The growing awareness of climate change and its consequences, the continuously rising food prices as well as the industrialized and economically fast developing countries aim to achieve more energy security, encourage large-scale food crop and biofuel production. This, in turn, promotes a rush for arable land by foreign and domestic investors. In principal, Africa is perceived as an attractive destination for such land investments, whereas Ethiopia seems to be particularly suitable due to its large "unused" affordable land. However, Ethiopia suffers from food insecurity and is dependent on international aid. Its economy is mainly based on small-scale, rain-fed, subsistence agriculture, accounting for almost 45 percent of GDP, and 85 percent of total employment. Therefore, agriculture is a key source of employment, growth and revenue as well as a more long-standing source of food security. Respectively, the Ethiopian government states that poverty reduction and development is impossible without significant diversification and commercialization of the agricultural sector and adopted several strategies and policies accordingly. First effects of large-scale land investments show on the one hand related investments in road, hospital and school construction as well as job creation on the other hand adverse consequences for the environment and local population. It has been reported that forest degradation, displacement of local populations, expropriation of land, increasing local food insecurity and increasing poverty are linked to large-scale land investments. Moreover, a dislocation of the local population might increase competition and tension with people in the receiving areas over access to land and resources or stimulate ethnic clashes. Based on the recent trend towards foreign large-scale land acquisitions in Ethiopia, this paper analyses drivers of investors and governments as well as socio-economic and environmental impacts. In particular the author’s field research in Ethiopia with civil society groups, smallholders, scientists and government representatives, which has provided her with empirical insights into competing perspectives, will be taken into account.
