Algeria partners with Saudi investor for US$89.6M agricultural project

ALGERIA – Algeria, under its representative Dutafic Algérie, has partnered with a Saudi investor to invest 12 billion dinars (US$89.6 million) in a large-scale agricultural development project in the Wilaya of El Meniaa, located in the southern part of the country.

This initiative aims to bolster local production of wheat and dairy products as consumption of these commodities continues to rise.

Reports indicate that the initiative plans to develop 20,000 hectares of farmland in the El-Mehareg El-Homr agricultural perimeter.  

According to Azzouz Moussiou, manager of Dutafic Algeria, the project will focus on the cultivation of strategic crops, including wheat, and the establishment of a dairy farm capable of accommodating 2,000 cows.

The Saudi company representative, Ali Ben Ahmed El-Messahili, indicated, for his part, that the project aims to develop wheat cultivation and cattle breeding, taking advantage of the significant potential offered by the El-Menea region, including arable land and the abundance of underground and freshwater resources.

The initiative is crucial for Algeria, where food imports account for a significant portion of domestic consumption.

According to the Food and Agriculture Organization (FAO), the country imported an average of 8 million tonnes of wheat annually between 2020 and 2023, which accounted for 72% of its total wheat consumption.

Similarly, Algeria imports nearly half of its dairy products, with average yearly consumption exceeding 6.5 million tonnes over the same period.

The Dutafic project is the second large-scale agricultural development announced in El Meniaa within a month.

In September, Qatari company Al Rayan expressed its intention to develop an irrigated agricultural area covering 1,811 hectares in Hassi El F’hel, also within the Wilaya of El Meniaa.

The rise in foreign-backed agricultural investments reflects the region’s strategic importance and its potential for addressing Algeria’s food security challenges.

In June, the country’s Minister of Agriculture and Rural Development, Youcef Cherfa, unveiled a comprehensive plan set by the government to achieve self-sufficiency in durum wheat by 2027.

This ambitious goal is part of the National Strategic Crop Development Plan to bolster the country’s agricultural output and ensure food security.

Central to this plan is the construction of 30 grain storage silos starting in July, with a combined capacity of 30 million quintals.

According to him, this significant investment in storage infrastructure is essential for achieving and maintaining the target of complete self-sufficiency in durum wheat.

The new investment law, which facilitates partnerships with foreign companies, plays a crucial role in this initiative.

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