Impact Of Large-Scale Land Acquisitions On Africa’s Farmers

Via The BBC, a look at the impact of large-scale land acquisitions on Africa’s farmers:

“Land grabs” are now one of the biggest issues in Africa.

Over the past few years, companies and foreign governments have been leasing large areas of land in some of Africa’s poorest countries.

Land deals as % of agricultural area

Source: FAOstat
DR Congo 48.8%
Mozambique 21.1%
Uganda 14.6%
Zambia 8.8%
Ethiopia 8.2%
Madagascar 6.7%
Malawi 6.2%
Mali 6.1%
Senegal 5.9%
Tanzania 5%
Sudan 2.3%
Nigeria 1%
Ghana 0.6%

Many commentators have raised concerns that poor villagers will be forced off their land and agribusiness will marginalise family farming.

Others say that foreign investment can help African countries create jobs, increase export earnings and use more advanced technologies.

Three years since media reports started raising public awareness on this issue, evidence has been growing on the scale, geography, players, features and impacts of the land rush. The emerging picture provides ground for concern.

Last year the World Bank documented media reports of land deals over the period between 2008 and 2009.

The deals were for nearly 60 million hectares worldwide, roughly the size of a country like Ukraine – and two-thirds of the land acquired was in Africa.

While new figures continue to emerge, all evidence points to a phenomenon of unprecedented scale.

Also, some individual deals are for very large areas. For example, Liberia recently signed a concession for 220,000 hectares.

Money to be made

Media attention has focused on investments by Middle Eastern and Asian government-backed operators but Western companies have also been heavily involved.

Companies acquire land because they expect world food and commodity prices to increase – so there is money to be made in agriculture.

Some governments have also promoted land acquisitions abroad as a way to secure affordable food for their people.

In many African countries, agriculture has suffered from years of neglect – and investment is needed to improve productivity and market access.

But not all investment is good – and growing evidence strongly indicates that large land deals are not the way to go.

Short-lived jobs

A synthesis of over 30 reports worldwide found that many investments have failed due to insufficient soil fertility, financing difficulties or over-ambitious business plans. For example, in Mozambique and Tanzania, some large biofuels projects have now been abandoned.

Even where investments are profitable, it is often difficult to see how they contribute to poverty reduction. The jobs created are few, short-lived and low-paid – and public revenues are limited by tax exemptions.

A report published last year raised serious questions about the terms of the contracts that governments are signing up to.

Some of the world’s poorest people are losing the land, water and natural resources that have supported their livelihoods for generations. In Uganda, for example, 20,000 people claim to have been evicted from their land and a legal case is pending before courts.

Not every deal is a “land grab” – much depends on local context, the investor’s track-record, the terms of the lease, and whether these reflect the free, prior and informed consent of local landholders.

But for local people, the context in which the deals are being concluded tends to make negative outcomes more likely.

Best intentions

There are huge power imbalances among international companies, government and local landholders. Many land deals are being negotiated without transparency and local consultation.

In many parts of Africa, local farmers, herders and gatherers only have insecure legal rights to the land they see as theirs. Most have no written documents for their land. Much land is owned by the state, which can allocate it to outside investors even against local opposition.

And while international law provides relatively effective protection for foreign investment, international human rights law remains inaccessible and ineffective for people losing land.

So even when investors come with the best intentions, this means local groups are exposed to the risk of dispossession – and investors to legal disputes.

Family farmers have long provided the backbone of African agriculture – and, when given a chance, they have been able to compete on global markets.

Family farming

In Ghana, for example, a co-operative of 60,000 cocoa farmers has run a successful business for nearly 20 years and owns 45% of a UK company that manufactures and distributes chocolate.

The global demand for food and agricultural commodities creates new opportunities for African farmers.

Public policies and infrastructure to support family farming are needed today more than ever.

Evidence also shows that private investments to improve productivity or market access can be structured in ways that support local farmers.

Many companies successfully source agricultural produce from family farmers, and have invested in other activities along the production line – in ways that secure their supplies and improve local livelihoods.

In Mali and Zambia, some farmer associations own shares in the company they collaborate with, which gives them monetary benefits and a greater say.

Co-operatives or intermediaries can reduce the costs linked to working with large numbers of farmers. Public policy plays a key role in promoting fairer investment models.

The perception that large plantations are needed to “modernise” agriculture in poorer countries is dominant in many government circles.

But evidence shows that this perception is misplaced.

Promoting agricultural development in Africa and addressing the world’s food security challenges requires investing in farmers – not in farmland

This entry was posted on Thursday, February 23rd, 2012 at 8:52 pm and is filed under Uncategorized.  You can follow any responses to this entry through the RSS 2.0 feed.  You can leave a response, or trackback from your own site. 

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About This Blog And Its Author
Seeds Of A Revolution is committed to defining the disruptive geopolitics of the global Farms Race.  Due to the convergence of a growing world population, increased water scarcity, and a decrease in arable land & nutrient-rich soil, a spike of international investment interest in agricultural is inevitable and apt to bring a heretofore domestic industry into a truly global realm.  Whether this transition involves global land leases or acquisitions, the fundamental need for food & the protectionist feelings this need can give rise to is highly likely to cause such transactions to move quickly into the geopolitical realm.  It is this disruptive change, and the potential for a global farms race, that Seeds Of A Revolution tracks, analyzes, and forecasts.

Educated at Yale University (Bachelor of Arts - History) and Harvard (Master in Public Policy - International Development), Monty Simus has long held a keen interest in natural resource policy and the geopolitical implications of anticipated stresses in the areas of freshwater scarcity, biodiversity reserves & parks, and farm land.  Monty has lived, worked, and traveled in more than forty countries spanning Africa, China, western Europe, the Middle East, South America, and Southeast & Central Asia, and his personal interests comprise economic development, policy, investment, technology, natural resources, and the environment, with a particular focus on globalization’s impact upon these subject areas.  Monty writes about freshwater scarcity issues at and frontier investment markets at