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Korean Investors To Lift Agric In Ekiti With U.s.$400 Million - Business (4) - Nairaland

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Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by 2muchlogic(m): 4:16pm On Jun 11, 2011
jmaine:

Moving in circles is not my thing, am not configured to endure endless and futile arguments . . . follow up my flow line and you will appreciate the fact that in weighing a problem you not only look at the pros and cons but you also look at where can be improved . .But people over played the negative aspects and all i did was bring appreciate all side of the divide and possibly give a reason as to why they seemed so  . . And please in my posts watch out for the answers you require, cos they are always embedded in my replies .   . .You need to be open minded to see them clearly . . .

I asked a question below and you dodged it , why?

GLO is a solely Nigerian owned company doing well in one of the most competitive industry in Nigeria. . IBB or no IBB, GLO is doing well, and i believe  Mike Adenuga is the owner unless you substantially convince us that IBB owns Glo . .  which i doubt . .  Abacha, highly favoured Dangote, does that make Dangote a front for Abacha holdings ?

GLO signifies the Nigerian content absolutely in a field that was dominated by foreign companies and am content with the emboldened part since they contribute a lot to the GDP of my dear country Nigeria . . What more should i ask . .



You have not answered any of my questions constructively, now you attempt to bore the living daylights out of everyone by defending GLO and asking if I believe there are any good people left in government - what a joke!  cry cry cry cry

2muchlogic:

Well I think you are contradicting yourself, on the one hand you accuse people of being pessimistic then you claim:

When will that moment be? There has never been good over-sight due to the absence of strong institutions therefore the skepticism is justified. GLO Babangidas stolen loot invested is a good NIGERIAN company, a good example of buying and implementing technology rather than inventing it.  [size=17pt]However, contrary to its name it has NOT gone global I wonder why? maybe its due to the presence of stringent telecommunication regulations[/size].  wink

Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by OmoTier1(m): 4:19pm On Jun 11, 2011
Very strange people can not see the handwriting on the wall! This is not about foriegn investment rather it is simply about South-Korea food security! Forget the claim that after three years they handover the farm management to Ekiti government. Do you know how long it will take them to pay back the $400m? or do you think these guys have $400m sitting somewhere they want to throw about?

oh goodness me! If these Koreans are serious, let them first sell thier produce in Nigeria, West Africa or even East Africa where there is already starvation-Why buy all the produce to South-Korea when there is a market here in Africa! That tells you thier wicked motives.

This is not about pessimism, rather the share greed of the developed world is a real threat to the developing world and they do not mind spilling the blood of many as we have witness in the last two decades. Afterall, it is said, to them, thier belly is thier god!

Was it not for such purposes as largebscale commercial farming we have the Africa Agricultural Development Bank, so that we can gain access to money to engage in large scale farming?

Those in the Niger Delta are trying to kick out Shell, Chevron etc, yet we are opening other parts for indo-Asians to come in!
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by 2muchlogic(m): 4:27pm On Jun 11, 2011
^^^^^^^^^^^^^

Exactly! This discussion has gone on for too long! if people could give straight answers then we could all learn a little.  the issue is beyond Ekiti, its about Nigeria and Africa in general.  Some, gullible ones on this thread keep waffling on about the Koreans will hand the project back to Ekiti after 3 years, hand what back? worn out machinery or their Korean brains? I wonder where Ekiti will have to get the spare parts from? let me guess  grin wink cheesy smiley But if we question anything, we are pessimistic.  If africans cannot grow their own food and use their education in biotechnology to become more proficient then Africa's problems are deeper than the Atlantic ocean!!!
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Kobojunkie: 4:27pm On Jun 11, 2011
You people and your conspiracies. For the umpteenth time, YOUR OWN food security has been their business so long now. In the last 20 years, you have depended on them to feed and cloth you. Now one businessman wants to invest in your land, and BOOM . .  . the fearmongers among you pretend the Koreans are coming to get you  . . . . undecided undecided undecided
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by jmaine: 4:32pm On Jun 11, 2011
2muchlogic:

You have not answered any of my questions constructively, now you attempt to bore the living daylights out of everyone by defending GLO and asking if I believe there are any good people left in government - what a joke!  cry cry cry cry




Guess i was mistaken i could answer you and engage you in a tangible debate (not futile argument) . .you pass for a fellow who doesn't know how to read replies for his questions . . Did you see this  below . . am convinced you just graze through posts without seeking for your answers and when you see one you force yourself to deny it . . I did post a lot of things, why pick out a few which obviously you have no strong footing to stand and dwell on, even retorting am defending GLO when it's operations and contributions are glaring, what a joke  embarassed embarassed. .could it be the nairaland penchant to always win at all cost 

jmaine:



