Regional Rural Development Briefings A series of meetings on ACP-EU development issues West Africa Regional Briefing: Climate change and Land acquisition Ouagadougou, Burkina Faso, 1-2 November

Global land acquisition: new challenges for ACP countries? Isolina Boto, Head, CTA Brussels Office

 Land is an asset of enormous importance for billions of rural dwellers in Africa  Recent trends (press) are prompting a massive increase in global commercial interest in land and natural resources  Creating unprecedented pressures on land resources, especially in Africa

 Although estimates are difficult to verify, recent (IFPRI) and Grain suggests significant levels of activity over the past five years in foreign investors acquiring large tracts of arable land in developing countries.  Secrecy about deals  What is grabbing, what is investment?

According to the press: a demand of at least 42 Million Ha in less than one year, two-thirds of which was in sub-Saharan Africa

 The land highest in demand is close to water resources, irrigated at a relatively low cost in infrastructures, and closest to markets and from which the produce can be exported easily  The land acquired is not intended to produce crops to sell on the world market or to feed the local population, but rather to meet food and biofuel demand in the country that invested in this land

Concentration in 10 pays of which 5 are in Africa (Sudan, DRC, Mozambique, Madagascar, Chad and Zambia) In Africa 53% of the land is over 6 hours away from a market (24% in Latin America)

Threats  Commodity traders, agri-food corporations, private investors see investment in farmland as an important new source of revenue.  Land acquisitions create the risk to move towards large scale mechanised farms and monoculture systems threatening small farmers and diversified agriculture.  Lack of compensation to communities

What basis for development, what agriculture? –intensification or expansion –type of investments for better productivity –medium-scale agriculture coexisting with the small farmers? or –mega-farms and a large number of smallholders? –What role and process to involve for the various actors

Needed actions Investment in agriculture IFPRI estimated the global incremental agricultural public investment required— the additional amount necessary to meet the MDG goal of halving poverty by 2015—to be US$14 billion annually for all developing countries. Sub-Saharan Africa ranged from US$3.8 to US$4.8 billion

Needed actions Careful examination of the terms of the agreements between foreign investors and host countries, to ensure technology transfers and that food production on local farms will also benefit farmers ( basis on informed and voluntary consent and not expropriation; direct participation, cash transfers (including rent)…

 Enforceable code of conduct to ensure the participation of local producers, respect for customary property rights, appropriate compensation, sustainable management of natural resources, and fait trade policy rules  Governments must take the lead in land policy and tenure reform and donors support it.

 Strengthening local institutions with responsibility for managing land rights and related disputes.  Collaborative business models (contract farming, joint ventures)  Strengthen negotiating rights of small farmers and communities

 International code of conduct for land acquisition and a minimum set of principles (UN). To assist investors and host governments in the negotiation and implementation of large-scale land leases and acquisitions.  EU WG on Land  Civil society and farmers dialogue  Work with media

 A multilateral and regional approach to avoid countries competing for FDI and lowering the requirements on investors.  A key element in a code of conduct for foreign land acquisition is transparency in negotiations. Existing local landholders must be informed and involved in negotiations over land deals.