ABSTRACT
This chapter aims to provide an understanding of the nature and practice of private funds investing in African agriculture. It considers the various efforts being made to understand the impact of private investment in African agriculture. Investment is essential to fund the necessary increases in agricultural yields. Commercialisation provides an opportunity for private capital to flourish in agricultural investments as a result of short- and long-term commodity price increases. Globally there is no one optimal platform that leads management teams or investors towards one clearly preferred investment vehicle. Development finance institutions and academics interested in the African agricultural sector have, however, recognised that in the current financial environment private investment represents one of the few major sources of capital available. New investment alliances are being built between private investment institutions and development finance institutions to develop original guidelines for ‘positive impact investment’ for agricultural initiatives.
