In Ethiopia, agriculture plays a fundamental role for economic growth and development. It provides primary commodities, especially food for domestic consumption, as well as raw materials for the processing industry, and it brings foreign currency into the country through exports earnings.
Currently, numerous investors have leased land from the Ethiopian government, thus investment promotion has been successful in attracting foreign and local investors. Among these, some have shown encouraging progress. However, for various reasons investors often take very long to start developing the land for agricultural investments. Leased land often keeps lying idle for several years. Also, environmental and social impacts are often considerable and can result in environmental degradation and/or produce conflicts with the local community. Even the investors themselves sometimes do not benefit from their investment project as originally planned.
Investment promotion, land identification and land leasing are important activities for bringing land in productive agricultural use. However, solely conducting these activities does not guarantee that the investment projects develop as planned and agreed. This implies that for the overall success of large-scale agricultural investments (LSAI) regarding their economic, social and environmental impacts a monitoring system has to be in place to follow up on agricultural investment projects in a timely manner.
This manual illustrates a monitoring scheme for monitoring LSAI in Ethiopia. It aims at providing orientation for establishing a monitoring scheme and implementing monitoring activities in the framework of LSAI at the Ethiopian Horticulture and Agricultural Investment Agency (EHAIA) and the regional Bureaus. Both authorities are responsible for leasing out land to agricultural investors and supervising related activities.
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