Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands - Business - Nairaland
Nairaland Forum / Nairaland / General / Business / Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands (14453 Views)
Harvard Puntin University (temp Room) / Harvard Business Article Praising Dangote's Oil Refinery / Hurry Up! African Aliance Private Placement Is On: (2) (3) (4)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ... (11) (Reply) (Go Down)
| Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by PapaBrowne(m): 3:33am On Jun 13, 2011 |
[size=14pt]US universities in Africa 'land grab'[/size] Institutions including Harvard and Vanderbilt reportedly use hedge funds to buy land in deals that may force farmers out John Vidal and Claire Provost guardian.co.uk, Wednesday 8 June 2011 20.18 BST US universities are reportedly using endowment funds to make deals that may force thousands from their land in Africa Harvard and other major American universities are working through British hedge funds and European financial speculators to buy or lease vast areas of African farmland in deals, some of which may force many thousands of people off their land, according to a new study. Researchers say foreign investors are profiting from "land grabs" that often fail to deliver the promised benefits of jobs and economic development, and can lead to environmental and social problems in the poorest countries in the world. The new report on land acquisitions in seven African countries suggests that Harvard, Vanderbilt and many other US colleges with large endowment funds have invested heavily in African land in the past few years. Much of the money is said to be channelled through London-based Emergent asset management, which runs one of Africa's largest land acquisition funds, run by former JP Morgan and Goldman Sachs currency dealers. Researchers at the California-based Oakland Institute think that Emergent's clients in the US may have invested up to $500m in some of the most fertile land in the expectation of making 25% returns. Emergent said the deals were handled responsibly. "Yes, university endowment funds and pension funds are long-term investors," a spokesman said. "We are investing in African agriculture and setting up businesses and employing people. We are doing it in a responsible way … The amounts are large. They can be hundreds of millions of dollars. This is not landgrabbing. We want to make the land more valuable. Being big makes an impact, economies of scale can be more productive." Chinese and Middle Eastern firms have previously been identified as "grabbing" large tracts of land in developing countries to grow cheap food for home populations, but western funds are behind many of the biggest deals, says the Oakland institute, an advocacy research group. The company that manages Harvard's investment funds declined to comment. "It is Harvard management company policy not to discuss investments or investment strategy and therefore I cannot confirm the report," said a spokesman. Vanderbilt also declined to comment. Oakland said investors overstated the benefits of the deals for the communities involved. "Companies have been able to create complex layers of companies and subsidiaries to avert the gaze of weak regulatory authorities. Analysis of the contracts reveal that many of the deals will provide few jobs and will force many thousands of people off the land," said Anuradha Mittal, Oakland's director. In Tanzania, the memorandum of understanding between the local government and US-based farm development corporation AgriSol Energy, which is working with Iowa University, stipulates that the two main locations – Katumba and Mishamo – for their project are refugee settlements holding as many as 162,000 people that will have to be closed before the $700m project can start. The refugees have been farming this land for 40 years. In Ethiopia, a process of "villagisation" by the government is moving tens of thousands of people from traditional lands into new centres while big land deals are being struck with international companies. The largest land deal in South Sudan, where as much as 9% of the land is said by Norwegian analysts to have been bought in the last few years, was negotiated between a Texas-based firm, Nile Trading and Development and a local co-operative run by absent chiefs. The 49-year lease of 400,000 hectares of central Equatoria for around $25,000 (£15,000) allows the company to exploit all natural resources including oil and timber. The company, headed by former US Ambassador Howard Eugene Douglas, says it intends to apply for UN-backed carbon credits that could provide it with millions of pounds a year in revenues.