Glo plans to go global but that wont happen at an instant, it takes time gradually and  they are already operating in the Republic of Benin, Ghana and Ivory Coast . .  . .So is that not regional expansion before they go continental .  . . Remove that pessimism of yours bruv and be objective please


Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 4:36pm On Jun 11, 2011
ungrateful lot we are korean business men go to bed at nite and wake up every day thinking how to feed us and what do they get in return? abuse.
africans!!!
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by member67023: 4:41pm On Jun 11, 2011
The Korean business executive disclosed that SYNCTOP would buy all agricultural produce generated from the project.

Why don't they build processing facilities to process the agricultural produce in Nigeria.
Instead, they want to export to factories in their country and our people will import the finished product back to nigeria at 10 times the original price.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by member67023: 4:45pm On Jun 11, 2011
aribisala0:

ungrateful lot we are korean business men go to bed at nite and wake up every day thinking how to feed us and what do they get in return? abuse.
africans!!!
They are thinking of how to feed themselves. They are "business men" not NGO or Charity Organisation.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 4:49pm On Jun 11, 2011
they love us more than themselves.that is koreans for you
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 4:50pm On Jun 11, 2011
aribisala0:

they love us more than themselves.that is koreans for you
wtf? U. Must be from Korea or something
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by 2muchlogic(m): 4:51pm On Jun 11, 2011
jmaine:

Guess i was mistaken i could answer you and engage you in a tangible debate (not argument) .  


A debate is a formal argument, so don't waste time trying to make a demarcation.  

jmaine:

you pass for a fellow who doesn't know how to read replies for his questions . . Did you see this  below . . am convinced you just graze through posts without seeking for your answers and when you see one you force yourself to deny it . . I did post a lot of things, why pick out a few which obviously you have no strong footing to stand and dwell on, even retorting am defending GLO when it's operations and contributions are glaring, what a joke  embarassed embarassed. .could it be the nairaland penchant to always win at all cost 

Don't by a s.illy billy, You broke the rules by ignoring my questions and asking irrelevant ones.  If you read my replies instead of your own, you would realize that I believe glo is a good company, well run and we should all be proud of it.  I see it advertised on CNN regularly and they always promote Nigerian life and artists.  But to operate in a Ivory coast (a war-zone), Ghana (dominated by Vodafone) and Republic of Benin (lol!) is laughable.  

[size=18pt]You simply lack the depth to respond constructively to simple questions – what a simpleton (laughing in Korean).[/size]
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Kobojunkie: 4:52pm On Jun 11, 2011
nakedwire:

Why don't they build processing facilities to process the agricultural produce in Nigeria.
Instead, they want to export to factories in their country and our people will import the finished product back to nigeria at 10 times the original price.


Why aren't you building the processing facilities in Nigeria if you are really that concerned??  undecided undecided undecided undecided   Must this investor do it ALL now for you?

This is another issue I have with the way many of us think. We expect everyone else to do it all for us. What stops one of our local businesses, governments or states from setting up a processing plant since this is needed in the country?
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by jmaine: 4:54pm On Jun 11, 2011
nakedwire:

Why don't they build processing facilities to process the agricultural produce in Nigeria.
Instead, they want to export to factories in their country and our people will import the finished product back to nigeria at 10 times the original price.


I like your constructive view and i appreciate your fears especially when you consider happenings at the oil and gas sector . . . What if they build those those facilities and yet still engage in the cultivation process . .wont that be great  as well . .  $400 million dollars cant be budgeted for the cultivation process alone, it should also provide for storage and processing facilities cos they are all essential requisites for an effective agricultural success . . .off course their corporate social responsibility ( CSR)  will also go a long way to further improve the socioeconomic status of state . .this is where we got it all wrong when we began exploiting crude oil . .we exploited the resources unsustainably without giving something back to the host communities . .the woes of the Niger Delta crisis
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by 2muchlogic(m): 5:03pm On Jun 11, 2011
aribisala0:

they love us more than themselves.that is koreans for you

And the whole world know what South Korean love is like just ask their STARVING North Korean brothers and sisters  grin grin grin grin grin grin

nakedwire:

Why don't they build processing facilities to process the agricultural produce in Nigeria.
Instead, they want to export to factories in their country and our people will import the finished product back to nigeria at 10 times the original price.


thats right, just like tinned tomatoes and noodles grin grin grin grin
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by OAM4J: 5:21pm On Jun 11, 2011
fyneguy:

He added that the investors would hand over the project to the Ekiti State Government after three years of managing it, explaining further that the scheme is also expected to provide free construction materials as well as tools for rural farmers.

