Large-scale foreign land investments in Africa with particular attention to the case of Zambia
Date
2012-07-02
Authors
Van Der Werf, Wytske
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Abstract
This study analyses large-scale foreign land investments, the trends, the drivers, the
actors and the extent. It focuses on Africa and on Zambia in particular. In addition, it
aims to understand the role of smallholder farmers and of host governments in these
investments. Further, it seeks to establish how large-scale foreign land investments
can contribute to economic development in host countries. The study draws on a large
body of literature as well as interviews and data provided by a number of
organisations in Zambia. The research shows that in global terms Africa receives most
interest, with investors mostly based in Europe and Asia. The single largest investing
country is, however, South Africa. Aside from traditional agribusinesses, newly
established biofuel companies, investors and governments have become involved in
land deals. These actors are driven by high oil prices, biofuel policies, high food
prices, the financial crisis and general climate change considerations.
From Zambia’s experience it is argued that if large-scale foreign land investment is to
contribute to economic development and poverty reduction, smallholder farmers, who
make up a large part of the rural poor, must be included in a fair way. Rather than
using small-scale farmers for taking risks, such as exist with new crops and rain-fed
crops, these farmers should be sufficiently supported and given a fair share for their
produce. In addition, they should not be forced off their lands and be encouraged to
keep part of their land for their own food production. Experiences to date however,
show that investors are more interested in short term profit rather than the
development of the local area. Many projects have been reported to have displaced the
local population, have created only a limited number of jobs at low wages and in
general have not generated considerable economic growth.