[/color] In Mozambique, where up to 7m hectares of land is potentially available for investors, western hedge funds are said in the report to be working with South Africans businesses to buy vast tracts of forest and farmland for investors in Europe and the US. The contracts show the government will waive taxes for up to 25 years, but few jobs will be created. "No one should believe that these investors are there to feed starving Africans, create jobs or improve food security," said Obang Metho of Solidarity Movement for New Ethiopia. "These agreements – many of which could be in place for 99 years – do not mean progress for local people and will not lead to food in their stomachs. These deals lead only to dollars in the pockets of corrupt leaders and foreign investors." "The scale of the land deals being struck is shocking", said Mittal. "The conversion of African small farms and forests into a natural-asset-based, high-return investment strategy can drive up food prices and increase the risks of climate change. Research by the World Bank and others suggests that nearly 60m hectares – an area the size of France – has been bought or leased by foreign companies in Africa in the past three years. "Most of these deals are characterised by a lack of transparency, despite the profound implications posed by the consolidation of control over global food markets and agricultural resources by financial firms," says the report. "We have seen cases of speculators taking over agricultural land while small farmers, viewed as squatters, are forcibly removed with no compensation," said Frederic Mousseau, policy director at Oakland, said: "This is creating insecurity in the global food system that could be a much bigger threat to global security than terrorism. More than one billion people around the world are living with hunger. The majority of the world's poor still depend on small farms for their livelihoods, and speculators are taking these away while promising progress that never happens." [url]http://www.guardian.co.uk/world/2011/jun/08/us-universities-africa-land-grab [/url] http://edition.cnn.com/2011/WORLD/africa/06/11/africa.land.report/ To get a complete report on these land deals visit www.oaklandinstitute.org
|
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by PapaBrowne(m): 3:43am On Jun 13, 2011 |
I CRY, I SHOUT, I SCREAM AND I TIRE FOR AFRICA!!! Why all this mumuness?? Cant we farm these lands ourselves?? Can't Africa just wake up and realise that the we hold the aces!! We(individuals) need to wake up and start thinking differently before these folks send us to another round of economic colonialism! Bad governance or not, [b]AFRICANS [/b]have to start thinking. 9% of all Southern Sudan land was purchased for $25,000!! 60 million hectares(About the size of France) of Land have been purchased in the last 3 years alone!! Scary!! 1 Like 1 Share |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by loma(m): 5:22am On Jun 13, 2011 |
Very sad! |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Bishopking: 9:20am On Jun 13, 2011 |
it boils down to iq. 70 or less is what african countries are boasting of. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Bishopking: 9:31am On Jun 13, 2011 |
it boils down to iq. 70 or less is what african countries are boasting of. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by ShangoThor(m): 9:53am On Jun 13, 2011 |
It's a simple strategy really, why export slaves and maintain them in foreign lands when it's cheaper to enslave them on their own continent! 1 Like |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by KnowAll(m): 9:53am On Jun 13, 2011 |
But the US have enough land, they can grow whatever they fancy or are they after the natural resources on those land.  |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by ShangoThor(m): 9:56am On Jun 13, 2011 |
KnowAll: Cheap labour, think of it as 'Slavery - the sequel'. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by PapaBrowne(m): 9:59am On Jun 13, 2011 |
ShangoThor: Exactly!! What I keep wondering is why we Africans are not able to see these opportunities that these westerners keep seeing! For them to suddenly start scooping massive tracts of land just after the economic turmoil points to something. Are Africans I.Q just so low or what exactly is the problem. For me sha, I have decided to join these folks- I have started the process scooping massive tracts of rural land here in Nigeria. I'm done complaining!! |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by cap28: 11:12am On Jun 13, 2011 |
and yet we nigerians continue to delude ourselves into beleiving that we are soo smart - as far as i am concerned africa is now moving into the second phase of economic enslavement, the first phase was when our leaders colluded with the international financial institutions to saddle us with debt - now the europeans are moving in for the kill by buying up all the fertile land for a pittance. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by olaolabiy: 1:27pm On Jun 13, 2011 |
Those who read and pass exams - made up of theories developed by Westerners; and questions set by Westerners, will soon come in here to claim that the Black Man is smart. Smart my foot. We need help, I tell ya. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by martinosi: 1:42pm On Jun 13, 2011 |
PapaBrowne: [b]Thank you for this valuable information! I have no read the article yet but it hold so much weight. Have they bought land in Nigeria or only in those "really easy to con" african countries? |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by martinosi: 1:48pm On Jun 13, 2011 |