Is it me or some people did not read this in the article?

For your information, not all agri-biz investors are interested in land ownership. From what I could infer from the article, the investor is more interested in the farm produce. They have offered the government what we call guaranteed purchase- I buy anything you produce- this may be 100% or less over a definite period of time, which may be extended with right of first refusal.

The company is bringing money, managerial and technical expertise which will be transferred to the employees within 3 years of operation.

I don't see anything sinister in this offer. If anything, the company could have cleverly structured their offer to Ekiti government, with little or nothing
going to Ekiti.


Gbam! +1
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 5:26pm On Jun 11, 2011
we heard this before someone remind me where
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 5:30pm On Jun 11, 2011
OAM4J:


Gbam! +1

They will sink $400 M into a project and hand it over to the state government in three years? We all know this will not happen unless the company is engaged in charity.

Some of the farmers at shonga are just starting to break even after all these years and our Korean friends will be off in three years!
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 5:38pm On Jun 11, 2011
shonga break even?for where?
i heard they defaulted on the loan guaranteed by kwara state who are now paying
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 5:40pm On Jun 11, 2011
our people go believe any thing e be like the korea people wear red dress ,red cap and white bia bia
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 5:41pm On Jun 11, 2011
aribisala0:

shonga break even?for where?
i heard they defaulted on the loan guaranteed by kwara state who are now paying

I guess the Koreans will not even wait long enough to default on anything. Just dump the money for the good people of Ekiti and leave before the second harvest!
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 5:41pm On Jun 11, 2011
our people go believe any thing e be like the korea people wear red dress ,red cap and white bia bia
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 5:49pm On Jun 11, 2011
Reeks of scam.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 5:51pm On Jun 11, 2011
J12:

Reeks of scam.

Reeks of stupidity.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by aribisala0(m): 5:53pm On Jun 11, 2011
400 million is a lot of money. probably inflated to get attention. we think nigerians are the only ones that can lie.

1. from experience half or more of than money will never enter the nigerian economy but will go to paying korean salaries,legal consutancy and other expenses in korea.

2. where is the money coming from?how much will be borrowed,on what terms and does the government carry any risk

it is impossible to recover such an investment in  years in most businesses least of all agric.

but it is ekiti maybe they will be planting cannabis grin
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 5:56pm On Jun 11, 2011
A company that was established in 2006, has no website and track record, but wants to invest 400 million dollars in agriculture in a small poor ekiti even evident they wont recoup half of that amount in profit in the next four years. This is 419
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by fyneguy: 6:07pm On Jun 11, 2011
Aigbofa:

They will sink $400 M into a project and hand it over to the state government in three years? We all know this will not happen unless the company is engaged in charity.

Some of the farmers at shonga are just starting to break even after all these years and our Korean friends will be off in three years!

What makes you think they will not break even? Do you know their business model? Do you have the details of the kind of potfolio they intend to adopt to
yield huge profit for them?

All Business models are not as simple as taking corns to the market to sell, my brother.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 6:12pm On Jun 11, 2011
fyneguy:

What makes you think they will not break even? Do you know their business model? Do you have the details of the kind of potfolio they intend to adopt to
yield huge profit for them?

All Business models are not as simple as taking corns to the market to sell, my brother.

I've just mentioned Shonga. What you should do is give some case studies or at least one example where the investor broke even in three years and hand over the operation to another party.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by OAM4J: 6:18pm On Jun 11, 2011
Aigbofa:

They will sink $400 M into a project and hand it over to the state government in three years? We all know this will not happen unless the company is engaged in charity.

Some of the farmers at shonga are just starting to break even after all these years and our Korean friends will be off in three years!

I think you have a valid serious point. But I still hope this can be managed if the Govt study the proposal very well and ensures it guarantees the ownership of the land remains with the people of Ekiti.

Except you think that is impossible.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Katsumoto: 6:28pm On Jun 11, 2011
This is a land grab and this is the way it works

The foreign companies seek to get many deals knowing fully well that some deals may fall through due to local opposition. They pay pennies for arable and fertile land and profit so much that they are able to throw in a few benefits. It may be true that the Ekiti people may be able to get their land back if there are no visible benefits but what must be highlighted here is the fact that these Chinese and South Korean companies are paying pennies for land, promising to spend on technology, jobs, etc but not delivering. If Europeans are able to identify that these are land grabs, why are Africans so gullible to believe otherwise?

