The Policy Framework for Investment in Agriculture

Private investment is essential if agriculture is to fulfill its vital function of contributing to economic development, poverty reduction, and food security.

Agricultural production needs to increase by at least 60% over the next 40 years to meet the rising demand for food. In a context of rising land and water scarcity, agricultural investment is thus critical to induce output expansion and bolster incomes in rural areas, thereby enhancing global food security.

A coherent policy framework is an essential component of an attractive investment environment for all investors, be they domestic or foreign, small or large. To assist governments mobilise private investment in agriculture, the OECD has developed the Policy Framework for Investment in Agriculture (PFIA).

The Policy Framework for Investment in Agriculture

The 10 policy areas of the Policy Framework for Investment in Agriculture

Investment policy
Investment promotion and facilitation
Infrastructure development
Trade policy
Financial sector development
Human resources, research and innovation
Tax policy
Risk management
Responsible business conduct
Environment

The PFIA is a flexible tool which helps governments evaluate their investment policies in the ten areas essential to creating an attractive environment for investors and in enhancing the development benefits of agricultural investment.

The PFIA has been used by Burkina Faso, Indonesia, Myanmar, and Tanzania to improve their agricultural investment climate.

The PFIA is a sectoral adaptation of the Policy Framework for Investment. It was first developed in 2010 by the OECD Sustainable Investment Programme for Africa , the Sahel and West Africa Club and the Office of the Special Adviser on Africa of the UN Secretary General. It has since benefited from inputs from the agricultural, investment, and development policy communities at the OECD.

Related meetings

Keynote Session ‘International Initiatives to Stimulate Technology Innovation and Uptake in Agriculture’ at the Agri-Tech Investment Summit, 1-2 October 2013, London
Panel debate ‘Developing a sustainable agriculture policy framework’, at the Agriculture Investment Summit, 26 June 2013, London
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Panel on designing an agribusiness index at the European conference on European agribusiness in Africa: Opportunities and challenges - 10 April 2013, Brussels, Belgium
High-level panel on private investment in the food and agriculture sectors at the Global Forum for Food and Agriculture - 18 January 2013, Berlin, Germany
Presentation ‘A policy framework for investment in agriculture – Promoting policy coherence’ at the Annual General Assembly of the Global Donor Platform for Rural Development - 24 January 2012, Berlin, Germany