What the UAE needs from Africa in order to invest in agriculture

One of the economies that is eyeing Africa’s agricultural potential is the United Arab Emirates.

Food security is a problem for many regions around the world, including the Middle East. The World Bank estimates that 60% of the world’s uncultivated arable land is in Africa, placing the continent’s role in agricultural production at the forefront of global discussions.

One of the economies that is eyeing Africa’s agricultural potential is the United Arab Emirates (UAE). According to H.E. Hisham Abdullah Al Shirawi, chairman of Economic Zones World in Dubai, Africa has the solution to the UAE’s limited food production capacity.

“Food security is a major issue for us in the UAE and in the region in general. As you know we are part of the desert region of the world with water scarcity and scarcity of fertile soil. So any agriculture activity here in this part of the world is a challenging affair, and a costly one.”

However, Africa has fertile soil and water resources for agriculture. “As a matter of fact, one of the sayings that we have is that in Sudan, if you are eating a fruit and you are walking and you spit [out] one of the seeds, you can come back after a year and find a tree that has grown, without any effort,” he said. “For us to do anything [like that] we have to allocate a lot of effort, management, time, money...”

According to 2011 statistics, South Africa was the 13^th largest supplier of Dubai’s food imports, but was the only African country to make this top 20 list. However, Al Shirawi envisions establishing huge farms in countries across Africa to provide agricultural produce to the UAE economy. He said that the overall farming potential in Africa is endless. “I mean, you name it. What is it that people in the world want that is not available in agriculture in Africa? Probably nothing.”

For this reason, Al Shirawi believes that the UAE should invest in the continent's agricultural sector.

“So these things are available in Africa in abundance and it is to our benefit to enter into a certain strategic partnership where we can create jobs and economic development for African countries, not just South Africa, but many other African countries, and at the same time attain our food security requirements.”

African bureaucracy a deterrent

Al Shirawi said that one of the reasons that this strategic partnership does not currently exist between the UAE and Africa is due to past experiences with bureaucratic governments.

“Once you start the whole project and get the approval of the government, after about a month or two from that process certain other departments started to interfere and say you have got the approval from other departments but not from this department, and not from a third or a fourth and a fifth,” explained Al Shirawi.

“That bureaucratic process first of all delays the project, increases the costs, makes it uneconomical and creates lack of confidence.”

Africa faces its own food insecurity and while the continent has the potential to feed itself and the rest of the world, it currently lacks, in general, the skills, financial support as well as transport, storage and manufacturing infrastructure necessary for success in the agricultural industry. Although places like the Middle East might need Africa in order to ensure their own food security, Africa may need this investment in order to develop its own agricultural sector.

“Why not all of us dream of a better future? This better future can start from Africa and we can work collectively in order to be able to make this dream a reality as there is nothing more important than to attain food security,” he added. “I mean how many revolutions in the world have taken place due to people that are starving.”

So what does the UAE need from African governments?

Al Shirawi said that a partnership could be reached that benefits both sides, but only if both parties understand what the other needs in the end. Once the deal has been made, there has to be a level of trust that both sides will stick to it.

“Don’t tell me you need the following additional approvals, give us a check list that we can work from in advance so we can fulfil those requirements and pay the following fees, and if we do then you do not interfere in that activity. We will take care of the processes, we will create job opportunities, we will build the schools for those children of families that are working there, we will build clinics for their health requirements, we will build that infrastructure there, but you do not interfere in the process. Because every now and then – especially when heads of departments or different ministers take positions, or a different government takes place – you have to start the whole process from the beginning. Which will make the entire process futile.”

Al Shirawi also added that, from his side, they are willing to sit down with African leaders to discuss such partnerships, but they require the legal framework from their African counterparts.

“Any type of partnership has to be a win-win situation. Anything else would be a recipe for demise sooner or later... By creating such huge job opportunities and cash circulation within that zone, that by itself will create opportunities for [Africa] to establish additional and other businesses, and if a percentage [of agricultural produce] has to stay within Africa, let it be,” continued Al Shirawi.

Meat production is also something that Al Shirawi said he would like to see the UAE establish in Africa. He added that this would be beneficial for other sectors in Africa. “You will establish certain packaging or canning processes, which means you have to establish factories for those which means you have to have people who are trained to manage it and train the rest of the population in the operation.”

The Africa Global Business Forum will be held in Dubai at the beginning of May and will host discussions on food security and the opportunities in Africa’s agriculture.

“This is how I envision it. We do not have such an activity now but this is an activity I think is of paramount importance to Africa and it involves our own food security for the future."