Land ‘grabs’ by foreigners on the rise

Large scale farmland in Rift Valley province of Kenya. In Kenya a draft national policy is proposing how much land should be owned by foreigners. Picture: Anthony Kamau

Thousands of poor people in East Africa could be among millions on the continent at risk of suffering evictions or losing access to their land to foreigners who are on an acquisition spree.

According to a new report by the Food and Agriculture Organisation, land acquisitions by foreigners are on the increase in Africa, yet many countries on the continent do not have sufficient mechanisms to protect local land rights and take account of local interests.

This, the report says, is going to increase landlessness among the poor who would not think twice about selling their parcels of land to foreigners.

“Land acquisitions are on the increase in Africa and other continents, raising the risk, if not made properly, that poor people will be evicted or lose access to land, water and other resources,” says the report.

The report reveals a lack of transparency and checks and balances in contract negotiations, a fact that more often than not promotes deals that do not guarantee public interest.

It says that insecure local land rights, inaccessible registration procedures, vaguely defined productive use requirements, legislative gaps and other factors too often undermine the position of local people.

This means that East African countries like Kenya and Uganda where land laws are still weak and unco-ordinated, are likely to witness massive landlessness as their mainly poverty-stricken citizens sell their parcels of land at throwaway prices to moneyed foreign investors.

Kenya, for instance, has never had a single and clearly defined national land policy that could address such loopholes. A draft national land policy, which among other things, would address sensitive issues like how much land can be owned by foreigners and under what terms, is yet to be approved by the Cabinet.

Titled, Land Grab or Development Opportunity? Agricultural Investments and International Land Deals in Africa, the new study covered Ethiopia, Ghana, Kenya, Madagascar, Mozambique, Sudan, Tanzania and Zambia, among other countries.

It warns that such deals can bring many opportunities — guaranteed outlets, employment, investment in infrastructures, increases in agricultural productivity — but can also cause great harm if local people are excluded from decisions about land allocation and if their land rights are not protected.

The study highlights a number of misconceptions about what have been termed land grabs. It found that land-based investments have been on the rise in the past five years. But while foreign investment dominates, domestic investors are also playing a big role in land acquisitions.

Private sector deals are more common than government-to-government ones, though governments are using a range of tools to indirectly support private deals, it reveals.

Concerns about food and energy security are key drivers, but other factors such as business opportunities, demand for agricultural commodities for industry and recipient country agency are also at play.

Although large-scale land claims remain a small proportion of suitable land in any one country, contrary to widespread perceptions there is very little “empty” land as most remaining suitable land is already under use or claim, often by local people.

The report found that many countries do not have sufficient mechanisms to protect local rights or take into account local interests, livelihoods and welfare.

“A lack of transparency and of checks and balances in contract negotiations can promote deals that do not maximise the public interest. Insecure local land rights, inaccessible registration procedures, vaguely defined productive use requirements, legislative gaps and other factors too often undermine the position of local people,” it says.

It calls for carefully assessing of local contexts, including existing land uses and claims; securing land rights for rural communities; involving local people in negotiations, and proceeding with land acquisition only after the citizen’s free, prior and informed consent.

“Ultimately, whether international land deals seize opportunities and mitigate risks depends on their terms and conditions — what business models are used, how costs and benefits are shared, and who decides on these issues and how,” says Lorenzo Cotula, one of the co-authors.

“This calls for proper regulation, skillful negotiation and public oversight,” she said.