Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia

Abstract

Most of the African countries including Ethiopia are often known by problem of large scale agricultural land investment effects on the local community where land is being transferred to investment. Even though several efforts made so far to solve the overall effects of large scale agricultural land investment situation, the challenge is still widespread problem in Ethiopia. Hence the study project's purpose was to find out how large agricultural investments in Bambasi Woreda, Western Ethiopia impact the livelihoods of the surrounding populations and examine the local communities' participation in the large scale agricultural investment. In order to attain these objectives, data were collected from 330 randomly selected households in four purposively selected kebeles of the district for both control groups and treatment groups. The sample size was chosen using a multistage stratified random sampling technique. Both qualitative and quantitative data gathering techniques and instruments were employed in the study. Besides, the instruments utilized to collect the data were observations, focus groups, interviews, household surveys, and document reviews. Data was analyzed using both descriptive statistics and econometric methods. The study shows that out of the total sampled respondents 30 of the treatment group and 13 percent of control group reveal that the project provided opportunity in terms of employment opportunity, technology transfer, utilization of agricultural inputs, changing the working culture of the community and productivity. The chie square value shows there is statistical significance among treated and control group on opportunity investment provided for the household and community. A binary logit regression model was used to describe how large-scale agriculture land investment affected the local community's standard of living. The findings indicated that only six variables were found to be significant out of the characteristics that were expected to influence local community employment in large-scale agricultural land investment projects. These includes household's educational accomplishment, size of HH, occupation of HH, Loss of useful land due to investment Project and technology transfer significantly and positively affected the employment opportunity in large scale agricultural investment projects, whereas the distance of a household's home from an investment project has a negative impact. Large-scale agricultural investments have a detrimental influence on household wealth accumulation and income, according to the estimation results of the average treatment effects on the treated. The management and implementation of land transfer for large-scale agricultural investment projects is inadequate, lack of openness, absence of community consultation, natural forest degradation, socio-economic and ecological effects must be carefully considered before transferring the land for large-scale agricultural investment.