Agro-Industrial Parks: Success Factors, Incentive Mechanisms and Donor Roles (2021)

Agro-industrial parks (AIPs) are being utilised by governments across Africa and Asia as a way of enabling agro-processing on a large scale. With strong links to agricultural production zones, AIPs have the ability to spark regional and international value chain integration, export competitiveness, natural resource efficiency, higher investments, and economic spillovers that positively affect jobs, incomes, and industrial know-how.

Over the years, AIPs have, however, seen mixed results. This study for the Commercial Agriculture for Smallholders and Agribusiness (CASA) Programme first explores why AIPs are important before identifying the most common pitfalls and success factors in their design and management. We focus on how AIPs have been successful in attracting investment and where and how donors are best placed to support their success.