PapaBrowne: Bro i agree with you, my eye dey for Naija like Hawk now!!!, My Business Drive/model/motto is to get fabulously wealthy from anything connected to the land and Resources in Nigeria and make my fellow Nigerians that i do business with in Nigeria rich in the Process Legally!!! 1 Like |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by PapaBrowne(m): 2:55pm On Jun 13, 2011 |
martinosi: That is genuis! With proper research and planning, You would make it definitely. That is exactly what I have recently ventured into. You would be amazed at the tremendous opportunities wasting away in Nigeria. These white folks have an eye that most Africans just don't have. Where we see problems, they see opportunities! I'm joining them for real and scooping up lands. Fine the lands in Nigeria are not knock off cheap like these African countries, but even down south you can get an hectare for below 50k!! |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Seun(m): 3:04pm On Jun 13, 2011 |
This is just an alarmist piece of garbage, but it suggests that investing in farmlands could be lucrative. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by feelamong(m): 3:33pm On Jun 13, 2011 |
anoda bubble being blown, very very soon the bubble go burst  |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Nobody: 3:49pm On Jun 13, 2011 |
Seun: This is real my brother. There is a scramble for agricultural lands, especially in africa. And they are not doing it as a favor to Africans. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by morpheus24: 4:07pm On Jun 13, 2011 |
Seun: Thank you my wise founder brother. People would rather concentrate on the negative aspects of information they recieve instead of trying to decipher it. Africa needs FDI. Point blank. We do not have enough industry or activity to generate income that will support mass projects that are necessary for growth within the continent. A comparative advantage we have is our arable land mass that is currently below max productivity. The issue should be: What are the terms of these negotiated contracts and how favorable are they to the local populations? Are these leases or outright buyouts? How are the countries benefitting from this trade off? Are the local land owners compensated properly? What are the long term goals of the countries involved in transfering technology and expertise to local farmers and industry? If we are to reject this exchange, what strategies then are necessary to adopt in growing our agric sector which is paramount in becoming competitive and engaging in global trade? If so called Hedge funds are "grabbing" up acres of land in Africa it's because they have understood that there is a coming "food shortage crisis" as the world population grows rapidly. To "hedge"this risk they are future planning to reap profits where there is opportunity. Productivity will be maxmized via technological know how and expertise and the result will be large enough production for local consumption to sustain the host country and residuals will be exported at a premium to other countries for profit. Again the question becomes how does Africa(via its leaders) position itself to benefit from this? |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by daroz(m): 4:13pm On Jun 13, 2011 |
@Poster I dont need to read all the crap u wrote, all I know is that its ur entire Village that is mumu, not African at large. I wonder why some pple, becos they think they have freedom of speech, will think they are at liberty to say anything they like. What an obnoxious title, knowing fully well that this forum is open to the world. NONSENSE!!!! |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Ibime(m): 4:28pm On Jun 13, 2011 |
It would be a funny situation if one of these countries should experience famine in the future whilst these investors cart away tonnes of food produce from these farms. Perhaps then hunger will encourage the citizens of these countries to "Mugabe" these farms. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by ektbear: 4:34pm On Jun 13, 2011 |
I've listened to a few talks from companies that invest in agric in Africa, and their ROI is usually around 25-30%. Good, but not rockstar (by African standards, at least.) Think about it a bit. . . if agric was so profitable (relative to other opportunities available), then Nigerians and Africans would be doing it in large #s. If you are some pension fund in say the US, 25 or 30% ROI is amazing. But if you are some Nigerian dude who for example must pay 20%+ interest to borrow from a Nigerian bank? Then that ROI is less sexy. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by morpheus24: 4:36pm On Jun 13, 2011 |
ekt_bear: i didn't know regarding ROI. If this is fact then it aint that profitabel short term. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Ibime(m): 5:04pm On Jun 13, 2011 |
ekt_bear: 25 - 30% ROI is a brilliant return for anyone whether Nigerian or Martian. Inflation will lift Nigerian dude's ROI also, and give him an ROI (less inflation) similar to the foreigners. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by adejoro76: 5:16pm On Jun 13, 2011 |
