Investors including pension fund managers and hedge funds gather in London this week to discuss the opportunities provided by investment in African agricultural land. An estimated 70 million hectares of African land has been sold or leased to foreign investors over recent years but it is an asset class that is causing growing controversy.
Investors are paying £3,660 a head to attend the gathering which is taking place at a central London hotel. Here they will listen to advice about what has been described as “one of the greatest investments in the world,” but they will face protests from international development and environmental charities who oppose the African ‘land grab’.
Agricultural land in Africa is attractive to investors as it can be acquired relatively cheaply and fulfils the demand for increased food production from a growing world population. Its supporters argue that it is involving Africa in increased global trade which contributes to the continent’s economy. They also cite investment in rural communities as another benefit of western ownership.
However opponents argue that many acquisitions have led to hardship for local people who have seen none of the promised benefits. Kenneth Richter, of Friends of the Earth, accuses investors as belonging to an industry which has led to the local population being dispossessed of their land and means to feed themselves “sometimes through promises, sometimes at gun point.”
A local farmer told Channel 4; “When they first came they told us an investor was coming and we would develop the land alongside one another. They didn’t say the land would be taken away from us entirely.”
Business journalist Nissi Ekpott concedes that some acquisitions have had an adverse affect on the local population but insists that this shouldn’t discourage future investment.
He says; “Statistics show that 84 per cent of businesses fail in their first year. But this does not mean that starting a business is bad. Instead measures should be put in place to reduce the rate at which start-ups fail. The same applies to land deals.”
Do you believe that western investment in agricultural land will benefit Africa or is it land grabbing? Share your thoughts with us below.
