Land Acquisition in Zambia

Due to the effects of food price crisis of 2007-2008, in that respect was ontogenesis concern among the nations close to the food bail. at that place was surge in demand for food products by the food importing countries and subsequently food-producing countries impose some restrictions on the food exports of food jots. In order to foregather the growing demand of food and face increasing pressures on indispensable resources and pissing scarcity, the countries with body politic and water constraints rented an alternative means of producing food. attainment of farm tillage in the develop countries by these countries seeks to netherstand food security. more(prenominal) on the fetch encyclopedism drive) These enthronements ar not driven by the whim of comparative advantage in the bounteous-scale toil of indigenous crop (Mann and Sm each in aller 1 January 2010). The spicyschooler oil prices in 2007-2008 were an early(a)(prenominal) driver, which triggered interest of developed countries to acquire kingdom for energy crops. Global monetary crisis besides encouraged investors to invest in foreign works. The value of some(prenominal) food and fertile husbandry was set to add, making them an at bundleive newfound investment.Budgetary resources in developing countries may not be adequate to meet infrastructural investment necessary to use the lay to its potential. Some developing countries be seeking foreign investment to exploit their special land which is currently un utilize or under-utilized. This may shoot to creation of jobs in campestral aras and in that location may withal be investment in health and education sector. Technology transfer by the investor countries may lead to increase in farm productivity. However these investments argon not without change e very(prenominal)place offs. at that place be concerns about the impact on local anaesthetic miserable plurality, who lack access to and control over lan d on which they depend. at that place ordure be local unemployment because of disgorges with imported workforce and high item of mechanization. It will also lead to increase in regional land prices by means of soaring competition with regard to acreage and resources, and thus little access of land to sorry people. Foreign investors washbasin also emerge as strong competitors to local workrs, especially minor(ip) households.There is also attempt of land conflicts in territories without well defined land deed of conveyances (Bicker and Breuer 37 April 2009). In some types, the land leases are justified on the fundament that the land being acquired by the foreign investor is unproductive or underutilized. However, there may be that the land is being used by pathetic for purposes much(prenominal) as grazing animals and gathering fuel wood or medicinal plants. These uses tend to be undervalued in official assessments because they are not marketed, but they can provide valuable livelihood sources to the poor. (Von Braun and Meinzen-Dick 2 April 2009) Large-scale land acquisitions may pass on jeopardize the welfare of the poor by depriving them of the safety device-net function of this type.There can be misappropriation of arable land, displacement of indigenous people without compensation and migration to cities. So it is crucial to ensure that these land deals, and the environment within which they take place, are designed in a ways that will reduce the threats and facilitate the win-win situation for all the set forthies involved. According to Sustainable nurture innovation briefs (January 2010), There are three sources of law governing foreign investment in agricultural land. 1) Domestic law 2) International investment contract 3) International investment agreements (IIAs)According to Ministry of Agriculture and Co-operatives of Republic of Zambia, Zambia has the best surface and underground water resources in Africa, with umpteen rive rs, lakes and dams. Sharing borders with eight countries, Zambia is centrally situated as a gatewayway to both southern and central Africa. This location is strategically advantageous by placing Zambia in a position to exploit the growing regional markets of SADC and COMESA, and be an active subprogramicipant in regional and internationalist horticulture trade initiatives (Source The best of Zambia).Even with resource endowment for development of a wide range crops, bloodline, and fish presumptuousness the diversity of its agro-ecological zones, there was lack of cultivation because initially labour was forced toward mining sector. urbanization kept the people to cities only. There was lack of infrastructure and utilities in country-bred areas which imposes a higher affectionate cost in moving towards agribusiness sector. The policies which in like mannerk place were directed towards the development of mining sector, neglecting agriculture. It is in general seen that the developed countries are in the first place with expanding industrial sector.These developed countries take up initially accumulated the surplus in agriculture sector and then invested that surplus for expansion of industrial sector. So there is invite to develop agriculture initially. Zambia is rich in mineral resources. To explore the potential there is drive to develop agriculture sector. In Zambia, most farmers are insecure in the monomania of the land they work in. Less than 5% of them apply leasehold title for their land. Most farmers succumb rent to titleholders or have some kind of sharecropping arrangement with the title owners.Others depend on land own either by the political relation or private owners, or on council or forestry land for their musical accompaniment. Those supporting in areas of customary land use do not need to be consulted before mining operations are allowed, and are commonly not even aware of the possibility of placing land disputes before t he Lands motor lodge (MacCuish and Frankel on behalf of Halifax Initiative Coalition). The efforts of the Agriculture Department to mark off self-possession and use of agricultural areas were hindered by the lack of information about who owned the land.According to report of Global Times ( 9 September 2009), The Zambian political sympathies is to devise measures that would smoothen and quicken the acquisition of title whole shebang by prospective land owners, this was done in a play to empower the less privileged people to own land in the country. The poor people can use land as corroboratory for them to access loans for land development. According to Ministry of Agriculture and Cooperatives of Zambia (26 January 2010), Out of 75 one thousand thousand hectares land of Zambia, 43 million hectares (53%) is classified as medium to high potential for agriculture output.So far only 6. 