Analysis of water saving investment of agricultural sector in Tunisia

Abstract

This study aims to evaluate the performance of the National Program for Water Economy in Irrigation (NPWEI), which has been implemented in Tunisia since 1995, and to assess the impact of water-saving investments on agricultural water productivity. To achieve these objectives, two approaches were adopted. First, descriptive analysis was used to estimate the differences in water consumption, crop yields, and gross margins between traditional and modern irrigation systems. Second, an econometric model was used to assess the impact of investments in water-saving technologies on water productivity. Drip irrigation systems were found to lower the average water consumption of the crops studied by approximately 5.200 cubic meters per hectare annually. In addition, agricultural yields increased significantly by 30% in arboriculture and about 60% in vegetable and cereal crops. The productivity gains resulted in an average additional gross margin of nearly 2.000 TND/ ha, across various crops. Econometric analysis shows that water-saving investments have a positive impact on water productivity that is statistically significant at the 5% level. Based on these findings, several policy recommendations are proposed. These include enhancing farmer training and extension services, improving access to high-quality irrigation equipment, and adjusting financial support mechanisms such as microcredit and subsidies to better benefit smallholder farmers and young rural entrepreneurs. Finally, strengthening institutional coordination between water users’ associations and agricultural development actors is essential to promote sustainable use of water resources.

Keywords

• NPWEI
• Irrigation
• water saving investment
• efficiency
• Tunisia