Making Investment Work for Africa: What role for parliamentarians?

This discussion note, prepared by the International Institute for Sustainable Development (IISD) for the Pan African Parliament, examines the surge of foreign investment in African agricultural land and water. It highlights the risks to food security, land rights, and the environment, while outlining the legal frameworks governing these deals and the critical oversight role parliamentarians should play to ensure sustainable development.

• Foreign investment in African agricultural land and water has increased rapidly, driven by global demand for biofuels and food, as well as water scarcity. Estimates of land leased to investors range from 60 to 80 million hectares, with Sudan, Mozambique, Liberia, and Ethiopia identified as the top four target countries.
• Large-scale agricultural investments often occur in countries with weak land governance, leading to the neglect of existing land rights and a failure to generate expected employment. In some cases, land designated as "unused" was actually being used for shifting cultivation or dry-season grazing.
• Foreign land investments frequently have negative gender impacts, as women often lose access to critical forest and water resources and are typically excluded from consultations and decision-making processes.
• There is a widespread lack of transparency and environmental oversight in agricultural land deals. Many projects bypass required Environmental Impact Assessments (EIAs) due to a rush to approve deals or lack of capacity, and communities are often not informed until after contracts are signed.
• The legal landscape for foreign investment is composed of domestic law, host government contracts, and international investment treaties (such as BITs). The latter often prioritize investor protections and arbitration mechanisms over the social, economic, and environmental interests of the host state.
• Parliamentarians are urged to take an active role in overseeing investment strategies to protect food security and natural resources. This includes demanding access to investment contracts, monitoring the results of environmental impact assessments, and ensuring community consultations occur.

APA

Smaller, C. (2011). Making Investment Work for Africa: What role for parliamentarians? International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/making_investment_work_africa_en.pdf

Chicago

Smaller, Carin. Making Investment Work for Africa: What role for parliamentarians? International Institute for Sustainable Development, 2011. https://www.iisd.org/system/files/publications/making_investment_work_africa_en.pdf.

Wikipedia

{{cite report |last1=Smaller |first1=Carin |title=Making Investment Work for Africa: What role for parliamentarians? |publisher=International Institute for Sustainable Development |date=September 2011 |url=https://www.iisd.org/system/files/publications/making_investment_work_africa_en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smaller2011making, author = {Smaller, Carin}, title = {{Making Investment Work for Africa: What role for parliamentarians?}}, institution = {International Institute for Sustainable Development}, year = {2011}, month = sep, url = {https://www.iisd.org/system/files/publications/making_investment_work_africa_en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }