The agriculture and manufacturing sectors emerged as priority sectors for diversification

Large scale mechanised agriculture and agro-processing were the major investment all focus states. Major business constraints identified were poor organisation of farmers, inadequate processors, insufficient funding, limited agriculture research, poor infrastructure (power and roads from farm areas to markets) and limited market outlets for produce.

There are some key actions needed to address the challenges in the business environment and attract investment at the state level

From our field study, agriculture, However, to fully realise this objective, it is clear that both manufacturing, transport infrastructure the Federal and State Governments are required to work (road, rail) and power generation are some of the collaboratively to address the pending areas. A number of recurring themes for possible investment. The states these can be done independently (i.e. by states and by the governments have made varying levels of progress, in Federal Government). However, some of these require easing some of the business constraints within the state. working together and aligning plans in order to achieve However, there is much still to be done to bridge the gap desired outcomes. In addition, both governing units require especially given the fiscal constraints they face. States continuous dialogue with industry and other stakeholders to need to attract investment for establishing businesses identify areas where intervention is required in order to and job creation; delivering infrastructure and capital attract the investment so badly needed in the states’ projects; and generating additional tax revenues. States economies. already offer a number of incentives to investors including: land acquisition and processing support, tax relief, premium/rebate on land and investments to address infrastructure needs.