Agricultural investment and international land deals: evidence from a multi-country study in Africa

Abstract

Recent spikes in world food and energy prices have fostered renewed momentum for agricultural investment in lower and middle-income countries. Governments in some food-importing countries are promoting the acquisition of land overseas as a means to ensure long-term national food security. Businesses are recognizing new opportunities for strong returns from international investments in agriculture for food, fuel and other agricultural commodities. Dubbed ‘land grabs’ in the media, land-based investments have kindled much international debate, in which strong positions are taken on the impacts of such investments on environment, rights, sovereignty, livelihoods, development and conflict at local, national and international levels. Depending on how they are structured, agricultural investments may deliver local benefits and include small-scale producers in value chains, or carry environmental and social risks that fall disproportionately on local people. Vigorous public debate in recipient countries, effective screening of proposed investments, including robust environmental and social impact assessments, secure local land and resource rights, local voice in decision-making, skillfully negotiated and regulated contracts and effective policy incentives for business models that favor working with local farmers over large plantations can help make the renewed momentum in agricultural investment work for development.