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Agricultural investment funds for development

Descriptive analysis and lessons learned from fund management, performance and private–public collaboration











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    Project
    Support to Domesticating the SADC [Southern Africa Development Community] Regional Agriculture Investment Plan (RAIP) and Regional Agricultural Development Fund by Member States (Eswatini, Namibia and Zimbabwe) - TCP/SFS/3704 2022
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    In the Southern Africa Development Community, agriculture provides livelihoods for a majority of the region’s population It is central to poverty reduction, economic growth and food and nutrition security As such, in 2014 SADC Member States approved the SADC Regional Agricultural Policy ( which defined common objectives and measures to guide, promote and support national and regional actions to contribute to the achievement of the common agenda, as well as regional integration The RAP foresees a Regional Agricultural Investment Plan ( for each phase of the implementation plan However, institutions in the Member States face challenges with respect to the integration of regional protocols in their national systems The success of the RAIP depends on the uptake of various measures, support is needed to create the necessary institutional mechanisms for its implementation As such, FAO was requested to provide support on the customization of the RAIP and the SADC Regional Agriculture Development Fund ( in Eswatini Namibia and Zimbabwe The aim of the project was to facilitate the domestication of the RAIP, which is expected to further support increased private investment in the agriculture and food sectors, as well as associated sectors in these three countries.
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    Document
    Impacts of foreign agricultural investment on developing countries: evidence from case studies 2014
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    There is growing evidence that investing in developing countries’ agricultural sector is among the most efficient ways to reduce poverty and hunger. Agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is a lack of systematic evide nce on the actual impacts on the host country and their determinants. This paper summarizes the results of FAO’s case studies on the impacts of foreign agricultural investment on host communities and countries. The studies suggest that the disadvantages of large-scale land acquisitions often outweigh the few benefits to the local community. In countries where local land rights are not clearly defined and governance is weak, large scale land acquisition raises particularly high risks for the loca l community. These include reduced access to natural resources and the loss of livelihoods, which are likely to generate local opposition to the investment. Even from the perspective of the investor, land acquisition is unlikely to be the most profitable business model due to the high potential for conflict and damage to reputation. Conversely, the studies suggest that investments that involve local farmers as equal business partners, giving them an active role and leaving them in control of the ir land, have the most positive and sustainable effects on local economies and social development. These inclusive business models need strong external support for supporting farmers and facilitating the investor-farmers relationship in order to succeed. They also require ‘patient capital’, as financial returns to investment are unlikely to materialize in the first years. Beside the business model, other important factors include the legal and institutional framework in the host country, the ter ms and conditions of the investment contract and the social and economic conditions in the investment area. Strengthening the governance and capacity of institutions in host developing countries is essential to enhancing the developmental impacts of foreign agricultural investment.
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    Book (stand-alone)
    Agricultural investment and productivity in developing countries 2001
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    The purpose of this book is to investigate the relationship between agricultural investment and productivity in developing countries. Investment is viewed as an important aspect to enhance agricultural productivity, and the key to promoting long-term growth. Although technology and policy are other important long-term factors, the book focuses on investment because public, private and international investments are declining. Low levels of investment in agriculture bode poorly for long-term prosp ects of achieving food security in the developing world. A growing agricultural sector contributes to overall growth and improved food security in developing countries where the agricultural sector provides livelihood directly and indirectly to a significant portion of the population, especially in rural areas, where poverty is more pronounced. Hence, improving the production capacity of agriculture in developing countries through productivity increases is a critical component of improved food s ecurity. The objective of this book is to provide an understanding of the linkages between agricultural investment and productivity where agricultural investment includes not only investments in physical capital but in human and social capital as well as natural resources. Overall the book provides an overview of current thinking and findings about the relationship between agricultural investment and productivity. This includes theoretical and methodological developments, such as incorporating natural resource depletion. It also underlines, through the concerns expressed by many authors about data scarcity and limitations, that neglect of information needs hampers the forward-looking assessment of sustainability of agricultural and rural development. The book also reviews findings about the linkages of investment and productivity in the context of other important factors such as land policy, debt, civil unrest and structural adjustment programmes. This places agricultural investment solidly as a crucial but integral component of an overall policy to promote agricultural productivity.

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