Memorandums of Understanding

The document discusses the role of memorandums of understanding (MOUs) as initial formal steps in collaborations between host governments and private investors in agribusiness. It warns that poorly drafted MOUs can create unexpected risks and unwanted legal effects for governments, while carefully crafted ones can minimize these risks and support effective governance of responsible investment, particularly regarding tenure rights and local community interests.

• Memorandums of understanding in agriculture can lead to unforeseen legal consequences and risks for host governments, depending on how they are developed, used, and the specific details they include or omit.
• The early phase of agribusiness investment, often initiated by an MOU, is critical for establishing precontractual steps that protect local community interests and legitimate tenure rights, although these documents are frequently rushed or lack careful vetting.
• Host governments have the ability to mitigate risks and promote effective governance for responsible agricultural investment by carefully crafting the terms of the MOU.

APA

Brewin,, S. (2023). Memorandums of Understanding. International Institute for Sustainable Development. https://www.iisd.org/publications/report/legal-tools-investment-agriculture-memorandums-understanding

Chicago

Brewin,, Sarah. Memorandums of Understanding. International Institute for Sustainable Development, 2023. https://www.iisd.org/publications/report/legal-tools-investment-agriculture-memorandums-understanding.

Wikipedia

{{cite report |last1=Brewin, |first1=Sarah |title=Memorandums of Understanding |publisher=International Institute for Sustainable Development |date=4 April 2023 |url=https://www.iisd.org/publications/report/legal-tools-investment-agriculture-memorandums-understanding |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brewin2023memorandums, author = {Brewin,, Sarah}, title = {{Memorandums of Understanding}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = apr, url = {https://www.iisd.org/publications/report/legal-tools-investment-agriculture-memorandums-understanding}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }