Deal or no deal: the outlook for agricultural land investment in Africa

Abstract

Recent sharp increases in food prices have prompted some food-importing countries to promote the acquisition of farmland abroad as a strategy to secure food supplies at affordable prices. Businesses are recognizing new opportunities for strong returns from agricultural investment, including agri-food, biofuels and other agricultural commodities. Dubbed ‘land grabs’ in the press, large-scale land acquisitions have kindled much international debate, in which strong positions are taken on the impacts of such investments on the environment, rights, sovereignty, livelihoods, development and conflict at local, national and international levels. This article provides an analysis of this complex and shifting situation, focusing on Africa and drawing on quantitative inventories of land acquisitions in four countries and on a small sample of land deals. The article lays out key trends and drivers, and discusses the main features of international land deals before analysing the main risks and opportunities involved, focusing on implications for local, national and global food security. The article concludes by outlining practical steps to make the renewed momentum in agricultural investment work for development, and avoid the pitfalls of exacerbated political tensions.