The Land Rush in West Africa – Investors and investment models Ward ANSEEUW
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Transcript of The Land Rush in West Africa – Investors and investment models Ward ANSEEUW
The Land Rush in West Africa – Investors and investment models
Ward ANSEEUW
West Africa
Source: Land Matrix, base 2011
Host countries
# projects
ha
Source: Land Matrix, base 2011
Concentration of investments
Source: Land Matrix, base 2011
The investment dynamics – new actors, new investment models
Investors - Africa
0
10
20
30
40
50
60
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90
China
Saudia
arab
ia UKInd
ia
south
Afri
ca USA
Nether
lands Ita
lyEgy
pt
Franc
e
Canad
aUAE
German
y
Portug
al
Sweden
Brazil
Israe
lLib
ya
Djibou
ti
Nigeria
Norway
Qatar
Austra
lia
Belgium
Malaisia
Singap
our
Japa
n
Num
ber o
f ann
ounc
ed d
eals Announced/Reported deals
Investors in Africa
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5
10
15
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25
30
# projects verified
Investors in West Africa
Investors
• Traditional Western food-producing, processing, and exporting companies seeking to increase market share
• Capital-rich / food insecure Land and water scarce populous but capital-rich (Asian countries, Gulf States - China: 20% of world pop / 9% of world arable land)
• New actors – Outside of agriculture (financial sector, …)
• Direct gov. involvement• Sovereign wealth Funds• State-owned enterprisesAvoiding markets
• Hedge funds,• Pension funds• Invest banks• Asset management compDiversifying portfolio/ speculation
• Private investors
7 land investment models in Africa
Independent farmer model
Associative farmer model
Cooperative farmer model
Speculative 1000-day model
Asset management and Investment funds model
Nucleus estate model
Agribusiness Estate model
High failures
Increased integration
Few inclusive models
Adaptation strategies
Non-land investment models and “Production” grabbing
Commercial banks engagement in primary agricultural production
Agricultural engineering/asset
management companies Investment/equity funds
• High cost of productive, competitive agricultural production (Increase of debt - Input prices increase - the land is not enough as collateral) - no collateral
• Internalisation - The production is never owned by farmer• Price risk - managed through hedging on futures markets (SAFEX)• Production risk (flood, drought…) is covered by the multi-peril insurance &
geographical/commodity diversity• Lowering transactions costs• Speculation
A complex and inter-dependent environment …
Drivers
LT Demographic
Change in diet and energy use
MTFood production
BiofuelsIndustrial production
Forest/fibre productionEcosystemic
Services/TourismSpeculation
Triggers
Food price crisis
Facilitators
-Land governance-Democratic governance -Economic
governance and market regulations
-Crisis of family farming (the
perception thereof)
A GOVERNANCE PROBLEM
(not an investor one only)
DOMESTIC land acquisitions
Large-scale land acquisitions as aggravator
DriversFood production
BiofuelsIndustrial production
Forest/fibre productionEcosystemic
Services/TourismSpeculation
Triggers
Food price crisis
Facilitators-Crisis of the
perception of family farming
-Land governance-Economic
governance and market regulations
-Democratic governance
LSLA asaggravators
Thank you!
Dr Ward ANSEEUWCIRAD Researcher
Post Graduate School of Agriculture and Rural DevelopmentUniversity of Pretoria
Pretoria 0002South Africa
Tel: +27 (0)12 420 5022Fax: +27 (0)12 420 3206
Websites:
www.cirad.frwww.up.ac.za
www.landportal.info/landmatrixwww.commercialpressuresonland.org