I. Context
The unemployment rate in Tunisia reached 16.2% in the first quarter of 2024, with 22% for women and 39.2% for youth. One of the main factors for unemployment is the skills mismatch, which is particularly evident in the agri-food sector, as private firms struggle to find technicians for specialized tasks like tree pruning and primary veterinary care. The levels of informal work are also high – out of 3.5 million employed workers in the country, 46 percent work informally. These informal workers are neither covered by medical insurance nor pension schemes. The proportion of workers being self-employed or owning a microenterprise is higher in the interior and southern regions than in the wealthier coastal areas.
Tunisia's agri-food sector remains an essential driver of economic growth and job creation. This sector still represents a crucial source of income and employment, especially in the interior and rural regions. One out of six jobs remain in the agri-food sector. Most of these jobs are informal and focus on producing crops, livestock, and other products derived from land and natural resources. The magnitude of entrepreneurship in the agri-food systems could be higher, limiting the potential for creating higher value and better-quality jobs. Furthermore, the average age of farmers is above 50 as agricultural activities attract few young people in rural areas. Nevertheless, the agri-food sector continues to represent a potential source of additional growth and employment, especially for youth and women.
II. The Nexus Project
The Nexus Skills and Jobs for Youth Project aims to enhance the economic inclusion of women and youth in Tunisia's agricultural sector. Nexus was launched in 2023 under the TRACE (Tunisian Rural and Agricultural Chains of Employment) Program, which is part of the Tunisia Economic Resilience & Inclusion (TERI) Umbrella Program 2.0. The Project supports the Agricultural Vocational Training Agency (AVFA)1, the National Agency for Employment and Self-Employment (ANETI)2, and the National Observatory for Employment and Qualifications (ONEQ)3. Through a partnership between the World Bank and the Netherlands, US$5 million has been mobilized to support the implementation of Nexus. The main objective of the Project is to create economic opportunities for youth and women in the agri-food sector by re-aligning the skills taught by agricultural vocational training programs with private sector needs.