FACTBOX-Investing in Africa: Land and agriculture

Oct 8 (Reuters) - Soaring food prices, supply fears among import-dependent countries and rising demand for biofuels have driven up investment in agricultural land, notably in Africa.

The meltdown in financial markets has slowed some of these flows, but some analysts say there are still good opportunities in African land, where investment in infrastructure, fertiliser and equipment has traditionally been lacking.

Here are some facts about farming and foreign investment on the continent.

AGRICULTURE IN AFRICA - SOME KEY FACTS:

-- The Food and Agriculture Organisation (FAO) says only 14 percent of Africa's 184 million hectares of arable land is under cultivation, with some 21 million hectares in a state of accelerated degradation.

-- It said agriculture accounted for 17 percent of gross domestic product in Africa, 57 percent of employment and 11 percent of export earnings.

-- Agricultural imports have increased more rapidly than exports in the last 30 years with Africa becoming a net importer of agricultural commodities, 87 percent of which were food products in 2005.

-- In 2003, African governments agreed to allocate at least 10 percent of their budgets to agriculture and rural development. The African Union said only one country in five has reached or exceeded that level.

* It is estimated that if the current plateau in agricultural productivity continues, the amount of additional land required just to meet projected food demand in 2050 would be about 3 billion hectares, nearly all from developing countries.

INVESTING IN AFRICA'S AGRICULTURE:

* The China Development Bank has granted loans worth several hundred million dollars to agricultural processing firms, mostly in East Africa. Governor Chen Yuan told African finance ministers in August the bank plans further investments and urged Africans to grow cereals as well as cash crops.

-- In 2006, China agreed with some African countries to help raise grain production by using Chinese rice seeds and technology. It has also agreed to set up demonstration farms.

* Cash-rich, water-poor Middle Eastern and Gulf nations are also looking to secure food supplies. Import dependency in food will reach 60 percent in the Gulf Cooperation Council countries by 2010, according to the FAO.

-- Oil producer Abu Dhabi announced plans in July to develop over 70,000 acres of farmland in Sudan to grow alfalfa, used as animal feed, and probably corn, beans and potatoes.