Increasing Agricultural Productivity:
Encouraging Foreign Direct Investments in the COMCEC Region
29
Figure 11: Funding Sources and Gaps in National Agricultural Investment Plans in Selected
African Countries
Source: Gunasekera et al. 2012.
2.5 Different Sources for Investment in Agricultural Sector
FAO estimates that additional annual investments of $83 billion are needed if developing
countries’ agriculture is to meet food needs in 2050.54 Public investments by governments are
thus crucial, though this requires a reversal of the trend of the last 30 years. Moreover,
investments by governments alone will not be sufficient. Investments from the private sector
are necessary too, though local farmers generally lack funds as domestic savings remain low.
International aid would be another source for agricultural investment if the share of official
development assistance going to agriculture had not fallen dramatically. Figure 12 shows that
the overall share of foreign investment in agriculture in low and middle-income countries is only
marginal compared to domestic investments.
54 Djokoto, 2011; FAO, 2011; FAO, 2012a; FAO 2012b; Hallam, 2009.