Africa’s response to large-scale land acquisitions Listening to different voices in Africa

Peter Roberntz, WWF Sweden

SIANI expert group on Chinese land investments - Seminar 9th May, 2012

WWF & history Forests & China Voices on Biofuels Biofuel Cases Reflections & questions

Large Scale Land (Biofuel) Investments in South & East Africa

They contribute to development

No, it is land grabbing

Jakten på biobränslen Hot eller hopp för Östafrika?

Forests, illegal logging & China….

Chinese investments & trade…

http://www.commercialpressuresonland.org/press/expert-china-hungry-african-resources

January, 2010 Dr George Jambija, from the UDSM Geography department;

“…China has a strategy for Africa. Does Africa or Tanzania have a strategy for China? Corruption is a serious crime in China. Why do Chinese investors become corrupt only after investing in our countries?“ The country is one of Tanzania's top five investors. TIC records indicate that in 2007 alone, China invested $3 billion in ten African economies, of which $111 million was invested in Tanzania. In the same year, the total trade volume between the two countries stood at $290 million, of which China's exports were $180 million and imports $110 million.

Between July 2005 and January 2006, China accounted for all indigenous hardwood log exports and three-quarters of sawn wood and raw material. Levels of legal compliance can also be interpreted in terms of tax compliance, with no revenue collected for up to 96% of timber harvesting in southern Tanzania during mid-2004. …Kilwa District Council …cautiously estimated that under-collection of natural forest product royalties at district level during 2003 and 2004 resulted in up to USD 58 million lost annually …. …

http://wwf.panda.org/wwf_news/?uNewsID=204290 http://www.illegal-logging.info/approach.php?a_id=71

Tanzania; Forests & illegal logging…

Mozambican law prohibits the export of primary logs, or unprocessed timber from a number of valuable species; the government hoped that this would force overseas buyers (among which Chinese companies are significant players) to invest locally to develop a sustainable industry. However, the rules are often ignored and licenses granted for logging and export do not guarantee legality. Officials in the National Directorate of Lands and Forests say they lack the resources to enforce the law.

http://www.illegal-logging.info/approach.php?a_id=115

Mozambique; Forests & illegal logging…

Mozambique; Forests & illegal logging…

Oct 2007 “…Mozambique has adequate laws to address illegal logging but the income generated by the illegal logging has created a system which will not be easily dismantled…”

US Chargé d'affaires Todd Chapman

http://www.cablegatesearch.net/cable.php?id=07MAPUTO1207

Interview, Maputo Nov 2011

• Mozambique is losing out large in tax revenue due to illegal activities.

• Government increasing taxes per cubic meter for those who have legal harvesting.

• Mozambique has a great regulatory framework but it is not implemented!

• Tax system and lack of imposing laws is undermining legal businesses and the establishment of value chains in the country.

Mr Graeme White, , Dalman company with forest management of 26 000 ha Miombo concession in Sofala Province, sawmill and furniture manufacturer and sales.

Forests & illegal logging…

http://www.globaltimber.org.uk/mozambique.htm

Mozambique; Forests & illegal logging…

Back to biofuels…

Tanzania; Voices about biofuel over time…

Tanzania National Biofuel Taskforce (NBTF) Guidelines 2008: “In order to reduce the anticipated risks and capture the opportunities it will be necessary to take into consideration issues of sustainability in tandem with principles of sustainable development…properly implemented biofuel projects will bring about a win-win situation to all involved parties.” …. The potential benefits of biofuels are immense, and they include among others, the following:…enhancing energy security, creation of employment, diversification of rural economy, market for agricultural energy crops, saving of foreign exchange equal to the value of imports substituted,c ontribution to cleaner environment, halt deforestation and desertification, facilitating technology transfer; enhancing food security…. “

2008 “…I see it as a unique opportunity for the African continent …I have in mind the vast unoccupied land in Tanzania which can feed the whole of East Africa without necessarily causing a glut if well utilized…” Bernadina Kayumbe, The Citizen (Dar es Salaam) “No land is unused so the whole concept of compensation is flawed compensation for what – the potential the land holds? They are not aware of what they are letting go of. What the industry is really doing is redistributing the benefits from the land, centralizing it, removing the benefits from the local populations and focusing its potential through a few external investors…” Anonymous Voice in Tanzania

