The focus of the seminar was to explore the increasing interest in land acquisition in Africa from the different perspectives of the major stakeholders. It took place at Sida on the 10th of November, 2010.
Future Tanzania Vigorous Trade Partner or Dependent Museum?
Future TanzaniaVigorous Trade Partner orDependent Museum?Presentation at SIANE Seminar 10th November 2010Pär Oscarsson, Consultant African Opportunitiespar@afropp.se
Vision for Africa• Problem orOpportunities?• Causes or Symptom?• Climate Change• Food Security• Deforestation• Population Growth• Urban Migration• Land Security• Lord Nicholas Stern:• "We will not overcomeworld poverty unless wemanage climate changesuccessfully. Ive spent mylife as a developmenteconomist, and its crystalclear that we succeed orfail on winning the battleagainst world poverty andmanaging climate changetogether. If we fail on one,we fail on the other."Decca Aitkenhead interview with Nicholas Stern, The GuardianMonday 30 March 2009
USE OR LOOSE!From Un-Sustainable To Sustainable
VISION 2025TODAY FUTURE?Can this change be done withoutconflicts or compromises?• ‘Stakeholders in agricultureenvisage an agriculturalsector that is modernised,commercial, highlyproductive and profitable,utilises natural resources inan overall sustainablemanner and acts as an• effective basis for inter-sectoral linkages by the year2025.’• Ministry of Agriculture, Food Security and Cooperatives(2009)
Why are Investors looking for land?Challenges for Agric. Growth• Poor infrastructure• Lack of access to finance• Difficulties securing land• Limited market access andeconomies of scale• Taxes and export barriers(From SAGCOT Concept Note 2010)Investors and Finance Institutions wantSecure Production or Supply to minimiserisk.Secure access to land reduces risk
LAND in Tanzania• General Lands (>99 years leasehold – 98 years through TIC)• Village Lands (in process of being formalised - certificates)• Reserved LandsVillage Land Process for Investments - Actors• President - Government - TIC• Village• Investor
Three Steps in Land Process1. Investor registered and approved at National Level2. Village meetings , demarcation, maps, approval3. Formal process, valuation, compensation, Letter ofOffer, Derivative Rights from TIC
Democratic Process• Do “we” in the westtreat Tanzanians asgrown ups?• Can we trust them tomake their owndecisions?• Do we respect thedesperate need formore productive use ofland and higherincomes?
TECHNICALVillage Land ProcessCHALLENGESMAPS:Old maps, few villages surveyedReserved areas not well demarcatedCLIMATE DATAScattered Records and DataWATER DATAOld dataSOIL MAPVery rough – not useful forinvestmentsBIOMASS – N/ALand Use PlanningParticipatory, of high democratic value butof little value for investment purposes
Village Land ProcessADMINISTRATIVE CHALLENGES•Poor motivation among staff causes delays•Media debate makes staff insecure in their roles•Very few examples of successful processes•Still strong anti-investor feelings among manydecision makers•No fixed maximum time for a process•Lack of experienced valuators for valuation andhigh expectation on value for land
TODAY• Favours very large investors, difficult forsmall/medium• Few Players and many Referees who wants a sayin the land processWay Forward• Strong need for more active Players• PPP models to be developed• Soil, biomass etc studies for investment decisions• Focus on development corridors or clusters(i.e.SAGCOT)
Way Forward• Roles and Responsibilities to be agreed• Who takes care of local problems such ascharcoal makers, pastoralists etc?• What and how can other actors contributepositively to the process?• Agree on the need for investments and how torelate to local farmersTIC data indicate that Tanzania attracted $744 million of foreign DirectInvestments (FDI) in 2008, out which, only 11 per cent of it went toagriculture. (The Citizen 6/9 2010)
PPP - models• Many opportunities forcollaboration• All have to pull in thesame direction• Land remains owned byvillages• Strong legally bindingcontractualarrangements thatsatisfy finance inst.• Strong ManagementSupport for productionsecurity
Example – Block FarmA block farm is a continuous, integrated farming area operated under sharedownership, by professional management. The approach will:• Facilitate effective, professional management of block farm area;• Make it easier to attract & manage commercial financing and donorsupport for capacity development & other services;• Make it easier to construct grid roads and drainage infrastructure. Gooddrainage infrastructure eliminates water logging. Good roads act as firebreaks reducing incidences accidental fire;• Enable effective provision of extension services for better cane husbandry;• Enable efficient and accurate application of fertilizers and herbicides;• Ensure the harvesting of cane of uniform maturity;• Result in better cost-effectiveness/profitability due to economies of scale.
WELCOMEfrom Aid to Trade!Future TanzaniaVigorous Trade Partner of Dependent Museum?