02 (14%) of agricultural land is currently utilized. Irrigation total potential is 2. 7 million he ctares out of which about 156000 hectares is under irrigation. Framers are given a bang-up price for grain but due to lack of market access the move is outweighed by poor infrastructure. Zambia endowed with rich natural resources call for investment by foreign investors to strengthen Zambias economic muscle (Zambia Mail date May 11, 2010) Acquisition of land by the foreign investors is controversial and carriers many risks.Foreign investment can also be made through contract farming and out-growers scheme or joint venture or provision of infrastructure by the investor country. (David Hallam 6 celestial latitude, 2009) According to FAO (2001), shorten farming can be defined as an agreement between farmers and process/marketing firms for the production and supply of agriculture products under forward agreement, oftentimes at predetermined prices. The arrangements also invariably involve the purchaser in providing a degree of production support through, for example, the supply of i nputs and provision of skilful advice.The basis of such arrangements is a commitment on the part of the farmer to provide a specific good in quantities and at tonus standards determined by the purchaser and a commitment on the part of the company to support the farmers production and to purchase the commodity. In contract farming, farmers have to loose some freedom over the choice of crops they want to grow.The main commodities produced by gnomish-scale farmers in Zambia under contract farming arrangements are cotton, tobacco, coffee, sugar, paprika and fresh vegetables. Of late honey, livestock (pigs and dairy cattle) and organic products are also coming up. Likilunga 3 December 2005) Nevertheless, joint ventures between foreign investors and local producers or their associations as partners power offer more spillover benefits for the host country. Mixed models are also contingent with investments in a large-scale core enterprise at the concentrate but also involving outgrower s under contracts to supplement core production. Some disposals have been active in encouraging foreign involvement in such enterprises, as in the Tanzanian sugar sector or the so-called Farm Blocks in Zambia (David Hallam 6 December, 2009).Zambian government has embarked on a programme to open up viable farm blocks in dissimilar parts of country to be involved in primary production and value addition. In Farm Block Development, brass has to provide staple fibre infrastructure such as road, bridges and electrification. The design of Farm block is as follow. There is one core venture of 10,000 Hectares with commercial farms of 1000-5000 Hectares and small holdings of 30-300 Hectares. (Ministry of Agriculture and Cooperatives of Zambia 26 January 2010).The type of business model to be adoptive depends on certain characteristics of the economy i. e. olitical and social conditions, specific circumstances, the commodity refer etc. Land acquisition and commercialization of agricult ure is favorable, when economies of scale are important or there is need for investment in infrastructure. Contract farming or outgrower scheme is desirable when there in need to involve small landholders, but in contract farming boot should be interpreted that contracts are properly implemented and there is no exploitation of smallholders by the big firms. The litigation process in Zambia takes too long and and so enforceability through litigation process is costly and therefore not resorted to.There is weakness of enforceability when contract is breached. Donor funding forms a big part of Zambias spending plan (The Africa report October 2009). china, India, South-Korea and oil-rich disconnectedness countries with land and water constraints are turning to Africa as food security blanket. Saudi Arabia is interested in area of agriculture in Zambia. China is proposing to acquire 5 million acres of land to grow jatropha. genus Jatropha is a perennial plant, which can be used as bi ofuel. woodlet have yield after 2-3 socio-economic classs. In the short come about there will be loss but in long run there will be gains.Income generated from plantation will vary from year to year. Growing Jatropha needs long term investment, which is vulnerable to risk due to uncertainty in price, yield, labour cost and rate of interest. Biofuel can provide hedge against climate change. Jatropha can also be used as a substitute for expensive kerosene, plant food and diesel. It needs less water so there is no need of study irrigation facilities. Jatropha can be planted during spare time in idle or fallow land, for which lot of officially unused land and degraded bush land seems available.Cultivation of Jatropha on throw out agricultural, deforested or degraded land has the potential to improve the nutrient discipline of the soil and reduce erosion. Thus, this may improve the value of the land. However, the expanding use of land for the Jatropha production, even though it is marginal land, could mean that people living in the area would have to find some other places for collecting firewood, herbs and field for pasture land etc. So the selection of land for production should be done very carefully. Land grab in Africa mainly for biofuels has serious implications for food security.This however but it depend on the ownership of the land and how much space the production of Jatropha takes up. Biodiesel is mainly used by developed countries. If the price of food grains increases, then the people in developing country will suffer. Food security could even decline where land and water resources are commandeered by the international investment project at the expense of domestic smallholders or where foreign investments push up land values. There can also be worst representative scenario that there is production of 100 social units energy biodiesel from the inputs of 127 units energy.The advertising that agro-fuels will assist farmers is based on the notion that the decisions about the use of the land remain decentralized within the country. Farmers should be given free will to decide how to plant Jatropha to produce oil for lamps or sop or bio-diesel for their vehicles. But the scenario set up by the large corporations is not what is desirable. There is usurpation of huge tracts of African land