Governments in sub-Saharan Africa and their donors have made business investment a major policy goal, supported by a variety of incentives designed to support business investment in agriculture. However, little is known about the factors which influence agribusiness investment in Africa, and how effective these incentives have been. This paper examines the motivations of agribusiness investment, the effectiveness of government and donor policy incentives, and the relevance of these incentives for four different commercialisation pathways.
In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity.
The rapid transformation of agri-food value chains in Africa and other developing countries has important implications for economic growth and poverty reduction. Policy makers increasingly recognize this but there is a need for a better understanding of what value chain transformation entails and what the main policy options are. This paper provides an overview and analysis of different value chain models that have emerged in the past decades and reviews the literature on the main development implications.