While the world prices of basic necessities are soaring, Algeria is multiplying initiatives to try to obtain agricultural and energy self-sufficiency. A project with China, in the fertilizer production sector, has just been signed.
Last Tuesday, Algerian and Chinese companies signed a cooperation agreement for the implementation of a megaproject in the transformation of phosphates into fertilizers. The project, estimated at 7 billion dollars, was the subject of a call for tenders last year, won by the Chinese companies Wuhuan and Tian'an, which will collaborate with Asmidal, the subsidiary of Sonatrach. The new company, Algerian Chinese Fertilizers Company (ACFC), is 56% owned by the Algerian party.
China is the leading producer and exporter of fertilizers in the world. A sector that allowed the Middle Empire to position itself in several agricultural markets, such as rice, vegetables or meat.
And Chinese agricultural production far exceeds its own needs, Beijing has no trouble feeding its population - a quarter of the world's population - and even surpasses the United Arab Emirates in terms of food security, according to the rankings of the International Development Fund. Agricultural Development (IFAD) and the World Food Program (WFP).
Progress that China owes in large part to the production of phosphate fertilizers, a market of which it controls 28% of production and nearly 13% of exports on the world market.
Algeria, for its part, is the first country in Africa in terms of food security, and the first, also, in the production of fertilizers. Algiers is the eighth largest exporter in the world, in addition to being able to boast of being self-sufficient.
China-Algeria: A politico-economic choice
Why did Algeria choose to invest more than 3 billion dollars in this project with China? The project will produce up to 5,4 million tons of fertilizer per year, which will place Algeria in third place in the world for fertilizer production.
Even by exporting half of the fertilizers produced by this project, Algeria will be on the way to dominating, with China therefore, by far the world ranking of fertilizer exports.
Above all, phosphate (nitrogen) fertilizers are best for growing in arid and semi-arid regions. Algeria exploits, in spite of its very good agricultural production, hardly 18% of its territory for agriculture, in particular because of the climate.
An economic choice which therefore raises questions: is Algeria in the process of further developing its agriculture? In any case, the timing suggests it. With imports of cereals and other agricultural products at a standstill due to the Russian-Ukrainian conflict, states less close to the West — Algeria and especially China — fear that this will have serious consequences.
Read: How the Russia-Ukraine conflict could affect Africa's food supply
But this agreement is also very political. While Europe is increasingly fond of Algerian gas – a boon for the European Union in the midst of energy shortages – Algerian diplomacy is in a very comfortable position to initiate new projects with international partners, including China. .
“The world today is facing serious challenges and the humanitarian crisis is worrying. In particular, the legitimate rights and interests of many developing countries have been violated, and they are being forced to choose sides or even renounce their diplomatic autonomy. This situation must not continue. Algeria and China share common historical experiences and similar positions and proposals. Both sides should cooperate closely to uphold the basic norms governing international relations and maintain a just and reasonable international order.”
“Algeria shares China's views on the current crisis in Ukraine. Algeria and China, along with dozens of countries, abstained in the vote on a UN General Assembly resolution on the question of Ukraine, sending a clear signal that we want to maintain our independence and give a chance at peace. The Algerian side believes that China's proposal is based on international fairness and justice, focuses on promoting peace, stability and security, and is a good path.
Ramtane Lamamra (Algerian Minister of Foreign Affairs)
Towards real agricultural development?
It also seems that Algiers, on the strength of an anticipated doubling of hydrocarbon revenues, intends to invest to achieve food self-sufficiency. How to emancipate oneself diplomatically from any dependence on the West? In any case, the increase in fertilizer production beyond the needs of Algerians is a clear reminder of the first stage of the Russian agricultural plan of 2004.
This plan had enabled Russia – currently the world's second largest exporter of fertilizers behind China – to rehabilitate 25% of agricultural land abandoned due to a shortage of fertilizers. A shortage caused by the collapse of the USSR in the 1990s, which Moscow circumvented by installing new nitrogen fertilizer production plants.
"In the context of Algeria, food security is an aspect on which reflection cannot be postponed, because the reforms and adjustments that it would be necessary to undertake to remedy the shortcomings are mainly of a structural nature whose expected results will only materialize in the long term. Tomorrow is built today. Any delay will have serious consequences for the country.
Ali Daoudi (Algerian agro-economist)
Read: Russia-West economic balance of power: a cycle that is ending?
Still, the main challenge facing food self-sufficiency in Algeria is not the lack of fertilizer, but rather the climate. However, since the mandate of Houari Boumediene, Algeria has shown the example in the fight against desertification. The Green Dam, with its 370 million trees, is still one of Algeria's priorities.