Tanzania; Voices about biofuel over time…

“…many foreign companies are coming to invest on biofuels…. This is an opportunity in trade once Tanzania make land use plans for all villages before allocating land for bioenergy supply crops. That is the only way to meet requirements for villagers scientifically and find extra land for the biofuels production…” Web site of National Land Use Planning Commission 20 th of April, 2009

Tanzania; Voices about biofuel over time…

Tanzania; Some voices over time…

Village voices 2008 “If Jatropha farming cost less labour and resources than Maize and at the same time has greater cash than Maize, I will definitely turn my Maize field into Jatropha, I know if many people do this, there will be a food shortage in our village but as long we have money we can buy food somewhere else!” Mr. Mohamed Ali, Mavuji Village, Kilwa, Tanzania

“…I sometime feel ashamed going to the biofuel office and ask their help for my people; they have been so good to us and I now feel that it is too much! They have been involving us in every step they take in their farm, I just feel that, if they continues like this, our community will benefit so much from BioShape….” Mr. Yusuph Mohamed Tangi-Mavuji Village Chairman

Mozambique; Legal framework of land aquisition

Mozambique; Authority on biofuel investments

Meeting with Josefa Jussar, Head of Environmental Licensing Departent, National Directorate of EIA, Ministry of Environment, 2010 The following information was a received: - Process of developing sustainability principles & criteria has not been

very clear. - The roles and mandate has not been very clear. Not until the end the

National Directorate of Environment Impact Assessments has been involved.

- Expected responsibility of the National Directorate of Environment Impact Assessments. However, the transfer process is unclear.

- Regarding maps the Agro-Ecological maps exits, but more detailed maps are needed. Mapping should be satisfactory prior to land allocation by the Ministry of Agriculture

- Marginal land & food security is still a unclear area where development is needed.

Some Biofuel Cases… Tanzania

Some Biofuel Cases… Tanzania

Some Biofuel Cases…

Some Biofuel Cases…

The Final; • In 2011. BioShape goes bankrupt • BioShape is accused of illegal logging • Community has lost land rights to TIC

Some Biofuel Cases… Tanzania

”New” Chinese Biofuel investors in Tanzania…??

2012 – Information from WWF staff in Tanzania A group Chinese investors are looking for land for investment in Kilwa and Lindi. Already have advanced in their processes. Furthermore in February 2012, they organized a study tour or learning trip for Regional and District authorities to China. WWF Field person in Kilwa claims that the Kilwa District Technicians already are in the field delineating and mapping Village Land Use Plans (VLUPs). About 36,000 ha in Mitole, Kikole, and Miteja villages is earmarked for KADIL CHINESE LTD! They will be cultivating Sorghum, Maize and Cassava – as raw material for energy production (Ethanol).

Galp Energia began producing biofuels to protect the environment, comply with environmental specifications and extend the energy sector’s value chain

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But….

Some Biofuel Cases…Mozambique

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0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

16,2 18,2

76,5

7,9 8,3

80,1 Número de projectos (%)

Área pretendida (%)

2010 2009 2008

Número de projectos

6 6 13

Área pretendida

38.909 65.906 191.053

Source: CEPAGRI

The decline of biofuel investments…Mozambique

Some reflections & questions…

- The illegal logging and timber trade has been largely driven by the Chinese market.

- The inability of communities to realize the true value of forests & land is opening up for cheap land aquisition

- Is logging a financial pre requisite behind land acquisitions? - To what extent are there ”hidden” drivers behind large scale

investment? - There is a big gap between CSR communication and what is

happening on the ground.

Some reflections & questions…

- So far the majority of biofuel investments have had EU origin,

but many of these have been failing and interest has fallen.

- As investments fail, communities are the big loosers - Are large scale land investments in countries like Tanzania and

Mozambique really a sustainable option?

- Is there a new ”boom” of land investors coming in?

- There is a fundamental difference between supporting large scale vis-à-vis working with mitigating measures to avoid negative impact