Harvard and other major American universities are working through British hedge funds and European financial speculators to buy or lease vast areas of African farmland in deals, some of which may force many thousands of people off their land …
… No one should believe that these investors are there to feed starving Africans, create jobs or improve food security …
Much of the money is said to be channelled through London-based Emergent asset management, which runs one of Africa’s largest land acquisition funds, run by former JP Morgan and Goldman Sachs currency dealers.
… Emergent’s clients in the US may have invested up to $500m in some of the most fertile land in the expectation of making 25% returns.
“These agreements – many of which could be in place for 99 years – do not mean progress for local people and will not lead to food in their stomachs. These deals lead only to dollars in the pockets of corrupt leaders and foreign investors.”
“The scale of the land deals being struck is shocking”, said Mittal. “The conversion of African small farms and forests into a natural-asset-based, high-return investment strategy can drive up food prices and increase the risks of climate change.
Research by the World Bank and others suggests that nearly 60m hectares – an area the size of France – has been bought or leased by foreign companies in Africa in the past three years.
“Most of these deals are characterised by a lack of transparency, despite the profound implications posed by the consolidation of control over global food markets and agricultural resources by financial firms,” says the report.
“We have seen cases of speculators taking over agricultural land while small farmers, viewed as squatters, are forcibly removed with no compensation,” said Frederic Mousseau, policy director at Oakland, said: “This is creating insecurity in the global food system that could be a much bigger threat to global security than terrorism. More than one billion people around the world are living with hunger. The majority of the world’s poor still depend on small farms for their livelihoods, and speculators are taking these away while promising progress that never happens.” (The Guardian)
THIS NEW scramble for African land has visited a multitude of problems on ordinary Africans and set the stage for ecological crisis and widespread hunger.
As many critics have pointed out, African governments have falsely claimed that land available for sale is unused. As journalist Joan Baxter writes:
Some defend the investors’ acquisition of land in their countries, saying it is “virgin” or “under-utilized” or “uncultivated” or “degraded” land…This suggests they know precious little about the importance of fallows and the resilience and diversity of agroforestry systems, or about sustainable agriculture and the knowledge base of their own farmers.
Communal land, small farmers and even entire villages are often displaced in the drive for land purchases. The Oakland Institute think-tank released a report on the African land grab, which points out:
Experts in the field, however, affirm that there is no such thing as idle land in…Africa…Countless studies have shown that competition for grazing land and access to water bodies are the two most important sources of inter-communal conflict in [areas] populated by pastoralists.
According to Michael Taylor, a policy specialist at the International Land Coalition, “If land in Africa hasn’t been planted, it’s probably for a reason. Maybe it’s used to graze livestock or deliberately left fallow to prevent nutrient depletion and erosion. Anybody who has seen these areas identified as unused understands that there is no land…that has no owners and users.”
In other words, as activist Vandana Shiva puts it, “We are seeing dispossession on a massive scale. It means less food is available and local people will have less. There will be more conflict and political instability and cultures will be uprooted. The small farmers of Africa are the basis of food security. The food availability of the planet will decline.”
In fact, because much of its food is produced for export, sub-Saharan Africa is the only region in the world where per capita food production has been declining, with the number of people that are chronically hungry and undernourished currently estimated at more than 265 million.
Nations with large amounts of land sold or leased to foreign owners are often food importers, and their inability to feed their own populations is exacerbated by the displacement of food producers who grow for local use. The UN Conference on Trade and Development (UNCTAD) reports that Africa has lost 20 percent of its capacity to feed itself over the past four decades. Ethiopia alone has 13 million people in immediate need of food assistance, yet its government has put over 7 million acres of land up for sale.
And worsening hunger is still to come. …
Large-scale land acquisition poses massive ecological threats to the African environment. The dangers are numerous: hazardous pesticides and fertilizers cause water contamination from their runoff, the introduction of genetically modified seeds and other problems. Land previously left to lie fallow is now threatened with overuse from intensified agricultural development, a trend further exacerbated by speculative investment and the drive for short-term profits.
Yet deals transferring vast tracts of land are typically taking place far removed from local farmers and villagers with virtually no accountability. As Khadija Sharife writes on the Pambazuka Web site:
The deals involving these concessions are often cloaked in secrecy, but African business has learned that they are usually characterized by allowing free access to water, repatriation of profits, tax exemptions and the ability for investors to acquire land at no cost whatsoever, with little or no restriction on the volume of food exported or its intended use, in return for a loose promise to develop infrastructure and markets
In many cases, farmers and pastoralists have worked this land for centuries. However, governments are claiming this land is idle in order to more easily sell or lease it to private investors. (New African Land Grab)
I found this a particularly telling passage from (Mis)investment in Agriculture: The Role of the International Finance Corporation In Global Land Grabs (PDF) a publication of the Oakland Institute.
Proponents of the land deals will dismiss my concerns and claim that this type of foreign investment will benefit the local people by providing jobs and creating infrastructure. They will also say that the land being offered is “unused.” These are hollow arguments. Investors have been quoted as saying they will employ 10,000 people and use high-tech, high-production farming techniques. The two promises are completely incongruous. As a farmer, I can tell you that high-tech, high production devices are appealing precisely because they reduce labor. Investors will not hire significant numbers of people and simultaneously scale-up their production techniques. And if they choose the former, they are likely to create low-paying jobs and poor working conditions. I may be making assumptions, but they are based on history—a history dating back to colonialism and one that has exploited both natural resources and people.
Particularly disconcerting is the notion that the “available” land is “unused.” This land is in countries with the highest rates of malnutrition on the only continent that produces less food per capita than it did a decade ago. In most cases, this land has a real purpose: it may support corridors for pastoralists; provide fallow space for soil regeneration; provide access to limited water sources; be reserved for future generations; or enable local farmers to increase production. The fact that rich and emerging economies do not have or do not respect pastoralists or use land for age-old customs does not mean we have a right to label this land unused.