Ghana Commercial Agriculture Project: Model Lease Consultancy World Bank Land and Poverty Conference March 2015

2 Overview of Presentation Project Background and Objectives Research Methodology Summary of Project Deliverables –Project Report –Model Lease –Community Investor Guidelines Next Steps – Supporting Implementation

Project Background Commercial Agriculture Investment in Ghana –Investor interest in lands appears to be growing –Demand is being fueled by host country governments, food needs for growing populations, commodity price fluctuations, biofuel mandates, promise of economic growth Potential Benefits of Increased Commercial Agricultural Investment –Local jobs and economic growth, increased income, export earnings, additional food crops for local consumption Risks and Challenges –Displacement of local populations from agricultural lands necessary for staple crops and livelihoods –Inadequate consultation and/or consent –Inadequate compensation and/or distribution of benefits –Environmental and social impacts

Project Objective Identification of practical recommendations, innovative practices, and concrete tools that can facilitate socially and environmentally responsible commercial agriculture investments that benefit investors and affected communities alike. Key Project Deliverables Model Lease Agreement (MLA) Community/Investor Guidelines Project Report and Recommend ations

Research Methodology Project Team Composition Background Research – Identify key land tenure issues, existing framework for commercial agricultural investments, and best practices. Field Research – Geographic Approach – Range of Stakeholders Consulted – Data Collection

Project Report Key Elements Identifies the legal, policy, and institutional framework for commercial agriculture. Identifies gaps, inconsistencies, and challenges across the legal, policy and institutional framework, both statutory and customary. Identifies twelve (12) key findings from the project field research. Innovative models for inclusive commercial agricultural investment

Model Lease Agreement Annotated commercial land lease Designed to fit the Ghanaian context Provides terms and conditions grounded in local and international best practices

Model Lease Agreement Key Elements Contains innovative provisions that distinguish it from a traditional lease Incorporates international principles and guidelines such as the VGGTs, IFC Standards, and WB Safeguards Reflects variants of land ownership and tenure systems across Ghana Offers a range of alternative terms and provisions depending on needs/situation Critical Limitations Not a substitute for fair and equitable negotiation Should not be used verbatim Effective use requires inclusive and ongoing community engagement MLA is just one step in the process of creating socially responsible agricultural investments

Model Lease Agreement Structure Key Lease Provisions: The MLA is organized by sections and contains model language for key lease provisions. Summary: Provides an explanation and overview of each provision. Strategic Point: Highlights major issues that should be considered or addressed by the parties.

Community/Investor Guidelines The Community/Investor Guidelines offer information aimed at building the capacity of local communities, investors, and government actors related to processes and best practices for socially responsible and sustainable agricultural investment.

Community/Investor Guidelines Key Elements Organized around investment phases Identify key issues and challenges for communities, investors, and government Propose best practice options for investors and communities to consider Discuss and link to key provisions of Model Lease Incorporates global and Ghanaian investment standards and policies Critical Limitations Communities may require additional support to make full use of guidelines To be effective Guidelines must be shared and understood broadly Implementation of the Guidelines will require financial resources As each community and investment is unique, guidelines do not address all issues Not a substitute for qualified and objective professional counsel.

Community/Investor Guidelines Structure Guidelines are organized around five phases of investment process. For each phase recommendations are provided for each stakeholder group: communities, investors, government. Text boxes provide additional information on key issues. Special focus is paid to actions that can bring women into the investment process.

Implementation and Next Steps A concerted effort is needed to share and disseminate project findings Building the capacity of local communities and government actors will require sustained commitment of financial and human capital. Project findings and deliverables will need to be refined and modified as investors, communities, and government agencies begin to utilize the MLA and the Guidelines. Important to regularly collect and share information on new and emerging practices among stakeholders in Ghana. Establishing a multi-stakeholder forum at the national and/or regional level could help to leverage successful practices.

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