Assessing foreign direct investment (FDI) in agriculture and employment in rural Ghana

Unemployment remains a major development challenge in sub-Saharan Africa, and government efforts to address it have yielded limited successes, especially in rural communities. The liberalisation policies constitute a significant instrument for African governments to catalyse development through foreign direct investment and private sector led job creation. This paper examines foreign direct investment in the agricultural sector in the Lower Volta Basin of Ghana. Data was collected through interviews, participant observation and survey to analyse both positive and negative effects of FDI in agriculture. On the one hand, FDI in agriculture injects capital into the national economy and produces positive spillovers, including youth employment, technology, and skills transfer. On the other hand, poor wages, precarious working conditions, perceived exploitation, leakages, and dislocation of smallholder farmers are evident. Investments in the agriculture sector must suit local sociocultural conditions to minimise micro adverse outcomes.