The question is: are they buying up the land or leasing them? If leasing, then there is an expiration date, no? If outright purchase, then it is a sad development. Anyways, as long as they are not buying up my family/town property, it beho(o)ves those selling to consider the long-term impact. There are many intractable lands lying unused in Africa. It may make economic sense to lease those out, instead of choice arable lands. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by ektbear: 5:35pm On Jun 13, 2011 |
Ibime: As I alluded to, I think your typical Nigerian guy with large amounts of capital can find far more lucrative opportunities within Nigeria. That really is what it boils down to. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Kilode1: 5:47pm On Jun 13, 2011 |
ekt_bear: While these companies want to make money, I think the central issue is more of a National Food security thing than just looking for new places to make more big money. I think they are seeking new places to gain control over food and water resources. From what I've read and heard, Several countries are worried about a possible food scarcity in the near future due to massive world population growth and increasing number of "hungry" middle class income earners with extra cash to spend, especially in countries with diminishing access to arable lands in Asia and the Middle east. So, I see this as an opportunity for us to learn from the past and make sure we gain from their speculation and fear. There's nothing wrong with their investments, we should welcome it, But we need to be smart about it. Land ownership and the production of both raw and finished goods must be in our favour, else we repeat 1818 (Scramble for Africa) again, albeit in a more subtle way. We need to welcome these people's money/investments and still find a way to make them dependent consumers and not outright owners. That is where the challenge and hard work would be for us and our leaders. Unfortunately we don't have a coherent land use or land ownership policy in Nigeria. Even our Green revolution/Agric policy is not revolutionary in anyway. It's also not export oriented at all. BTW, When Americans (Hillary Clinton) start warning Africans about Asians and Arabs, especially when their own Hedge funds and Universities are doing the same thing(buying up land resources)? That should tell us we have no friends in this situation. they are simply competing We better start playing both sides to suit our own purposes. Only if we have visionary leaders  |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by ektbear: 5:57pm On Jun 13, 2011 |
^-- Yeah I have no clue about the food security/etc aspects of it. The guys I asked were profit-seeking investors, not companies secretly owned by India/China/etc to provide additional food. And iirc they targeted the food for the local market (at least the rice guy. There was some guy who grew some other high-end crop for export), and leased the land rather than buying it outright. I'm not necessarily super concerned about selling of land. If you are able to sell it for a good price, then why not. But if you are like the: 1) Native Americans, who supposedly sold Manhattan to the white folk for the equivalent of $24 2) The French, who sold off the land from the Louisiana Purchase for $15 million at that time 3) Russians, who sold off Alaska for about $7 million (at that time) then wahala dey So if you don't think you are good at estimating the value of your land (which seems to be the major issue here), then imo do short term leases. |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by redsun(m): 6:42pm On Jun 13, 2011 |
u are not getting d point,oyinbos are dubiously acquiring these lands from foo_lish africans with d intentions of using it to |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by redsun(m): 6:45pm On Jun 13, 2011 |
service and feed thier own population in their home land at d expence of starving and sleeping africans |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by morpheus24: 7:02pm On Jun 13, 2011 |
Kilode?!: My sentiments exactly |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by redsun(m): 7:03pm On Jun 13, 2011 |
this is another form of colonization.Oyinbos are running out of resources and africa,a land blessed with natural resources |
| Re: Africa Is Mumu Inc: Us Universities(Harvard et al) buying up African lands by Kilode1: 7:03pm On Jun 13, 2011 |
ekt_bear: Exactly, That is the point a lot of people are making. Not just short-term leases, but turn them into dependent costumers (abi na consumers). The worry being expressed by some of us despite the fact that we need and desire investment is very genuine and well rooted in recent history. If we have Visionary leaders, fewer people will worry about how this arrangement will pan out. But in an unstructured, poorly regulated system, It is very sensible to worry about these things and ask questions. |
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ... (11) (Reply)
What Do I Need To Start A Microfinance Bank? / 40 Profitable Small Businesses In Nigeria Today / List of Top Management Consulting Companies In Nigeria
(Go Up)
| Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 96 |