Italy and Algeria Seal $450M Deal to Boost Food Security
On 3 July 2024, Italy and Algeria signed a EUR 420 million agreement to enhance #FoodSecurity. At the signing ceremony, the Algerian side was represented by Ministers of Agriculture and Finance, Youssef Charfa and Aziz Faye, respectively.
On the other hand, the Italian side was represented by Italian Minister of Agriculture Francesco Lollobrigida and Bonifiche Ferraresi CEO Federico Vecchioni.
The Italian company Bonifiche Ferraresi (BF) and Algerian National Investment Fund (NIF) partnered to develop a 36,000-hectare farm in Timimoun State in Algeria. The actual agreement was signed by Best Fields, a subsidiary of BF SpA, the Agricultural Investment Fund of Algeria and the Algerian Ministry of Agriculture.
As per agreement, Best Foods will hold a 51% controlling stake while the remaining 49% will be split between the Algerian entities.
“Africa and Europe are pillars for ensuring #FoodSecurity, with all parties looking at and addressing the major issues in an attempt to resolve them with a common sense of commitment.”
Italian Minister of Agriculture Francesco Lollobrigida
The farm is expected to grow cereals and pulses. Some 70% of the land will be dedicated to either durum wheat or soft wheat, while the remaining area will grow lentils, chickpeas and other beans.
Additionally, a pasta factory, storage facility and seed facility are also on the drawing board. The Project is expected to generate 6,700 employment opportunities.
The project is in line with Algeria’s plan to achieve self-sufficiency in wheat by increasing cultivation are to 500,000 hectares. Currently, Algeria only utilizes 17% of its available land and is the world’s 5th largest import of wheat in 2023.
The Italian side highlighted that the project follows the spirit of the #MatteiPlan. The Plan was updated and presented during the recent Italy-Africa Leaders Summit (#IALS2024), whereby Italian PM Meloni pledged some EUR 5.5 billion for Africa.