Private investment is essential if agriculture is to fulfill its vital function of contributing to economic development, poverty reduction, and food security.
Agricultural production needs to increase by at least 60% over the next 40 years to meet the rising demand for food. In a context of rising land and water scarcity, agricultural investment is thus critical to induce output expansion and bolster incomes in rural areas, thereby enhancing global food security.
A coherent policy framework is an essential component of an attractive investment environment for all investors, be they domestic or foreign, small or large. To assist governments mobilise private investment in agriculture, the OECD has developed the Policy Framework for Investment in Agriculture (PFIA).
The Policy Framework for Investment in Agriculture
The 10 policy areas of the Policy Framework for Investment in Agriculture
- Investment policy
- Investment promotion and facilitation
- Infrastructure development
- Trade policy
- Financial sector development
- Human resources, research and innovation
- Tax policy
- Risk management
- Responsible business conduct
The PFIA is a flexible tool which helps governments evaluate their investment policies in the ten areas essential to creating an attractive environment for investors and in enhancing the development benefits of agricultural investment.
The PFIA has been used by Burkina Faso, Indonesia, Myanmar, and Tanzania to improve their agricultural investment climate.
The PFIA is a sectoral adaptation of the Policy Framework for Investment. It was first developed in 2010 by the NEPAD-OECD Africa Investment Initiative, the Sahel and West Africa Club and the Office of the Special Adviser on Africa of the UN Secretary General. It has since benefited from inputs from the agricultural, investment, and development policy communities at the OECD, and is due to be published in early 2014.
- Keynote Session ‘International Initiatives to Stimulate Technology Innovation and Uptake in Agriculture’ at the Agri-Tech Investment Summit, 1-2 October 2013, London
- Panel debate ‘Developing a sustainable agriculture policy framework’, at the Agriculture Investment Summit, 26 June 2013, London
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- Panel on designing an agribusiness index at the European conference on European agribusiness in Africa: Opportunities and challenges - 10 April 2013, Brussels, Belgium
- High-level panel on private investment in the food and agriculture sectors at the Global Forum for Food and Agriculture - 18 January 2013, Berlin, Germany
- Presentation ‘A policy framework for investment in agriculture – Promoting policy coherence’ at the Annual General Assembly of the Global Donor Platform for Rural Development - 24 January 2012, Berlin, Germany
LINKS AND DOCUMENTS
Policy Framework for Investment in Agriculture (pdf)
Policy Framework for Investment (PFI)
Country investment policy reviews
Reponsible business conduct in agricultural supply chains
OECD work on investment
OECD work on agriculture
JOIN THE DISCUSSION
What challenges must be overcome in order to develop a sustainable investment policy for agriculture?
OECD policy analyst Coralie David answers questions from Total Asset, 31 May 2013