With the sharp rise and fall of global grain prices, many affluent countries with limited arable land have begun looking to Africa for food security.
Countries like Angola, Tanzania and Ethiopia have already shown interest in foreign investments and have restructured their land allocation laws to allow for this. The horticulture industry is one of the fastest growing non-traditional export sectors of many African countries, including Zambia, Zimbabwe, Ghana, Uganda, Tanzania and Malawi.
South Korean firm Daewoo has unveiled plans to plant corn on one million acres of land in Madagascar, to sharply cut its reliance on US imports.
Daewoo is leasing the vast tract of land – half the size of Belgium – for 99 years and hopes to produce 5 million tonnes of corn a year by 2023.
It will use South African expertise and local labour on the plantations.
Large Investments in Ethiopia and Kenya have been very profitable and now with countries like Saudi Arabia and Kuwait looking to invest, the African Agricultural sector seems like a great bet.