Improving Agricultural Market Performance:
Creation and Development of Market Institutions
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Based on these aspects, the following countries have been selected:
 Arab Group: Tunisia – Tunisia has attracted quite a volume of agricultural FDI,
although it represents a small share of the total volume of FDI it attracted. Tunisia’s
agricultural and food market can be characterized as stable, given the equal shares of
food import and export, stable domestic food price, and relatively high agricultural
production value per capita. Tunisia can be classified as medium-income country and
has relatively larger shares of land suitable for agricultural purposes and rural
population compared to other Arab countries.
 Asian Group: Indonesia - As a medium-income country, Indonesia has attracted a
substantial absolute volume of agricultural FDI (i.e. number of projects, capital
expenditures, and jobs), which is a relatively large share of its overall FDI. Indonesia is
a large food exporter while minimum food is imported compared to the other
shortlisted countries. It is among the countries with a slightly disproportionately large
share of its population living in rural areas while demand and supply for agricultural
and food products is flexible given the relatively high domestic food price. Finally,
Indonesia’s geography (i.e. large island nation with remoted regions) calls for
examining its market institutions.
 African Group: Uganda – Uganda’s agricultural proposition is strong, considering its
strong attractiveness to agricultural FDI, its high share of food export in combination
with a large part of the population living in rural areas. Uganda’s agricultural land
makes up a large share of its overall land surface and accounts for approximately a
quarter of its national economy. Uganda, as a low-income country, furthermore has its
own regional trade networks and a Government actively engaged in modernizing its
agricultural and food sector.
As mentioned, a case study of South Africa has been added to demonstrate how agricultural
market institutions are developed and involved in a non-OIC country. Each of the country case
studies has been based on thorough desk research, which has been complemented with on-site
interviews to validate findings and observations.