for overseas consumption and if they ruin the ecosystem, they conveniently make a move to other areas (MS Zambia Newsletter August 2009).Production of Jatropha is mainly done by the Out grower schemes. It is found that mostly there were no formal contracts for production. Even if contracts exist, there was no enforcement. Even farmers are not satisfied with Outgrowing system. Firms promise to endow the farmers with technology but belong to turn up again to provide information on skillful issues. Production is targeted toward export and fails to benefit Zambian people. This can be sustain by the fact that there exist no refineries in Zambia. There is need to set up a monitoring committee which can observe that all the contracts taking place are implemented.Strict actions should be taken if contracts are not enforced. The land grabbing has become very school and the poor are bound to suffer. There is need to lobby government for some policy changes. Civil societies should come up for the benefit of small holders and there is need to sensitize and assist the poor access and legally own land. Building the capacity of small scale farmers and their organizations to be part of the new agribusiness dispensation through direct investments as well as in partnership with foreign investors is desirable.There is need to empower the rural communities access and communally own land through Community land titles to protect them in the future land concessions. (MS Zambia Newsletter August 2009). There is need by government to put more conducive environment by setting up small claims courts. There is need for further training of smal l-scale farmers so that they can develop skills in negotiating for good prices for their commodities. (Likilunga 12 December 2005) Extensive control of land by other countries can also raise questions of political interference and influence. (David Hallam December 2009).Government maintains secrecy in the deals involving foreign investors. This lack in transparency undermines government accountability and gives an opportunity for corruption. Some recently reported land deals were associated with allegations that investors had paid cash or in-kind contributions to business or other activities run by high government officials or even the president in a personal capacity (e. g. Hervieu, 2009), even where private ownership is formally accepted most of the land is controlled by state (Cotula, Vermulen, Leonard and Keeley 69 2009).It has been seen that incomes are very unevenly distributed in Zambia. Bottom 80% of races in terms of earning are reported to have acquired only 31. 3% of t otal income, while the transgress 20% of population claimed 68. 87% of total income. (Zambian Economist, 31 May, 2008). Non availability of scripted agreement on land acquisition has created disputes in some occlusion area. A vigorous consultative process on land acquisition has to be adopted o defame these land disputes. It is required to have all the deals in the written form.Appropriate Resettlement policy should be in place and adequate compensation should be give to the displaced farmers. Farmers generally practice subsistence farming and the land of cultivation is scattered. Most of the rural population keeps on migrating within the country. The liberalization of the agriculture sector and other reforms in Zambia, were accompanied by the decline in cultivated land and gamboge production. The proportion of households selling to the market and concentration of serves in central areas was also reduced. (Sangrario Floro and Schaefer 84 fall 1998). With privatization, subsisten ce farmers have to move out.Before the reforms, Government caliber all the transportation expenses both within and between regions and gave huge fertilizer subsidy so the prices of food grain as same for all producers. After reforms of 1990s, it was found that the cost of production has increased drastically because of high transportation costs and removal of subsidies for fertilizer, forcing farmers to sell at farm gate only. Thus the supply to market was nil. Evidence can be taken from the copper mines in Zambia, which was privatized in 1991. Large tract of land was required for development of new mines.There was often negotiation with local chiefs for land. topical anesthetic people were persuaded on the trust that they will be relocated to other areas. Most often interest of local people was in deviation with that of investors. Sometimes the local chiefs enter into secret deals with investors and accepted bribes as an motivator to persuade their subjects to acquiesce to inve stors demands. Impact of large scale mining on local community has been negative. There were social conflicts, destruction of livelihood, dislocation and displacement of local communities and environment degradation (Simutanya, ISS paper 165 July 2008).In case of foreign investments, it is noticed that Zambians were not given many job opportunities and people were placed from permanent to rolling contracts leading to casualization of labour. If agriculture land is given in foreign hands, it can lead to similar consequences. Foreign investors are driven by profit motive. They generally us capital intensive techniques driving labour out of work force. They also try to minimize wages to capture more profits in their hands. Profit, rather than having any impact on Zambia economy, is placed in banks or re-invested in companies outdoor(a) the country.But it is also seen that with privatization, all workers came as a union, there was increase in the minimum wages. It can also be expected from agriculture sector. If all agricultural workers work in a huge tract of land then even they can coordinate themselves and demand for demote wages and better working conditions. ). The economical benefits were also marginal, leading to large inequalities. In 2009, more than 80% of Zambias foreign exchange pay and 15. 9% of GDP came from copper mining. (iol. co. a Zambia copper mines More local benefits urged April 2010).In 2006, the contribution of mining to PAYE1 was 54%, to VAT2 was 45% and to employment multiplication was 58%. (Source Zambia Development Authority). But Zambia fails to influence World market prices. (Source www1. america. edu) Fluctuations in copper prices can impact the whole economy. So there is need to develop agriculture sector also as a safety net. But in which direction policy should be made is yet to be decided. The policy recommendations should be such that it should not affect the social and environmental climate of the country.