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Private sector agribusiness investment in sub-Saharan Africa







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    Book (stand-alone)
    Policies and actions to stimulate private sector fertilizer marketing in sub-Saharan Africa
    Agricultural Management, Marketing and Finance Occasional Paper, No. 15
    2007
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    This paper synthesizes literature reviewed in order to characterize lessons learned from reform over the past two decades, identifies areas of consensus for improving fertilizer markets and increasing fertilizer use, evaluates the pros and cons of ongoing debates, and proposes potential actions for resolving debates and moving forward. It is hoped that the paper will provide valuable information for policymakers in Africa, as well as donors and fertilizer marketing companies.
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    Book (stand-alone)
    A contribution to the analyses of the effects of foreign agricultural investment on the food sector and trade in Sub-Saharan Africa 2011
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    The growing interest of foreign investors in Sub-Saharan Africa’s vast agricultural potential raises concerns about the investment impacts on the food sector and the economy at large. This paper analyzes the likely effects of foreign agricultural investment in Sub-Saharan Africa with a focus on the impacts on the food sector by simulating the effects of the reduction of investment risks triggering an entry of foreign investment flow. The analysis employs the Global Trade Analysis and Policy (GTA P) model and simulates three investment scenarios that affect land uses, labour market conditions, and technological progress. The data are aggregated over three main sectors: food, manufacturing and services. Simulation results show that although foreign agricultural investment in Sub-Saharan Africa would lead to an increase in food prices and a decline in domestic food supply that would in turn cause an increase in food imports, the increases in factor returns and in employment would boost hou seholds’ real income to offset the loss from higher food prices. The positive income effects would be magnified if the agricultural investment brought technological progress to the food sector. Moreover, foreign agricultural investment would widen the current account deficit but improve terms of trade, whose effect on total welfare is large. The improvement of the terms of trade in the model is mainly due to a strong increase in the export price of tradable goods from the manufacturing sec tor. The service sector would unambiguously experience the strongest output growth as it benefitted from the formation of capital goods. Overall, the simulation results show that entry of foreign agricultural investment would generate a net welfare gain.
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    Project
    Increasing Public and Private Investments in Agriculture and Agribusiness Sectors of Uganda - GCP/UGA/058/EC 2025
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    In Uganda, access to finance is a critical bottleneck for the private sector, namely agribusinesses and cooperatives, where just 49 percent of the population utilize formal financial services in the rural areas of the country. Value chain actors face constraints to access equity, working capital, terms loans, lease, or receivables. In this context, Uganda Development Bank (UDB), the country’s national Development Finance Institution, with a mandate to accelerate socioeconomic development in Uganda through sustainable financial interventions, provides funding for the agriculture and agroprocessing sector. However, UDB faces challenges in agriculture banking, including high transaction costs, inherent and perceived sectoral high risks, as well as having limited options of geographic enlargement for expanding its agriculture portfolio, among other things. This European Union-funded project aimed to increase public and private investments in the agriculture and agribusiness sectors of Uganda, through enhanced capacity of the UDB and public-private policy dialogue.

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