course

Rob Dongoski
1. Why is FDI in agriculture so complex and
controversial?
topic on the global stage and especially relevant for many of
the countries in Africa. Despite the fact that a relatively small
percentage of total FDI is related to Agriculture (ranging from
2% to 5%), the number is growing year-over-year and that
trajectory is expected to continue as world populations grow
and more food must be produced and transported across
borders.
The continent of Africa faces an interesting dilemma; on the
one hand, it has the largest proportion of untapped arable
attention of sovereign nations looking to secure future food
supplies. On the other hand, the continent has one of the
highest rates of malnourishment and a delicate food chain
that relies on subsistence farmers and a fragile ecosystem of
natural resources. Further compounding this dilemma is the
growing interconnectedness of the global Agri-Food value
chain and increasing demand for land (urbanization, bio-fuel
production, etc.).
2. How will FDI related to agriculture in Africa evolve?
Current FDI investments related to agriculture and food
generally align to one of two themes; (1) multinational
corporations pursuing joint ventures in established African
companies combined with relatively small investments
in targeted areas of the supply chain; and (2) foreign
governments contracting large land deals with the intent of
exporting food to supply growing populations. While there
investments in isolation will not support the domestic and
According to a recent report published by The Chicago
Council on Global Affairs, Africa is expected to have 2 of the
top 10 largest cities in the world by 2050 and 7 out of 10
by 2100. 1 This presents a tremendous opportunity but also
to serve these growing urban centers and the demand for
more varied food (protein rich, packaged or convenient, etc.)
supply chains will need to modernize and extend. This will
governments, corporations, NGOs and the local workforce.
3. Can agriculture sow the seeds of change?
technology, education, etc.) have the potential to pave a new
path in sustainable and inclusive development in Agriculture
while boosting food supplies globally. To achieve this result,
companies must take a long-term view and focus on three
keys for success: (1) Strengthening both Regional and Global
supply chains; (2) Leveraging public/private partnerships
to improve supporting infrastructure and reduce execution
risk; (3) Empowering smallholders, local communities and
small and medium enterprises through inclusive development
programs.
1
Growing food for growing cities: transforming food systems in an urbanizing world (Chicago
report_growingfoodforgrowingcities2.pdf
EY’s Africa Attractiveness Program 2016 Staying the course
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