Increasing Agricultural Productivity:
Encouraging Foreign Direct Investments in the COMCEC Region
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Domestic Market Growth Potential was the top motive cited by companies for 44.4 percent of
projects. This was followed by regulations or business climate and natural resources at 25.9
percent and 20.4 percent, respectively.
 Key investors account for almost one-third of projects.
The top 10 percent of investors have created a total of 119 projects, 32 percent of the total
projects. These investors have created a combined total of 37,821 jobs, which equates to one-
third of the overall total. The combined capital investment from these companies reached USD
9.19 billion, equating to one-fifth of the total for all companies.
 Food & Tobacco is top sector with the majority of projects.
Out of a total of seven sectors, Food & Tobacco accounted for 76.5 percent of projects. Project
volume in this sector peaked during 2009, with 39 projects tracked. Total jobs creation and
capital investment in this sector was 72,859 jobs and USD 21.16 billion respectively.
 Largest investment projects originate from Indian investors
With an average project size of USD 300.00 million, projects originating in India are
approximately two and a half times larger than the average across all source countries. Ranked
third in overall projects recorded with 31 in total, India created a total of 15,940 jobs and USD
9.30 billion capital investment.
 Top five destinations attract the majority of projects.
Out of a total of 42 destination countries (implying that 15 Member countries did not enjoy
inward FDI), the top five account for the majority of projects. Indonesia is the top destination
country accounting for almost one-fifth of projects tracked. Total investment into Indonesia
resulted in the creation of 20,277 jobs and USD 6.78 billion capital investment, equating to an
average of 298 jobs and USD 99.70 million investment per project. These figures suggest that
geographical distribution of FDI is biased towards the larger production countries leaving many
low income and developing COMCEC Member countries empty handed.
 Large companies invest more in agricultural FDI than small companies
The FDI Database shows that companies with an annual turnover of more than 1 billion
significantly invest more in agricultural FDI than companies with a turnover of 50 million and
less.