Gulf must rethink Africa food investment

20 February 2014

If Gulf countries can invest in Africa at the same time as growing food, they may get a warmer welcome  

To live in a GCC country is to rely on imported food. The tough climate means there is no other option. Yet that does not stop governments thinking more should be produced at home. Such thoughts led to the situation in the 1990s when Saudi Arabia became one of the world’s largest wheat exporters, drawing the water used to grow the crop to the detriment of its reservoirs. Riyadh has since scaled back wheat subsidies, although many other thirsty crops are still grown in the kingdom.

The lessons from this episode have not always been taken on board by others. Abu Dhabi, for example, is currently making an effort to develop its own agriculture sector.

Those pushing such initiatives argue that they need to bolster food security, but domestic production will never provide more than a small fraction of what is needed. The more sensible course is to invest abroad. That too has been controversial, particularly in Africa, where the idea of food being exported while locals go hungry has drawn sharp criticism.

Such concerns, alongside bureaucracy and land ownership disputes, have led Gulf states to invest in European, Asian and the American farms, but they should not ignore Africa entirely. What the continent lacks is effective infrastructure, which means much of its food products never reach the market. If investors can improve transport and storage networks and invest in local training at the same time as growing food, they may get a warmer welcome.

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