Algeria and Italy Finalize $455 Million Agricultural Project Deal

By Madz Dizon

Jul 07 2024, 19:57 PM EDT

Algeria and Italy Finalize $455 Million Agricultural Project Deal — The pack of riders (peloton) cycles past wheat fields during the 3rd stage of the 111th edition of the Tour de France cycling race, 230,5 km between Piacenza and Turin, in Italy, on July 1, 2024. MARCO BERTORELLO/AFP via Getty Images

Algeria and Italy have recently entered into a significant agreement worth 420 million euros ($455 million) for the implementation of an agricultural project in Algeria, according to a statement released by the Algerian agriculture ministry.

Algeria and Italy Forge Agricultural Partnership

Italian officials have hailed the scheme as a significant agricultural investment in the southern Mediterranean. Spanning 36,000 hectares (89,000 acres) in Algeria's Timimoune province, it is set to make a significant impact, Bloomberg reported.

During the agreement ceremony, officials announced that the farm will cultivate a variety of crops, including wheat, lentils, and beans. The goal is to boost Algeria's non-hydrocarbon exports by expanding agricultural production.

According to the sources, it is anticipated that the project will generate approximately 6,700 employment opportunities.

Months after Algeria signed a $3.5 billion agreement with Qatar's largest dairy producer Baladna, a deal has been reached to establish a large cow-breeding facility for the production of powdered milk.

According to Algerian officials, Saturday's agreement is a significant step in the country's plan to increase production areas in its desert south to 500,000 hectares.

Italian "Mattei Plan" Aims to Enhance Africa Cooperation

The project aligns with the objectives of Italian Prime Minister Giorgia Meloni's "Mattei Plan," which includes efforts to decrease irregular migration from Africa through investments in the continent.

The plan is named in honor of Enrico Mattei, the visionary founder of the renowned Italian energy company Eni. In the 1950s, he strongly supported the idea of collaborating with African nations to harness their natural resources.

Meloni mentioned that the cooperation programme between Europe and Africa was valued at 5.5 billion euros, with a portion of it being loans. The investments would be directed towards energy, agriculture, water, health, and education in African countries.

Italy has also signed additional deals with other African countries, such as Tunisia and Libya, as part of the program.