Large-scale land acquisitions for agricultural investment: Trends and issues Lorenzo Cotula Senior Researcher – Law and Sustainable Development International Institute for Environment and Development (IIED)

Setting the scene  Spate of media reports worldwide  Little systematic empirical data  FAO/IFAD/IIED study; IIED involvement in World Bank-led study  Trends and drivers, land tenure arrangements, land access impacts – focusing on sub-Saharan Africa  Ongoing literature review, qualitative interviews, systematic inventories in 6 countries

Outline 1.Trends and drivers 2.Can local people benefit?

1.Trends and drivers 2.Can local people benefit?

A fast evolving context: Investment flows to sub-Saharan Africa  Major increase since 2000  Driven by commodity demand, esp extractives, and policy reform  Highly uneven distribution  Likely to slow with economic downturn  But, longer term, stuctural factors likely to stay Source: UNCTAD

Growing agricultural investment – agrifood  Long term projections re: global food demand; food price hikes 2008, concerns about food security  Land acquisitions in Africa, South East Asia, Central Asia as policy and market reaction  Some governments promote acquisitions overseas - food importing, official reserves (oil, trade)  Gulf states in Sudan – geographical and cultural proximity  Private investors (agribusiness, finance) - expect significant returns and/or land value increases  Lonrho deals; Jarch Capital deal; private fund activity in parts of Africa  Why Africa? Investors: “Inexpensive land”, “favourable climates”, “labour available”

Other driving forces – biofuels, carbon markets  Government targets, oil prices (though decline after summer 2008)  Lack of systematic data but significant investments in Africa  Mozambique: 16 biofuels projects > 1000 ha, 2.18 m ha total, $3 bn investment (Nhantumbo and Salomao, forthcoming) Source: IEA 2006  Carbon markets: voluntary markets, REDD negotiations?

1.Trends and drivers 2.Can local people benefit?

 Polarised debates; assess risks & opportunities, develop ways to maximise local voice and benefit  Major risks: asset loss, food insecurity, marginalisation...  But also opportunities: harnessing capital, know-how, market access...  Terms and conditions key – What business models? What benefit sharing? Who decides and how?  Not just investor-state deal, triangle with local resource users (decisions, benefits)

Security of local land rights Population density (UNEP, 2004)  “Africa has most of the underutilised fertile land in the world” (private fund manager); but population pressures, need for data on land availability  Secure rights key to minimise arbitrary dispossession and maximise local benefit  Local land rights may be undermined by inadequate recognition, major power asymmetries...  Need to step up efforts to secure local land rights and support local people get a better deal  Recognition of local rights, accessible recording, legal literacy training, support in negotiations...