1. CORPORATE JOURNEY: CHALLENGES OF PRIVATE SECTOR IMPLEMENTION OF LAND COMMITMENTS David Bledsoe, Landesa Leslie Hannay, Resource Equity Kate Mathias, Illovo Sugar Limited

2. 2 Illovo Sugar Africa’s largest sugar producer Malawi, Mozambique, South Africa, Swaziland, Tanzania, and Zambia 64,200 ha owned/leased -- ~ 113,000 ha out- grower March 2015: progressive land commitments – “zero tolerance” and VGGT+ June 2015: implementation road map

3. 3 Landesa International NGO -- land access and tenure security mission Global reach 140 staff members -- 13 offices Recent focus – LSLBI and corporate engagement/clientele DFID LSLBI project -- Responsible Investments in Property and Land (RIPL) RIPL case studies: Ghana, Malawi, Tanzania

4. 4 Malawi Case Study Objectives 1.Obtain detailed operations information from an investor that has made clear, progressive land commitments, including the facts linked to several land disputes 2.Evaluate investments in both large government “legacy” concessions and significant out-grower schemes 3.Focus upon women’s access and rights to land 4.Provide information and recommendations to inform Illovo’s commitment implementation road map 5.Fine tune the content and approach of future RIPL case studies

5. 5 Malawi Case Study Illovo operations in two locales: Nchalo and Dwangwa 80% of cane comes from Illovo leased land Out growers provide the remainder Lease concessions obtained from predecessor Government expropriation in ‘60s and ‘70s; compensation paid by government to communities Several existing disputes Recent boundary survey in Nchalo

6. 6 Methodology Interviews of Illovo management in South Africa and Malawi Interviews with: –National government –District government –Out growers –Grower’s associations/trusts –Customary authorities –Community members/smallholders –Disputants

7. 7 Key Finding 1: Communication and Community Engagement Are Critical Lack of systemic plan Unidirectional Focused upon problems Customary Authorities Focus Observations Commitment to Routine Engagement Bi-Directional Aimed at all stakeholders (women) M&E Solutions Routine business cost Carefully designed Emphasize women Refinement via M&E Implications

8. 8 Key Finding 2: Investors Must Earn and Re- Earn an Enduring Social License Illovo land rights seen as illegitimate by many Ongoing general resentment CSR perspective Observations Acknowledge historical context and popular sentiment Watch for withdrawal of license Avoid CSR perspective Solutions Investors need to see business risk of loss of license CSOs are important allies Historical situation matters Implications

9. 9 Key Finding 3: Investment diversity/complexity makes creation of useful tools difficult Diversity of parties Diversity of structures, Diversity of management approaches Diversity of maturity/stage Observations Experience Flexibility Perseverance Refinement Solutions Gender is a challenge Costs are significant No single approach Refinement is mandatory Implications

10. 10 Key Finding 4: Gaps can leave investors as the “last man standing” Social services vacuums Infrastructure deficits Governance gaps Observations Understand the landscape Assess investor appetite Do the best possible job Solutions Acknowledge investor role Assess and plan for a role as proxy Do what is called for up front and make staged contributions to the landscape Implications

11. 11 Key Finding 5: Intra-household issues are difficult but critically important Women are often not equal beneficiaries Investments can entrench practices that disadvantage women Investments can leave women worse off Observations Anticipate, identify, and address gender differences Well-defined, multi-touch, and adaptive designs Adequate budgets and staffing See and address customary attitudes Solutions Investor appetite is a must Consider women first Specialized expertise is needed Implications

12. 12 Conclusions “Zero tolerance” is not an immediate end state Meeting land commitments is a process – a journey A well-conceived plan is mandatory Land Commitment Illovo Group Guidelines on Land and Land Rights launched March 2015 Develop Plan to Implement Commitment Development of Illovo’s Road Map on Land Rights November 2015 Execute Commitment Establish Land Policy Roundtable (November 2015) Develop Communications & Reporting Plan, Stakeholder Mapping, Assessments of land investments, etc. (Present)

13. 13 Conclusions II Ensuring that investments benefit both women and men and anticipate and mitigate negative gender- related impacts is a big task An enduring social license is as much about losing it as establishing it Land Commitment Illovo Group Guidelines on Land and Land Rights launched March 2015 Develop Plan to Implement Commitment Development of Illovo’s Road Map on Land Rights November 2015 Execute Commitment Establish Land Policy Roundtable (November 2015) Develop Communications & Reporting Plan, Stakeholder Mapping, Assessments of land investments, etc. (Present)

14. 14 Thank You