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This thesis aims to analyze the effects of foreign direct investments (FDI) on agriculture in developing countries specifically in the Kingdom of Eswatini. To provide better understanding of the relationship between economic agriculture growth, government expenditures, and important policy implications. Furthermore, understand the participation of foreign investors by commodity value chain or international market chains. The effects of FDI in agricultural production from farm establishments, reinforcing standards, production methods, and procedures that can affect local farmers in a developing country.
This research thesis will examine the key aspects of agriculture in Eswatini through pattens and trends of foreign direct investment participation and TNCs. The main TNC players in different areas of agricultural activities, driving factors for FDI, characteristics development trends in agriculture, investment objectives, and deeply analyze how FDI affects agriculture. Furthermore, this thesis will inspect factors affecting investment in Eswatini agriculture.
Agriculture has been fundamental in the economic development of Eswatini in growing the economy, establishing industrial development and diversification in the nation. Most developing countries in parts of the world have benefited from increased investments, a technological enhancement to improve productivity and output to meet the market demand. However, in other countries especially in Africa, agricultural potential has not been fully exploited thus result in a shortage in food supply and difficulty in economic development.
The decline in development assistance and insufficient investment has resulted in the government depending on the private sector both domestic and foreign potential investments. Land grab by investors is causing concern in developing countries in fear of land and economic colonialism, especially in African countries.
This thesis is based on qualitative research with the use of the general FDI policy framework. The use of secondary data from interviews, document reviews and data gathered from financial institutions.
According to my findings their present inflows on FDI which is good for the economy but not doing very well in the local agriculture sector. It is failing because there is no value addition present, lack of spillovers and local farmers struggle with finding markets to sell there produce. The government is spending less than 10% of their total public budget on agriculture making it hard for the sector to grow. They are no policies that attach local farmers to be part of FDI and TNCs.
This thesis will provide a comprehensive review for policy makers to create policies that are relevant to Eswatini agriculture and FDI participation including the smallholder farmer.

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