Governments in sub-Saharan Africa and their donors have made business investment a major policy goal, supported by a variety of incentives designed to support business investment in agriculture. However, little is known about the factors which influence agribusiness investment in Africa, and how effective these incentives have been. This paper examines the motivations of agribusiness investment, the effectiveness of government and donor policy incentives, and the relevance of these incentives for four different commercialisation pathways.
This study builds a profile of the status of poverty and vulnerability in Malawi. Malawi is a small land-locked country, with one of the highest population densities in Sub-Saharan Africa, and one of the lowest per capita income levels in the world. Almost 90 percent of the population lives in rural areas, and is mostly engaged in smallholder, rain-fed agriculture. Most people are therefore highly vulnerable to annual rainfall volatility. The majority of households cultivate very small landholdings, largely for subsistence.