What makes some African countries more attractive to foreign investors.

What is it about?

Foreign investors are targeting land in Sub-Saharan Africa. This paper tackles the following questions: Why have sub‐Saharan African (SSA) countries become attractive destinations for land investment? How would transnational land deals affect the sustainability and development of SSA countries?

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Photo by Ira Mint on Unsplash

Photo by Ira Mint on Unsplash

Why is it important?

We discuss the threats and opportunities of land investment deals to the sustainability and development of Sub-Saharan Africa. This is important for structuring land acquisition deals to ensure better outcomes for millions of small-scale farmers across the region. This paper examines country characteristics associated with land acquisitions. The results reveal that the availability of land and water, corruption, days required to start a business, government effectiveness, cost of business startup and political stability are critical determinants of land acquisition investments in Sub‐Saharan Africa. Three significant findings for better outcomes of land deals are: scrutinizing investors' business models, technical experience, and knowledge of local culture; undertaking rigorous environmental and social impact assessments (ESIA) to weigh the long‐term cost benefits of LASLA projects; and conducting transparent contract negotiations.

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