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This article presents the recent years rapid increase of global demand for rich resources and cheap land available particularly in Africa which became attractive and popular among investors. Ethiopia and some governments in Africa have actively engaged in the process of controversial arable land transactions with foreign investors at the expense of their own farmers. This article focuses on the main issues of transfer of land to foreigners in Ethiopia compared with similar events in Africa and other parts of the world. Analysis of this problem requires to put forward important questions to look for the answers. Is the transfer of land to investors which is often done by removing the traditional users and farmers from their land contributed to the development? I there any economic justification regarding the transaction of long-term lease or sale of land to foreigners? The largest share of long term investment regarding land lease takes place in five administrative regions in Ethiopia – Afar and Amhara in the north, in central Ethiopia Oromia and Gambela and Nations, Nationalities and Southern regions of Nations (SNNPR). According to the investigation generally the balance between small-scale and large-scale agriculture leaves a big question mark over the future livelihoods of small farmers in Ethiopia as well as other parts the world. Displacing the local farmers and focusing on the agricultural products intended exclusively for export without distribution in the local market are also pointed out as the serious social injustice. In Ethiopia like in some countries in Africa, the problem of land also caused a strong reaction in the society and it is inevitable that this problem will be one of the international issues to be solved soon.
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