ALGERIA – The Algerian Investment Promotion Agency (AAPI), in collaboration with the Italian company Bonifiche Ferraresi (BF), has revealed plans for a major agricultural project to boost wheat production in the country.
The ambitious project, set to be established in the Wilaya of Timimoun, will be backed by the National Investment Fund (FNI) with an estimated total cost exceeding US$420 million.
Omar Rekkache, AAPI’s General Director, announced the initiative on June 3, highlighting the strategic partnership aimed at enhancing the nation’s cereal production.
Currently, the North African country relies on imports for more than 75% of its wheat needs.
The primary focus of the new project will be cultivating cereals over an expansive 36,000 hectares as part of Algeria’s broader strategy to reduce its dependency on wheat imports and strengthen food security.
In addition, Mr. Rekkache revealed that the project includes constructing a factory for manufacturing pasta intended for export.
The successful implementation of this initiative could significantly mitigate the country’s reliance on wheat imports and contribute to the local economy by creating jobs and fostering agricultural innovation.
The announcement follows a statement made in February by Federico Vecchioni, CEO of BF, confirming BF’s investment interests in southern Algeria. The collaboration between AAPI and BF signifies a robust international investment drive to elevate Algeria’s agricultural sector.
This investment comes at a promising time for the Algerian cereal industry, which anticipates a substantial harvest this year.
According to the latest projections by the United States Department of Agriculture (USDA), Algeria’s wheat production is expected to rise by 11%, reaching 3 million tonnes in the 2024/2025 season.
If the forecast holds, Algeria could overtake Morocco to become the second-largest wheat producer in North Africa after Egypt for the third time in the last five years (after 2020/2021 and 2022/2023).
The USDA attributes the positive prospects to improved rainfall in the production areas of the central and eastern regions of the country. The area sown is expected to remain unchanged at 1.8 million hectares, while crop yield is projected to increase by 11% to 1.67 tonnes per hectare.
However, despite this increase, the nation’s annual wheat consumption remains high, around 11.2 million tonnes.
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