Riyadh: A group of Saudi-based investors, including the Islamic Development Bank (IDB), will launch later this year a seven-year plan worth $1 billion (Dh3.67 billion) in Africa to reduce dependency on rice imports and supply the Middle East region.
The so-called 7X7 project aims to develop and plant 700,000 hectares of farmland to produce, within seven years, 7 million tonnes of rice, said Salim Lalani, head of investments at Foras International Investment Company, one of the partners in the project.
"We are looking at three to four countries: Mali, Senegal and maybe Sudan and Uganda," Lalani said.
Food security has topped the policy agenda in the arid Gulf Arab region following rampant inflation in 2008 that underscored its dependence on imports and forced countries to invest abroad to ensure supplies of staples such as rice and wheat.
The project's political backers are the Organisation of Islamic Conference (OIC), which groups more than 50 countries, and the governments of Mali and Senegal, both of which are OIC members.
"On the financial front, there is the IDB and the Private Sector Islamic Development Corporation," Foras said in written replies to questions.
The project's focus on rice aims at catering to the needs of West African and Middle Eastern countries in the commodity.
"West Africa's annual deficit in rice reaches about 2 million tonnes," Foras said. Saudi Arabia imported a little over 1 million tonnes of rice in 2008, according to the US Department of Agriculture. West African giant Nigeria, the continent's most populous nation and an OIC member, produces only a fifth of its 2.5 million tonne annual rice needs.
"This [project] is among targets set by the OIC and the Islamic Chamber of Commerce and Industry to confront the food shortage crisis, increase agricultural output and improve rice productivity," it added. A feasibility study led by Thai experts will be completed soon and the project will start initially on 5,000 hectares in Mali.
The so-called 7X7 project aims to develop and plant 700,000 hectares of farmland to produce, within seven years, 7 million tonnes of rice, said Salim Lalani, head of investments at Foras International Investment Company, one of the partners in the project.
"We are looking at three to four countries: Mali, Senegal and maybe Sudan and Uganda," Lalani said.
Food security has topped the policy agenda in the arid Gulf Arab region following rampant inflation in 2008 that underscored its dependence on imports and forced countries to invest abroad to ensure supplies of staples such as rice and wheat.
The project's political backers are the Organisation of Islamic Conference (OIC), which groups more than 50 countries, and the governments of Mali and Senegal, both of which are OIC members.
"On the financial front, there is the IDB and the Private Sector Islamic Development Corporation," Foras said in written replies to questions.
The project's focus on rice aims at catering to the needs of West African and Middle Eastern countries in the commodity.
"West Africa's annual deficit in rice reaches about 2 million tonnes," Foras said. Saudi Arabia imported a little over 1 million tonnes of rice in 2008, according to the US Department of Agriculture. West African giant Nigeria, the continent's most populous nation and an OIC member, produces only a fifth of its 2.5 million tonne annual rice needs.
"This [project] is among targets set by the OIC and the Islamic Chamber of Commerce and Industry to confront the food shortage crisis, increase agricultural output and improve rice productivity," it added. A feasibility study led by Thai experts will be completed soon and the project will start initially on 5,000 hectares in Mali.
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