Supporting the Policy Environment for Economic Development

Agriculture - Investment in the Ag Sector

The TIP Project was asked by USAID to review private investments in the agricultural sector in order to assess the feasibility of developing a framework that tracks investment into the agriculture sector that would provide the basis for analyzing the factors that influence those investments. The framework would provide an empirical platform upon which to assess policy conditions and initiatives that favor growth in direct investment and wealth creation in the agribusiness sector. The ultimate purpose is to contribute to agricultural sector growth that is broad-based, value-adding, employment generating, and export enhancing.

This review occurs in tandem with an in-depth assessment of the public sector’s expenditures in the agriculture sector. The period under review covers the decade between 1998 and 2007, and coincides with the implementation of the multi-donor funded ProAgri sector investment program. Together, the review of private investments and the public expenditures will provide a holistic picture of the agricultural investments and expenditures today, with a view toward analyzing the outlook and trends and identifying opportunities for maximizing growth in the future.

The review will provide a broad assessment of the nature and trends of private investment in the agriculture sector at the following levels: (i) foreign direct investment, (ii) national enterprise spending, and (iii) houselhold expenditure.

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