An Exploratory Study on the Situations of Agricltural Foreign Direct Investment and the Perceptions of Local ConmlUnity: The Case of Anuak Zone, Gambella Regional State, South Western Ethiopia
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Date
2015-12
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Addis Ababa University
Abstract
In most Africa countries, agriculture is the dominant sector and takes a leading role in the
economic growth of a given country. For many other countries, however, agricultural growth and
opportunities for meeting the MDGs will be fostered largely tlu·ough growth in the nonfarm
economy, in Agricultural FDI and in agricultural exports that can expand the market for
agricultural products. FDI is an international venture in which an investor residing in the home
economy acquires a long-term "influence" in the management of an affiliate firm in the host
economy. According to the definition, the existence of such long-term influence should be
assumed when voting shares or rights controlled by the multinational firm amount to at least 10
percent of total voting shares of rights ·of the foreign firm. This study focuses on exploring the
situations of agricultural foreign direct investment and the perceptions of local community.
Specifically, on exploring the existing situations of agricultural foreign direct investment, the
positive contributions of agricultural foreign direct investment, the negative consequences of
agricultural foreign direct investment and the perceptions of the local people towards agricultural
foreign direct investment. As a result, the study found clearing of forest, employment creation as
existing situations of gricultural foreign direct investment. It reported employment creation,
adoption of agricultural new technologies, and building of infrastrures as the positive
contributions of the agricultural FDI. The negative consequences are clearing of forest,
displacement, Improper wastes management, destruction of wildlife, shortage offiJel woods,
climate change, poisoning agrochemical. Whereas the participants perceptions founded are
clearing of forest to reach worse level if the provision of the land continue. Large land provision
will lead to more displa<;ement, shortage of grazing land and food insecurity. Conflict will
happen due the unequal benefit between local people and investors. Climate condition has keep
changing from year to ye.ar.These findings could help to design and implement programs that are
be suitable for people and investors operating in the study area. It also helps in creating
awareness about benefits of agricultural investment to local people whom are claimed by
investment. Moreover, it can provide information for further stlldies. The design of this research
is cross-sectional exploratory-descriptive continuum, which utilized qualitative research method.
This design has been used for this study because it can encourage the participants of the study to
give detailed information about the issue under study. It drawn both primary and secondary data.
The data obtained from in-depth· interview participants were presented under the themes, which
emerged during transcribing and translating the audio taped interview and notes taken during
interview. The report of the study presents existing situations, positive contributions, negative
consequences of agricultural foreign direct investment, and their perceptions concerning the
foreign agricultural investment.
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An Exploratory Study on the Situations of Agricltural Foreign Direct