Blog Posts

Both Zakia and Edwin are right in their observation about the wealth, power and information asymmetries between investors and smallholder land users. That is the reality in Africa today. Nonetheless, it is important that those whose livelihoods will be affected by large scale land deals are given a chance to have a say before these deals are concluded and later on in how they are operated. Elsewhere (see Williams, et al., 2012), we have argued that both state and non-state actors have important roles to play in addressing this imbalance. The state can revise relevant land and water laws to ensure that investors acquiring large tracts of land seek prior and informed consent of main stakeholder groups likely to be affected by the investments. Non-state actors (NGOs, civil society groups) can organize legal literacy campaigns in local languages to inform smallholder farmers about their rights and the process to be followed in seeking adequate compensation for involuntary loss of livelihood.

In response to Jeremiah, decision makers are aware of the issues surrounding foreign direct investment in agricultural land in Africa. They are interested in maximizing the benefits and reducing the negative impacts of these investments. But they often lack fact-based evidence to make sound decisions. That is why the African Ministers' Council on Water (AMCOW) requested IWMI, in partnership with UNEP, GRID-Arendal and FAO, to come up with research-based policy options for equitable distribution of benefits and sustainable management of land and water resources.

If foreign direct investment in agriculture is implemented responsibly and on the basis of an inclusive business model, it can lead to transformational benefits for African agriculture and smallholder farmers. One such model is the out-grower scheme mentioned by Edwin. There are other models. They have had varied records of success in Africa. It is important to research and document the contexts, pre-conditions and factors responsible for successful outcomes. This will help in designing programs to scale-out successful business models.

Reference

Williams, T.O., Gyampoh, B., Kizito, F. and Namara R. 2012. Water implications of large-scale land acquisitions in Ghana. Water Alternatives 5 (2): 243-265.