Economics & Development

Tunisia is among the Mediterranean’s most climate-exposed countries facing acute water scarcity. Although a growing literature has documented the effects of extreme weather on firms, few studies have used longitudinal administrative data to track how business performance evolves over time. This paper draws on about two decades of firm-level records from Tunisia’s formal business registry (Répertoire National des Entreprises), linking firm locations to satellite-based precipitation measures at the delegation level, which is Tunisia’s second-level administrative unit. Using more than 1 million firm-year observations, the study finds that droughts—defined as negative precipitation shocks—reduce total revenues and revenues per worker by approximately 12 and 11 percent, respectively. Large formal firms, non-exporting firms, and domestic firms are disproportionately vulnerable. The results are robust across a range of sensitivity analyses.

The development objective of the Dar es Salaam Port Improvement Project is to enhance port capacity, operational efficiency, and maritime infrastructure through the deepening and strengthening of Berths 8-11, associated electrical works, and improvements to the Ro-Ro yard and container terminal. Some of the negative impacts and mitigation measures include: (1) strengthening vessel traffic management systems, navigation coordination, and emergency spill preparedness to address increased marine traffic and navigation risks; (2) conducting continuous water-quality monitoring during dredging activities and enforcing spill prevention and waste-control measures to manage turbidity and pollution; (3) monitoring sediment quality and implementing strict dredged-material management procedures prior to disposal; (4) tracking offshore disposal-site conditions, plume behavior, and seabed deposition to prevent impacts on sensitive marine environments; (5) applying sediment plume controls and adaptive management measures to protect coral reefs, seagrass beds, mangroves, and other sensitive habitats; (6) providing advance notice and communication to fishers, maintaining grievance mechanisms, and implementing phased works to reduce disruption to fisheries; (7) implementing traffic management plans, dust suppression measures, road-safety controls, and speed restrictions to minimize community impacts; and (8) maintaining oil spill contingency plans, emergency response capacity, routine drills, and contractor spill-prevention procedures to address marine pollution risks, while supporting local employment, stakeholder engagement, and long-term economic benefits from improved port operations.