Friday, 16 January 2009

African agriculture

African agriculture has become a hot topic since last weeks announcement that a U.S. investor lease large parts of South Sudan. This followed the news a few months ago that South Korea’s Daweoo Logistics secured rights to plant corn and palm oil in Madagascar.

Investor interest in farmland is focused on increasing food prices and demographics.
There is clearly room for improvement in the continent’s full agricultural potential. Mechanised agriculture and bigger farms will lead to major productivity gains. One word of warning however, land ownership could prove contentious. On the ground expertise is a must.

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