The government of Ethiopia began actively attracting land-based investors in the early 2000s in order to modernize the agricultural economy and diversify exports. Large areas of land, particularly in its more scarcely populated lowlands, have since been and allocated to large foreign investors. Investors, especially of Indian, Turkish and diasporic origins, began developing large industrial estates for crops such as cotton, sugarcane, wheat and rice.

The development of many such estates involved conversion of forests, wetland and wildlife-rich grasslands. The need for irrigation infrastructure contributes to worsening water pollution and seasonal water scarcities. Since much of the land earmarked for investment is located in marginalized agropastoral areas where tenure rights are comparatively insecure, involuntary displacement was widespread, with few affected communities rarely consenting to and being compensated for land loss. The consequent declining availability of pastureland exacerbated local food insecurities and intercommunity resource conflicts.