‘Land grabs’ in Namibia: Blessing or curse?

The bargaining power invariably rests on the side of foreign investors

The Namibian | 13.07.10

By: WOLFGANG WERNER

NAMIBIA has not been spared in the proliferating acquisition of agricultural land in developing countries by multi-national agricultural corporations, popularly referred to as ‘land grabbing’.

Reports about this happening in our north-eastern communal areas have surfaced from time to time, only to be forgotten. Two recent reports in The Namibian of 22.1.2010 and 19.5.2010 have once again drawn attention to this phenomenon. In view of the current consultations about an integrated Land Bill it is appropriate to look at this issue more closely.

This latest story could have happened in any of the other countries where large tracts of land have been availed to foreign interests. An international agricultural company has set up a joint venture with a local company, Labour Investment Holdings and the Hambukushu Traditional Authority. The latter has reportedly approved a 25-year leasehold over 10 000 ha of land in return for a 15% stake in the venture. The joint venture intends to set up a large-scale irrigation project for crop farming. Predictably, the project promises to ensure maximum food security in Namibia through sustainable staple food production and provide much needed employment opportunities.

According to The Namibian, the land in question is situated in the Bwabwata National Park. Although the joint venture claims that no people were living on the land they obtained, The Namibian reported that the area was inhabited by Mbukushu and Kwe or Barakwena people, who depended on utilising natural resources in the forests. The latter claim that they were not consulted, let alone offered to become partners in the joint venture.

These developments raise important issues that need to be debated publicly. Such debates should avoid dismissing foreign investments in agriculture outright. Instead, a sober assessment of the pros and cons of such large-scale investments is required.

In principle, investments in the agricultural sector should be welcomed. The Namibian government has recognised this and initiated a major irrigation programme in the form of the Green Scheme. But accessing funding for the implementation of Green Scheme turned out to be a major constraint. Against this background, foreign direct investment in the sector should be welcomed.

In addition, there are potential benefits such as the development of rural infrastructure, technology transfer to stimulate innovation and productivity increases, quality improvements, backward and forward linkages and multiplier effects, employment creation and potentially an increase of food supplies for the domestic market.

But these potential benefits will not come automatically as the alienation of farmland to international investors has its risks for host countries and rural land rights holders. If the process is not well controlled it can lead to large-scale land expropriation and/or unsustainable use of resources, thereby undermining the livelihoods of local populations.

However, there are options for a win-win situation. In the first instance, a legal and regulatory framework needs to be created to protect the interests of customary land rights holders and assist them in negotiating and implementing deals with foreign investors. This is necessary because the bargaining power invariably rests on the side of foreign investors especially when their plans are supported by the host state or local elites. Moreover, local people are in an even weaker position where they do not have formal title to their land or when rights are poorly documented. This applies to communal grazing areas across the country. In such cases land rights holders cannot make any claims, and since state formally owns the land rural communities thus run the risk of being pushed off.

The Land Bill provides an opportunity to bring about significant improvements in this regard. Firstly, it should make it mandatory for traditional authorities to consult with all the communities under their jurisdictions before large-scale land transactions are entered into. This will go some way to ensure that negotiations are transparent and local land rights holders are informed and involved. It will also ensure that existing land rights including customary and common property rights are respected and that those who lose land are compensated.

Secondly, the inclusion of well defined group rights to land in addition to the individual rights that already exist are required to ensure that access to and management of commonages is governed by law. Amongst other things this will enable communities to say whether land is ‘unproductive’ and/or ‘underutilised’.

Thirdly, current legislation raises concerns about how the benefits of such major investments are going to be shared. Once again, improved accountability and transparency of traditional leaders towards their subjects has to be legally enforced. But different farming models also have different impacts on benefit sharing. Long term lease agreements, for example, are preferable to one–off lump sums, as this provides an ongoing revenue stream; contract farming or out-grower schemes are preferable to plantation type operations as these will leave land owners in control of their land. Explicit measures to enforce agreements are needed.

Interest by private companies to invest in the agricultural sector, particularly along or perennial rivers, is not likely to subside. We have to ensure that Namibia and foreign investors benefit by developing an appropriate policy and legal framework. This cannot be the responsibility of the state alone and civil society will have to make major contributions to this process.
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