An Assessment of Challenges and Prospects of Foreign Direct Investment in Agricultural Sector in Ethiopia (With Reference to Foreign Investment in Large Scale Farmland)
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Date
2011-04
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Addis Ababa University
Abstract
It is obvious that our country has engaged in farmland deal with foreign agricultural investors.
The government is leasing tenth of thousands of hectors of farmland to foreign agricultural
firms. Therefore, this study is done with the main objective of examining the major benefits and
as well threats of foreign investment in large scale farmland in Ethiopia. Thus, this paper has
attempted to explore the challenges that made difficult for the country to easily drive the due
benefits from foreign investment in large scale farmland.
To this end the study collected primary source of data from concerned government authorities
and as well from assessed foreign agricultural firm. Secondary sources of data were also used in
addition to the primary data gathered.
The study has found that there are various obstacles that have challenged the government from
driving the due benefits from the contracts of large scale farmland. For instance the issue of
transparency and consultation with local farmers and community can be mentioned among many
others.
The profitability of any foreign investment to a given host country depends on that respective
country’s government role, that makes it beneficiary to the host country or misery to that host
country. Therefore, the study was concluded by recommending certain necessary suggestions,
that may enables the government to get a due benefits from large scale farmland deal and
consequently address some challenges that hampered the process of the deal and thus strengthen
the prospects of foreign investment in large scale farmland
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Keywords
Large scale farmland