The investors are seeking safe investment opportunities in West Africa, which offers opportunities of investment in rainforests and agricultural land. West Africa has abundant natural resources, and ecosystem is known for Niger Delta and tropical forests. West Africa owns more than 50% of the resources of the region, which includes the water reserves and the water basins.
West Africa is emerging out of political and economical instability. The region is considered complex in terms of religion, beliefs, dialects and linguistic divide. It is famous for the availability of huge natural resources in the form of human resources, power (gas and oil) and mineral resources. Despite the presence of such natural resources the region had a low rate of growth and development. The policies of the community, its culture and historical factors have been creating barriers to foreign direct investments.
The barrier to investments in West Africa is
There are numerous economic benefits of the management of resources such as –
In the previous decades many countries in the West Africa identified the need to promote investments to ensure food security and to promote development, which was based on support from foreign agencies. The poor management of agricultural land in West Africa had been a major reason for the poor production of food grains. Due to poor supply of food grains, the rate of food grains also increased in West Africa.
The global demand for agriculture related investments have increased due to the rise in commodity price, which was temporarily eased in 2009. The global population is increasing and the living standard is also improved as the people are earning more. But the production of food grains is not adequate to fulfil the demand. People need food grains to ensure food security and to prevent food crisis. This led to the promotion of support for investment in agricultural land and initiated programs, which were designed to support investments from foreign countries.