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July 7, 2024 | 10 months ago
The agreement with the Italian company Bonifiche Ferraresi was concluded yesterday for $420 million for the production of cereals and legumes in Timimoun.
The objective of this project, initiated under the Mattei Africa Foundation program and spanning from 2024 to 2028, is to provide Algeria with a complete agri-food chain, from seed supply to industrial production derived from crops (especially cereals and legumes), including pasta manufacturing.
An agreement was announced several weeks ago by the Algerian Investment Promotion Agency (AAPI) and confirmed in mid-June following the visit of President Abdelmadjid Tebboune to Italy for the G7 summit. The framework agreement for the Algerian-Italian mega-project in agriculture was signed yesterday in Algiers. The ceremony was attended by the Minister of Agriculture and Rural Development, Youcef Cherfa, his Italian counterpart Francesco Lollobrigida, and the Minister of Finance, Laaziz Faid.
Valued at $420 million, the investment is planned for southern Algeria, specifically in the Timimoun region, covering an area of 36,000 hectares. Of this, 35,450 hectares will be allocated to wheat and legume production, while the remaining area will house a pasta factory and other accompanying infrastructure for this integrated project. The project aims to create 6,700 jobs, including 1,600 permanent positions.
The Italian partner, Bonifiche Ferraresi (BF), which already holds a 900-hectare agricultural concession in Ouargla, plans to employ advanced agronomic techniques such as crop rotation to optimize agricultural yields, particularly in cereal production.
Additionally, the project includes a component focused on training and technical cooperation, particularly related to the Green Dam and all aspects of combating desertification, stabilizing sand dunes, and adapting to climate change.
Initiated under the Mattei Africa Foundation program and spanning from 2024 to 2028, the project aims to establish a complete agri-food chain for Algeria, from seed supply to industrial production derived from crops, including the production of pasta.
Furthermore, the project seeks to "consolidate and strengthen the historically excellent bilateral relations between Algeria and Italy on all fronts, and to accelerate the national economic process towards achieving self-sufficiency," as highlighted in the presidential statement on June 15 and reiterated in the Agriculture Minister's speech yesterday.
This strategic agreement underscores the importance of the project in enhancing economic ties between the two countries. It follows President Abdelmadjid Tebboune's participation in the G7 Summit in Bari, Italy. The project aligns with the national program for developing strategic sectors, as emphasized by the Agriculture Minister, who noted it as the second largest agricultural project to commence shortly after the agreement with Qatar's Baladna for powdered milk production in Adrar.
The accord comes three months after the agreement with Baladna, reflecting the government's commitment to opening the agricultural sector to foreign investment, especially in the South where favorable conditions prevail. The goal is to expand the agricultural area in the South to 500,000 hectares with a yield target of 55 quintals per hectare, aiming for wheat self-sufficiency by 2027.
Minister Cherfa stressed the importance of focusing on mega-projects to achieve these objectives. Finance Minister Laaziz Faid, speaking on the sidelines of the ceremony, expressed hope for increased cooperation between Algeria and Italy to meet current demands, particularly following the Algerian-Italian Business Forum. He highlighted efforts to support the project through the National Investment Fund (FNI), which holds 49% of the capital equivalent to 14.8 billion Algerian dinars.
July 10, 2024 | 
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