understanding land investment deals in africa - Oakland Institute

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fertilizer instead of burning it all as fuel. According toDeng, the generation of scientific data on the area isamong the central benefits of the investment: “Theyare turning into a research center. If you want to havereliable rainfall records you can only go to Concord.If you want soil analysis, you can only go to Concord.If you want ideas in pest control, you can only go toConcord.” 183Despite the positive spin from project proponents,group discussions that OI held with residents in thehost community contradict many of these assertions. 184The local residents reported the health center asbeing not functional and with a largely absent nurse.With regard to the training in agronomy, one residentcommented: “These people came and promised thatif anyone is interested in cultivating, the companywill provide assistance. Since that time, they’ve nevercome to implement their promise.” Another residentexpressed disappointment that local people were notgiven permanent positions with the company:“Since they have started, they have notemployed our people. They just went to theirarea and left us here. It is not because ourpeople cannot do anything. We are strong.We do not know why they are not hiring ourpeople.” 185Farming equipment Concord AgricultureFor the time being, the local residents were content towait to see if the promised benefits would materialize.However, they also appear confident in their ability tooppose the investment if more job opportunities forlocal people are not made available: “Up to now, we arestill waiting. If they are not going to employ people, thenthey will chase them away because the land belongs tothe community.” 186The Oakland Institute understanding land investment deals in africa: south sudan | 41
5. CONCLUSIONSouth Sudan experienced a large influx of investmentafter the signing of the CPA in 2005. Companies usedthe ambiguity of the prevailing law to secure favorabledeals for themselves through agreements with localpowerbrokers. There was very little resistance tothese investments, in part due to the underdevelopedcivil society in South Sudan and the fact that manyinvestments have not yet become operational. This isstarting to change; rural communities are beginning todemand that their ownership rights be respected andthe government is beginning to take note. For the firsttime, in September 2011, the president of South Sudanresponded to the demands of affected populations,promising to conduct a review of lease agreementssigned during the interim period and to pass newprocurement legislation to regulate future land deals. 187Despite positive developments, a more fundamentalchange in the government’s development paradigmis necessary to bring it into line with its prioritiesof improving food security, reducing poverty, anddeveloping rural areas. The government’s recognitionof customary land tenure in the transitional constitutionand the Land Act is a step in the right direction, butwithout implementation the laws’ protections are notavailable to affected populations. As the nation movesinto the post-independence period and interestsbecome entrenched, it will become increasinglydifficult to enact any meaningful reform. Investors andtheir local partners often benefit from the opaque rulesand procedures, making it more difficult to put in placea framework for responsible investment.Unless the government is better able to prioritizethe development needs of local populations, landinvestments may well become a source of socialunrest and conflict. There is a long history of violenceassociated with land-based development projectsin South Sudan, and if the government continues toallocate large land areas to foreign companies in directcontravention to communities’ ownership rights, it willbegin to undermine peacebuilding efforts. In countriessuch as South Sudan, with its large populations ofpastoralists, there is an even greater risk of conflictsince communities require access to large areas of landto graze their livestock. Conflict also provides a fertileground for certain kinds of investment. Opportunisticcompanies can take advantage of weak institutions andunclear laws to secure favorable deals for themselves.Without regulatory oversight, it is very difficult for thegovernment to even monitor what is happening, muchless enforce its regulatory requirements.South Sudan desperately needs private investment.If done in a responsible manner, agriculturalinvestments can help to jumpstart the economy,provide food and services for struggling populations,and develop building and road infrastructure in ruralareas. By adopting business models that maximizeemployment opportunities, investments can createjobs for rural communities and provide young peoplewith an alternative to recruitment into armed groups.For investment to deliver on its promises, however,the government must place local developmentpriorities at the heart of all aspects of investmentnegotiation, contracting, implementation, monitoring,and enforcement. It must ensure that communitiesmeaningfully participate in all decisions that affect them,and find ways of fairly and efficiently operationalizingcommunity land ownership. Most importantly, thegovernment must concentrate its time and resourceson supporting smallholder farmers. Although theirproductive capacity has been undermined by insecurityand a lack of agricultural support services, smallholdersThe Oakland Institute understanding land investment deals in africa: south sudan | 42
Page 2: Understanding Land Investment Deals
Page 5 and 6: Table of Contentslist of Acronyms..
Page 7: executive summaryOn July 9, 2011, t
Page 10 and 11: INTRODUCTIONAround the world, ferti
Page 12 and 13: 1. COUNTRY CONTEXTBox 1. South Suda
Page 14 and 15: the population—are moderately or
Page 16 and 17: Questions Surrounding the Availabil
Page 18 and 19: 2. LEGAL FRAMEWORKSouth Sudan’s l
Page 20 and 21: within the local government council
Page 22 and 23: Habila mechanized schemes, Nuba Mou
Page 24 and 25: 4. CASE STUDIESThere was a large in
Page 27 and 28: Nile Trading & Development Contract
Page 29 and 30: when Kinyeti representatives travel
Page 31 and 32: South Sudan. There is a tendency fo
Page 33 and 34: the Equatoria Teak Company and its
Page 36 and 37: of encroachment by the local commun
Page 38: which the CDC and Finnfund are will
Page 41 and 42: provide the local community with so
Page 43 and 44: officials with the state and centra
Page 45: all of the 50,000 tons of food it c
Page 49 and 50: ENDNOTES1 This is an updated figure
Page 51 and 52: 68 “South Sudan Launches Private
Page 53 and 54: 171 Ibid.172 Taban Deng, op. cit.17

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