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Land deals in Africa: pioneers and speculators

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  • Venables, Anthony
  • Collier, Paul

Abstract

Much African land currently has low productivity and has attracted investors purchasing (or leasing) land as a speculative option on higher future prices or productivity. If land deals are to be beneficial they need to induce productivity enhancing investments. Some of these will be publicly provided (infrastructure, agronomic knowledge), and some can only be provided by ?pioneer? investors who discover what works and who create demonstration effects. Such pioneers can be rewarded (incentive compatibly) for the positive externalities they create by being granted options on large areas of land. However, pioneers must be separated from speculators by screening and by requirements to work a fraction of the land.

Suggested Citation

  • Venables, Anthony & Collier, Paul, 2011. "Land deals in Africa: pioneers and speculators," CEPR Discussion Papers 8644, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8644
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    More about this item

    Keywords

    Land deals; Farmland; Africa; Rent; Lease;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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