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BRIEFNovember 4, 2024

Ecomarc boosts the circular economy in Tunisia with the support of the TRACE program

“Nothing is lost, nothing is created, everything is transformed” is a quote from Lavoisier that perfectly illustrates the concept of the circular economy. This approach, currently growing, involves producing goods and services sustainably and efficiently while limiting the waste of resources.

The transition to a circular economy is evolving and accelerating swiftly, and many projects deserve to be praised for their positive impact. One sector in this transition is coffee, where the circular economy aims not only to reduce waste but also to create new economic opportunities and address environmental challenges. Although coffee producers are not directly involved, waste from coffee shops can be used in innovative ways, as demonstrated by the inspiring Ecomarc project in Tunisia.

The World Bank

Ecomarc Team © Marianna Martino - Microfinanza

Ecomarc is one of the first companies in the country to use spent coffee grounds as a substrate for the cultivation and local production of edible mushrooms. The company has signed an agreement with a major international brand to reuse spent coffee grounds from used capsules. Free from pesticides and synthetic products, their mushrooms are sold commercially. Launched in 2018 by Ahmed Hamdi in Medjez El Bab in the governorate of Béja, Ecomarc has also introduced the first cultivation kits for oyster mushrooms, while also producing organic fertilizers through spent coffee grounds, promoting sustainable agriculture.

Thanks to the support of the TRACE North-West Project, implemented since 2021 in the governates of Béja and Jendouba by its strategic implementing partners, Microfinanza, ACK International, and AGER, Ecomarc has been able to not only diversify its activities but also to strengthen its team. As part of this growth dynamic, the company is expected to create five additional direct jobs, demonstrating the tangible impact of the support it has received.

TRACE Ecomarc

Packaged Mushrooms Ready © The World Bank

The TRACE North-West Project is part of the TRACE Program, a Trust Fund supported by a contribution from the Kingdom of the Netherlands and managed by the World Bank. The program aims to create jobs in rural areas in the agri-food sector by boosting the productivity and resilience of small producers and the competitiveness of professional organizations and SMEs through improved access to knowledge, innovation, and financial services.

Ecomarc's trajectory has been marked by many successes, including the Food Start Programme Trophy and as one of the winners of the Machrouek Program. These distinctions highlight Ecomarc's originality and commitment to innovation and sustainability.

‘Start small, grow big’, Ahmed insisted, sending a message of hope to young people hesitating to embark on a career in entrepreneurship. The road to success is naturally strewn with pitfalls, but with perseverance and determination, dreams can become reality. Thanks to the coaching and training offered by TRACE, Ahmed has acquired new skills and has been able to develop his business by adopting sophisticated and sustainable techniques. For example, Ecomarc is now working to integrate artificial intelligence into an automated compost pasteurization tunnel, guaranteeing optimum quality while exploring new horizons.

As part of its development, Ecomarc has benefited from several training courses facilitated by the TRACE North-West Project. ‘TRACE is flexible and listens to its beneficiaries’, said Ahmed, adding that he had requested training in digital marketing to prepare for the second phase of his project, which includes the launch of a website and online sales. He now plans to diversify his business by offering kits for the general public, rather than limiting himself to wholesale sales as he does at present. ‘New doors will open’, he says, enabling him to expand his project and aim to export.

Among the support offered to Ecomarc by the TRACE North-West Project is customized coaching. With the help of a dedicated coach, TRACE assisted Ecomarc in analyzing and improving its credit application and in convincing financial institutions to grant it the loans it needed to grow.

TRACE also offered financial support with an initial grant equivalent to 14% of the material investment, which served as an equity contribution. This clever mechanism reassures financial institutions about the soundness of the project, increasing the value of the investment and discouraging opportunistic projects.

In addition, TRACE provides an in-depth risk analysis carried out jointly by the recipient and the coach. This analysis enables immaterial services to be financed through a second grant of up to 16% of the initial material investment. This second grant finances specialized training, expertise, and certifications (e.g., quality or organic labels), as well as the formalization of employment and employee insurance, strengthening environmental and social sustainability and stimulating growth.

The World Bank

Food Start Programme Trophy © Ecomarc

Ecomarc's example shows that the circular economy is not only economically viable but also beneficial for the environment and the local economy. TRACE actively supports such initiatives and to contribute to the transition towards a more sustainable economy.