Dutch Blight or Blessing? Analysis of the food security effects of the Dutch cluster in Debre Zeit, Ethiopia

Abstract

The rapid population growth and economic growth in Africa has attracted many foreign investments, especially in the African agribusiness. Nevertheless, it remains unclear how these foreign direct investments affected local food security. The purpose of this study is to investigate the effects of Dutch companies on resource use and local food security in Debre Zeit, Ethiopia. The study generates in-depth and specific knowledge on Dutch induced business models, to what extent they contribute to local food security and how locally embedded the companies can be. The results of the research showed that the Dutch enterprises create permanent local jobs with additional services for their employees. Furthermore, there are three big developments to detect: food supplier areas are outside the Dutch cluster, transformations happen within the cluster and the final consumption is in the capital Addis Ababa. This research illustrated a paradox of sector development, where there is a cluster that has some characteristics of a business enclave but at the same time characteristics of local embedding