In the end it always comes down to the land, Who owns it? Who farms it? And who lives on it? Or who makes a living from it? Since Humans have been living in relatively settled communities land has been bought, sold and stolen fuelling grievances both real and imaginary. What is a relatively new in recent years is that land deals have become a new form of international trade. In recent years, sub Saharan Africa has been the public focus for this trade (the reality is that is been going on around the world for many years). A combination of commercial companies and the various commercial arms of the People’s Republic of China (PRC) have been chasing profits (and land) in Africa pursing profits and (in the case of the PRC) foodstuffs for the world (and the Chinese) market.
Between 2008 and 2009 the World Bank noted media reports of land deals that added up to something like 60 million hectares. The traditional UK media unit of measurement, Wales, won't help to illustrate the scale of the issue, that all adds up to something like the land equivalent to the Ukraine – some two-thirds of the land acquired happens to be in Africa. The evidence points to the fact that land deals are taking place on an unprecedented scale and at an increasing rate. Some of the specific land deals are pretty big, a recent deal in Liberia involved some 220,000 hectares.
The western media has tended to focus on the land deals signed by Middle Eastern and Asian government-backed operators but in reality Western commercial companies and Hedge Funds have also been heavily involved in the process – they don’t like the glare of publicity. One of the reasons why commercial companies are seeking to acquire land is because there is potentially big money to be made with cash crops as world food and commodity prices are expected to increase because of increasing demand for foodstuffs and also bio-fuels from China and India. Some of this is being driven by governments who are chasing land acquisitions abroad as a way to secure affordable food for their people at home.
In 1961 at or on the edge of independence Africa largely fed itself and even managed to export surplus crops. This is no longer the case, partially due to a neglect of the agricultural sector in many African countries, political instability, corruption and a chronic lack of investment to improve productivity and the means of getting surplus crops to both local and international markets. It goes without saying that not all types of investment is good and evidence is beginning to pile up that suggests that large scale land deals have a detrimental impact on indigenous local farmers.
Research by the International Land Coalition suggests that a growing number of these large scale land deals are failing due to a combination of poor soil types, financial problems, local resistance and unrealistic business plans. Some of these land acquisitions have resulted in some pretty raw deals for local people and as a consequence have fuelled dissent and resistance (in Ethiopia and Madagascar to name but two).
Now this does not mean that African states and peoples should steer clear of all land deals. What is needed is for land deals to be implemented properly, transparently, with safeguards for local people and local involvement. Some of the world's poorest people are losing the land, water and natural resources that have supported their livelihoods and their communities for generations. In Uganda, Oxfam has noted that some 20,000 people who claim to have been evicted from their land have taken their case to court seeking redress.
Part of the problem is because of the massive power imbalance between multinational companies, African governments and local farmers and landholders. Many of these land deals are negotiated behind closed doors without transparency, without local consultation something which fuels local dissent and anger. Across much of Sub Saharan Africa, as noted by the International Institute for Environment and Development, there is lack of secure land tenure which affects local farmers, herders and gatherers. This is partially down to a lack of written documentation and also because a great deal of land is owned by the state, which can obviously allocate it to outside investors even against fierce local opposition.
There are some pretty successful business models out there that show what can be done by local people, one co-operative of 60,000 cocoa farmers (in Ghana) has been in business for almost twenty years and owns 45% of a UK company that manufactures and distributes chocolate. There are ways to improve productivity and market access that can support local farmers or at least give them a realistic chance of competing.
Many international companies are able to successfully source agricultural produce from local family farmers, and have invested in other activities along the production line to help secure their supplies and improve local livelihoods. Some farmers associations (in Mali and Zambia) own shares in the company they collaborate with, which gives them monetary benefits and a greater say. Co-operatives have reduced their costs by working with large numbers of farmers.
Some land deals could bring many benefits including increased food production; access to improved agricultural skills, secure land tenure for indigenous farmers and more sustainable development in rural communities. This is something that could help to slow one of sub Saharan Africa's greatest problems rural to urban migration. Civic groups in sub Saharan Africa are demanding far greater transparency and openness from their governments and from investors. If this is done right then local indigenous communities can be helped to become equal partners rather than ending up as victims.
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