Benefits And Risks Of Agricultural Land Investments

Investment in African land grew in 2011 and corporate investors are attracted to the tax breaks and custom duty exemption offered in these regions

. The tax breaks on the crops and rice as well as timber has been promoting foreign direct investment. The foreign direct investment in the sub-Saharan region increased to 35 billion in 2011, which was higher than the investment of 2008 i.e. 34.7 billion.

Some of the attractions of the investment in agricultural land in the sub Saharan regions are

1.The agricultural labour cost is in the range of $2 to 3 per day, which is less than American and Asia labour cost.

2.The regulations for hiring labour are flexible and are based on productivity. The employers are not bound to pay for no productivity.

3.The cost of agricultural land acquisition is less.

4.There is no extra charge for making use of water resources. In fact, in certain regions of Sierra Leone the lands are wetland, which eases the process of rice production.

5.The rate of using electricity is high but as the investors is promoting the generation of palm oil. Electricity / power can be generated from these grids at a low cost from palm oil plantation projects.

6.The local taxes are not high.

7.These investments have been backed by World Bank Groups which is working in Sierra Leone for the promotion of foreign direct investment and it is also offering technical help and advice for these services. The main aim is to deliver programs which can improve the investment environment, promote private sector investments and also promote competitiveness in the field.

The agricultural land offered Sierra Leone is widely researched by reputable groups who undertake the process of land identification and offer detailed information related to the land ownerships and land use methodologies, to attract investment.

The basic ground world is done in Sierra Leone to get the support of local communities in the process of land acquisition. This makes the process easy and offer fast acquisition. Sierra Leone has been growing through these investments and has been listed in nations which promote investment. It was selected as the countries which has highly favourable environment for starting a business and also it offered the environment, which protects the investors (1).

The World Bank has also supported investment in Sierra Leone and it ranked it number on second place in terms of investments in Africa in 2009-2010. African investment opportunities companies in Sierra Leone found that the investments are not just philanthropic investment, alternatively, it provides great returns due to the hard work involved in developing projects.

Sierra Leone had huge area of arable land which is not productively used. In 2009 only 12% of the total arable land of Sierra Leone was cultivated. The country has more than 5.4 million hectares of land , which can be productively used to ensure increased yield.

by: Rob Davis

POST COMMENT

Pmp Certification Cost: Qualifications And Necessities For Pmp Certification Examination Health And Happiness Experts Revealed Ways To Get Happiness In Life Things To Know About A Medicine That Is Useful For Stomach And Intestines Treatment The Adventure And Intrigue Of Starting A Website From High Cost To Inexpensive Web Hosting And Every Host In Between Pay More For Porcelain Veneers Austin And Dental Implants Cost And Yet Save Money Disaster Recovery And Preparedness An Overview Of Lg Optimus Vu Specs, Release Date And Price Investing In Pc Software To Retrieve Erased Photos And Recover Treasured Memories How? Learn To Speak English - Tips And Techniques To Better English Best Esl Grammar And Speaking Tips - What If You Taught Esl Learners To Speak More Communicatively? Dynamics Gp Ongoing Integration With External Application Overview And Faq Acne During Pregnancy What, Why And How?