Report

Joint Ventures | IISD Best Practices Bulletin #1

Legal Tools for Responsible Investment in Agriculture Series

This bulletin highlights risks associated with joint ventures and provides guidance to agricultural investment negotiators and government lawyers on how to mitigate these risks.

By Sarah Brewin on August 18, 2021

In this best practices series on legal tools for responsible investment in agriculture, IISD analyzes key legal and policy issues arising from the legal instruments that states use to govern responsible investment in agriculture and food systems.

As governments increasingly look to different models for attracting and delivering private investment in agriculture, one approach that is gaining interest is the public-private incorporated joint venture (JV). The use of this model is likely to increase along with the growing focus on public-private partnerships (PPPs) for agribusiness investment.

In a JV arrangement, the public and private partners each contribute equity, share profits, and jointly manage the company. JVs are a unique project structure that carry with them unique benefits and risks, particularly for developing country governments, and in the context of agriculture.

The purpose of this bulletin is to highlight some of the key risks associated with JVs, and to provide some guidance to agricultural investment negotiators and government lawyers as to how they can be mitigated through careful legal drafting.