This book chapter is in Handbook of Land and Water Grabs in Africa, the first publication to address inward investment in land and its impact on water resources in Africa.
In this book chapter, the authors have combined a top-down and bottom-up analyses in order to derive more detailed and spatially explicit information about resource endowments, productivity and potentials for improvement, with a view to better direct investments including FDI. The authors find that FDI target countries in sub-Saharan Africa are less constrained in water and land resources (per capita) than investor countries, and typically have lower agricultural water and land productivities.
The authors analysis suggests that in order to meet the rapidly growing local food demand (and need for employment and income) in sub-Saharan Africa, FDI should go beyond the current focus on blue water (irrigation), high-input and highly mechanised agriculture in the most productive areas, and also encompass much more strongly green water solutions in low-productivity, smallholder farming areas that need investment most and that support the majority of the rural population.
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