The controversial issue of leasing African land to Asian investors recently cost Madagascar’s President Marc Ravalomanana his job. He had agreed to lease 1.3 million hectares to the South Korean conglomerate Daewoo Logistics for 99 years. 1.3 million hectares makes up about half of the island’s fertile land.

Daewoo announced it wanted to cultivate corn and palm oil and ship it to Asia. It said that although it would only pay a symbolic price it would create up to 70,000 jobs. However, the moment the deal was made public, protests began and eventually the president was forced to step down. Andry Rajoelina, his rival and successor, immediately cancelled the deal.

But this is not an isolated case. More and more African countries are offering up their land to investors. China, South Korea and Japan are just some of the interested Asian nations.

Peasants lose their livelihood

Sofia Monsalve from the food rights NGO, FIAN International, says that this new phenomenon is causing local farmers to lose their land and thus the possibility to provide for themselves:

"Unfortunately when such investors obtain the rights to use land or buy it outright the people who live on it are often expelled by force without being paid damages and without being resettled. This is a clear violation of the rights to accommodation and food according to international human rights law and it is unacceptable."

Although it sometimes seems to be unused, the land is often extremely important for the survival of poor rural communities, which use it for grazing purposes or for collecting wood and medicinal plants.

But Christian Nellemann, a food expert from the United Nations Environment Programme, says that there are also benefits: "The fact that other countries are leasing land may also lead to increased investments in that particular country. And that in itself may generate jobs and increase incomes, which then eventually may increase food security!"

Thai-Nigerian cooperation

Nigeria recently made a rice deal with Thailand. Thailand has promised to invest over 800 million euros in the country and help boost Nigeria’s ailing agricultural sector. But Abubakar Wore, the president of the national rice farmers’ association is annoyed:

"As farmers we don’t have enough training or technical know-how. We have no money, no power. So we always have to keep an eye on what the government is doing. We know that we could deal with the situation on our own. But the fact that others keep being invited to help us means that we’re supposedly incapable."

Wore says that only large-scale farmers have benefitted from the deal. However, Nigerian Agriculture Minister Abba Sayyadi Ruma rejects such criticism:

"We have a whole load of farmer associations, especially rice farmers. Whenever anyone says they are not involved, it’s because they don’t know or were too late. But we have explained all this to farmers across the country. We have gathered farming associations and representatives and come up with ideas to support farmers."

Experts say it is too early to pass judgement on the consequences of leasing African land to other countries. They fear that colonial-like exploitation might take place again if environment and social standards are breached. However, if there is job creation and local populations can acquire technical know-how and benefit from improved regional infrastructures, the trend could end up suiting all parties.

Author: Ilka Simon / Anne Thomas
Editor: Thomas Bärthlein