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Are Large-Scale Land Acquisitions in Africa Pro-development? A Network Analysis of FDI in Land and Agro-industry

In: The Palgrave Handbook of Africa’s Economic Sectors

Author

Listed:
  • Nadia Cuffaro

    (University of Cassino)

  • Laura Prota

    (The American University Rome)

  • Raffaele Bertini

    (Food and Agriculture Organization)

Abstract

This chapter investigates whether large-scale land acquisitions (LSLA) in Africa are associated with agro-industry investments and if this association impacts growth. We first review the geographic pattern of land investments across the continent and the transmission channels between LSLA and growth. Secondly, we use network analysis to test whether the network of LSLA is correlated to that of agro-investments. We find a moderate and significant positive correlation between LSLA and agro-industry investments. This correlation is mostly driven by central investor countries (USA, Saudi Arabia, and Great Britain) who systematically couple LSLA with agro-investments. All other countries, by contrast, follow a decoupled strategy where LSLA is not associated with any productive investments. Finally, only a few African countries attract both LSLA and agro-investments.

Suggested Citation

  • Nadia Cuffaro & Laura Prota & Raffaele Bertini, 2022. "Are Large-Scale Land Acquisitions in Africa Pro-development? A Network Analysis of FDI in Land and Agro-industry," Springer Books, in: Evelyn F. Wamboye & Bichaka Fayissa (ed.), The Palgrave Handbook of Africa’s Economic Sectors, pages 87-116, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75556-0_4
    DOI: 10.1007/978-3-030-75556-0_4
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