(Ecofin Agency) - The European Bank for Reconstruction and Development announced it will lend Tunisia $5 million to help it develop its olive oil production sector.

The financing which will be directed to Sovena MENA and Tiba Foods, subsidiaries of Sovena, to allow them to expand their olive oil supply networks and boost their production capacity for export-directed bottled oil.

The facility thus goes into a strategic sector since Tunisia’s olive oil exports represent 40% of its agricultural exports. The country which usually produces between 150 and 250 thousand tons of oil, exports about 80-90% of this volume. This year EBRD’s support could help Tunisian exports to compensate low production in countries like Italy where fruit fly ravaged harvested olive.

Tunisia is the world’s third largest olive oil producer, behind Spain and Italy.

Aaron Akinocho