale farmers. These measures are intended to support the sector through various stages, including harvesting, processing, storage, marketing, and exports, while ensuring product quality and competitive international market presence.

Further decisions include financial backing for the National Olive Oil Office (ONH) to purchase olive oil, supported by TND 150 million in financing from both public and private banks, thus enabling the ONH to fulfill its market-regulation role effectively. Additionally, TND 20 million in concessional loans will be made available through the Tunisian Solidarity Bank for small-scale farmers, who will also have priority access to grants for mechanical harvesting equipment.

The 2027 Finance Bill introduces a TND 100 million financing facility to provide seasonal and investment loans at preferential rates through the Banque Nationale Agricole (BNA) for small-scale farmers. The National Olive Oil Office will implement a programme to store up to 60,000 tonnes of olive oil, with a storage subsidy and additional grant capped at TND 20 million.

For 2027, maritime and air freight subsidies for olive oil exporters will be maintained, with the maritime transport subsidy for bottled olive oil increasing from 50% to 60%. A programme will support startups in the olive oil export sector, enhancing their technical and export capabilities, along with a national strategy to promote Tunisian olive oil in new markets.

The Cabinet's measures also encourage the use of branded Tunisian olive oil in hotels and restaurants, and promote the sale of bottled olive oil at consumer-friendly prices. Training and technical support for farmers in quality management and other areas will be intensified, with banks urged to assist in financing needs. The Central Bank of Tunisia will engage with banks to support small farmers and reschedule debts.

Additionally, regulatory amendments will extend export subsidy eligibility to larger containers, and strategic studies will be conducted to further develop the olive oil sector, alongside a restructuring plan for the National Olive Oil Office.