Increasing Agricultural Productivity:
Encouraging Foreign Direct Investments in the COMCEC Region
30
Figure 12: Sources of Investment in Agriculture in Selected Low- and Middle Income Countries
Source: FAO 2012b with * meaning number of countries
The reporting of FDI data based on balance of payments (BoP) statistics and capital flows
remains a difficult process for many countries as many governments are not equipped to comply
with the international reporting requirements for collecting FDI data. Nor do these capital flows
tell anything on the actual contribution to the host economy in terms of job creation or capital
invested. In the next few sections the FDI statistics on the firm level will be explored by using the
FDI markets database.
2.5.1 Destination of Agricultural FDI: World and Country Regions
As figure 13 shows, traditionally, Western Europe and Asia-Pacific accounted for the vast
majority of projects (i.e. 36 project out of 44) in 2012. Between 2003 and 2012, Western Europe
is still the world’s leading source region, accounting for almost two-fifths of projects tracked,
although Asia-Pacific overtook the leading position of largest source region for FDI in 2012.