An Assessment Of Challenges And Prospects Of Foreign Direct Investment In Agricultural Sector In Ethiopia (with Reference To Foreign Investment In Large Scale Farmland)

It is obvious that our country has engaged in farmland deal with foreign agricultural investors.rnThe government is leasing tenth of thousands of hectors of farmland to foreign agriculturalrnfirms. Therefore, this study is done with the main objective of examining the major benefits andrnas well threats of foreign investment in large scale farmland in Ethiopia. Thus, this paper hasrnattempted to explore the challenges that made difficult for the country to easily drive the duernbenefits from foreign investment in large scale farmland.rnTo this end the study collected primary source of data from concerned government authoritiesrnand as well from assessed foreign agricultural firm. Secondary sources of data were also used inrnaddition to the primary data gathered.rnThe study has found that there are various obstacles that have challenged the government fromrndriving the due benefits from the contracts of large scale farmland. For instance the issue ofrntransparency and consultation with local farmers and community can be mentioned among manyrnothers.rnThe profitability of any foreign investment to a given host country depends on that respectiverncountry’s government role, that makes it beneficiary to the host country or misery to that hostrncountry. Therefore, the study was concluded by recommending certain necessary suggestions,rnthat may enables the government to get a due benefits from large scale farmland deal andrnconsequently address some challenges that hampered the process of the deal and thus strengthenrnthe prospects of foreign investment in large scale farmland

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