afrol News, 1 July - The establishments of funds worth hundreds of million US dollars by commercial banks, charities and governments clearly indicates that African farms and food security projects are magnetising huge private investors.

The expansion of operations by major companies in the continent's agricultural sector will also help Africa's untiring efforts to attain food security.

Most investors have been attracted by the rising prices of food to branch out to Africa where they are sure of maximising huge profits after harvest, 'The Wall Street Journal' said.

A number of factors attracted private investors to invest in Africa's food industry. The continent's vast empty arable land, rising global food prices and zero tariffs for exports from poor countries to the European Union market have all contributed to a boom in food investment.

The rising cost of fuel is also shooting up the cost of imported food, thus making local production more competitive in the black continent.

The trend comes at a time when the United Nations is trying to influence the world powers to contribute US $30 billion dollars to fight world food poverty, especially in Africa where millions of families are under threat.

It is surely a welcome development, but there are fears that private investors could be shied away by several problems, including corruption and slow enforcement of being granted licenses.

The question that remains unanswered is whether the huge influx of private investors to Africa will resolve the continent's food crisis. In most African countries, local food production is expensive compared to the imported ones.

By staff writer

© afrol News

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