This paper tests the potential agricultural investment in foreign agricultural rich countries. It begins with outlining the food crisis and food security issues in the GCC region. Then it assesses agricultural potentials of several countries in Africa and Central Asia including Mozambique, Senegal, South Africa, Tanzania, Sudan, Pakistan, Kazakhstan, Tajikistan, Uzbekistan, Turkmenistan and Kyrgyzstan. The agricultural potential of these countries is analyzed under 3 main criteria:

1) The current agricultural status quo Food export potential

2) The Macroeconomic and political framework and the related risk.

3) The openness towards foreign direct investments.

The result of this analysis is then compared with investing in developed countries in Europe and Latin American countries whether they would be a better investment options.

The report also assesses other important factors besides direct investment in agricultural projects, namely: 1) the logistical infrastructure 2) Investment in trading houses. And whether these factors are more significance for the success of trade flow.

Then it concludes the finding by an assessment of prevailing geopolitical considerations and transport security.

EU and Latin American countries proved to be the best option for Agro-investments due to their development infrastructure and the stronger rules of law in order to protect agricultural FDI.

In Africa, it was mainly found the Mozambique, Sudan and South Africa would prove a relatively competitive return of investment. Though these countries still face some infrastructural challenges, therefore successful investments in Africa would need to be large scale in nature.

Asian countries suffer from poor water resources which is the main criteria for agricultural investment success. And indirect access to food can be readily available through investing in transport infrastructure and trading companies.

 

 

 

https://www.files.ethz.ch/isn/111335/Potential_for_GCC_Agro_5729.pdf