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March 19, 2012

Fears that DRCongo law favoring nationals in farm ownership may scare off foreign investorsn

A new law requiring nationals of the Democratic Republic of Congo to be majority shareholders in farms has caused concern about its effects on the country's image as an emerging agricultural investment destination.

The new law, passed in December 2011, provides tax breaks and other incentives designed to kick start investment in agriculture in the DRC, which imports much of its food requirements despite being a vast, fertile land mass. War and the country's many political problems over several decades have decimated much of what local agriculture used to take place.

But it the clause of the law requiring Congolese to be majority owners of farmland that has raised concerns that potential foreign investors will be scare off from the country, while few nationals will have the means for significant new farming investment.

African Agriculture 

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