Tanzanian president arrives in Riyadh

King Abdullah holds talks with Tanzanian President Jakaya Mrisho Kikwete in Riyadh

The president was received on arrival at the Riyadh Base Airport, King Abdullah, Second from the left

Saudi Arabian investors want to lease 500,000 hectares of farmland in Tanzania to grow rice and wheat. The Saudis made the request during President Jakaya Kikwete is visit to the Kingdom that ended yesterday.

Senior officials from the Saudi capital's chamber of commerce came up with the request on the sidelines of a meeting with the Head of State. President Kikwete is reported to have told the Saudis that Tanzania could lease them plots that covered up to 10,000 hectares each for 99 years. "Tanzania is ready to do business with you ... There is 100 million acres (40.5 million hectares) of good available land," Mr Kikwete telling the Saudi businessmen.

Senior economist Ibrahim Lipumba said promoting agriculture was important, but added that such investments required concrete policy direction. Mr Lipumba is also chairman of the opposition Civic United Front.

The president of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Mr Aloys Mwamanga, called it "good business", provided collateral benefits for the country were taken into account. Tanzania Investment Centre (TIC) executive director Emmanuel ole Naiko said such an investment would create many jobs for locals, adding that he expected the Head of State to refer the Saudi investors to TIC.

The Saudis are interested in leasing the equivalent of about 0.5 per cent of Tanzania's land surface because of the country's geographic proximity, political stability and availability of water resources and farmland.

Msomaji

Riyadh