International
Institute for Environment and Development (IIED) had said that investments fund
in agriculture shows a growing interest.
This
was made known in a press statement made available to NaijaAgroNet, stating that lands and
agribusinesses are on the global rush for investment.
Reasons
for the increase in land investment as revealed by IIED could be linked to high
long-term returns attributable to rising land prices, growing populations and
increasing demand for food.
NaijaAgroNet also gathered that investments in
the agrobusiness sector's sources are mostly financial players like pension
funds, sovereign wealth funds and rich individuals.
Experts
at IIED noted that an estimated US$14billion, about N2.234trillion in private
capital has already been committed to investment in farmland and agricultural
infrastructure. While a larger part of the fund is based in Europe and North
America, whereas the figure according to analysts is expected to be doubled or
tripled by 2015.
The
potential for land values in Africa, they pointed out is much greater where
farmland prices are comparatively low.
Returns
on investment, as said by them is largely dependent on the prices of
agricultural commodities which is the major reason some investors go for land
with high yield potential, investing further in agricultural productivity in
order to increase their annual returns.
Further,
the fund structures in developing countries are reported to be on the increase,
especially as they are being used to invest in agriculture, the investors are
also being driven by the high expectation of returns which can be linked to
rising land values and productivity.
'Yinka Awosanya/ED
... Linking agrobiz, people & technology
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