Financial and economic dimension of the investment potential of the agri-food sector of the region

A prerequisite for the successful functioning of any enterprise in modern conditions is the formation and development of investment processes that contribute to the practical economic growth of the agri-food sector. Under such conditions, a critical task is to expand the investment opportunities of agri-food enterprises, which involves the creation of a powerful investment potential that will help to increase the economic efficiency of business entities and ensure the growth of agri-food production and the development of rural areas. The purpose of the study is to analyze the theoretical and methodological foundations of the content and functional significance of the investment potential of the agri-food sector in the regional economy, to study the mechanisms of its expanded reproduction, and to reveal the economic essence of the processes of development of investment activity in the context of market transformation. The article examines the financial and economic dimensions of the investment potential of the agri-food sector of a region, particularly in the example of the Odesa region of Ukraine. The author emphasizes the need to increase investment activity in the agricultural sector to ensure its competitiveness and sustainable development. Particular attention is paid to the analysis of capital investments, which are a key factor in economic growth and the modernization of production. The study covers the period from 2010 to 2023 and includes an analysis of the dynamics of capital investment in agriculture, forestry, and fisheries in the Odesa region. The author reveals a positive but unstable trend in investment growth due to economic and political factors, particularly the impact of the COVID-19 pandemic and Russia’s military aggression. It is established that the primary source of financing capital investments remains the own funds of enterprises, which is insufficient for sustainable development, especially for small and medium-sized businesses. The author proposes increasing the share of borrowed capital in the financing structure to 30%, which will help to intensify investment activity, increase production, etc. To increase the investment potential of the agri-food sector, a comprehensive approach is needed that considers both internal resources and external sources of funding, as well as a favorable investment climate etc. Keywords: investment activity, investment potential, agricultural sector, agri-food sector, investment resources, capital investments.