They spend a little, grab what they can until they are kicked out and then look for the next deal.


See article below from the economist
Some projects’ operators have done better in building new schools, clinics and other “social infrastructure”. Madagascar may be a surprising example as it witnessed what is perhaps the most notorious land grab of all: a South Korean company was offered half the country’s arable land—a proposal that fuelled protests which eventually toppled the government who approved the deal. Two years later Perrine Burnod of CIRAD, a French research organisation, found that the number of land deals on the island had fallen by two-thirds. And those that remained had begun to look more like aid projects, with investors committing themselves to building schools and clinics. Local mayors were welcoming them in to help finance projects no longer supported by the cash-strapped central government.

Yet this is atypical. Most land deals contribute little or nothing to the public purse. Because markets for land are so ill-developed in Africa and governments so weak, rents are piffling: $2 per hectare per year in Ethiopia; $5 in Liberia. Tax and rent holidays are common. Indeed, it is not unusual for foreign investors to pay less tax than local smallholders. And upfront compensation to local farmers for use of their land is derisory: often just a few months of income for agreeing to a 100-year lease.

“The risks associated with such investments are immense,” concludes the World Bank. “In many cases public institutions were unable to cope with the surge in demand…Land acquisitions often deprived local people, in particular the vulnerable, of their rights…Consultations, if conducted at all, were superficial…and environmental and social safeguards were widely neglected.”

So why are land deals popular? That is surprisingly easy to answer: strong demand and willing suppliers. The big investors tend to be capital-exporting countries with large worries about feeding their own people. Their confidence in world markets has been shaken by two food-price spikes in four years. So they have sought to guarantee food supplies by buying farmland abroad. China is by far the largest investor, buying or leasing twice as much as anyone else.

Local elites have also played a vital role in spreading land deals. In a Tanzanian project described by Martina Locher of the University of Zurich, “local people who refer to customary law have a very low level of knowledge [and cannot] defend their land rights.” [/b]In contrast, she writes, “state law is mainly represented by district officials, who…enjoy a high level of respect by local people.”

[b]Then there is corruption. Many of the west African “land grabbers” described by Ms Hilhorst are local politicians, civil servants and other urban elites who bribe local chiefs with gifts of motorbikes. Madeleine Fairbairn of the University of Wisconsin, Madison, argues that in Mozambique, an informal division of the spoils has emerged. Local bigwigs use their influence to get “facilitation fees”, while national leaders manipulate the law and promote (or obstruct) projects to their own and their supporters’ advantage.


Many development projects work this way. What makes land grabs unusual is their combination of high levels of corruption with low levels of benefit. Ruth Meinzen-manliness, one of the authors of the IFPRI study, says that in 2009 the balance of costs and benefits was genuinely unclear. Now, she argues, the burden of evidence has shifted and it is up to the proponents of land deals to show that they work. At the moment, they have precious few examples to point to.

http://www.economist.com/node/18648855
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by Nobody: 6:30pm On Jun 11, 2011
OAM4J:

I think you have a valid serious point. But I still hope this can be managed if the Govt study the proposal very well and ensures it guarantees the ownership of the land remains with the people of Ekiti.

Except you think that is impossible.

If they can do what you've just said and ensure a certain percentage of what is produced is either sold or processed in Nigeria, that is fine with me.
But, no matter how much money they are willing to invest, I don't think arable lands in Nigeria should be cultivated to feed Koreans or anybody when too many of our own people are still hungry.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by EzeUche1(m): 6:39pm On Jun 11, 2011
Katsumoto and I are on the same side? This is amazing! shocked

I can only remember one other time when we speaking with the same voice.
Re: Korean Investors To Lift Agric In Ekiti With U.s.$400 Million by OAM4J: 6:42pm On Jun 11, 2011
Katsumoto:

This is a land grab and this is the way it works

The foreign companies seek to get many deals knowing fully well that some deals may fall through due to local opposition. They pay pennies for arable and fertile land and profit so much that they are able to throw in a few benefits. It may be true that the Ekiti people may be able to get their land back if there are no visible benefits but what must be highlighted here is the fact that these Chinese and South Korean companies are paying pennies for land, promising to spend on technology, jobs, etc but not delivering. If Europeans are able to identify that these are land grabs, why are Africans so gullible to believe otherwise?

They spend a little, grab what they can until they are kicked out and then look for the next deal.


See article below from the economist
Some projects’ operators have done better in building new schools, clinics and other “social infrastructure”. Madagascar may be a surprising example as it witnessed what is perhaps the most notorious land grab of all: a South Korean company was offered half the country’s arable land—a proposal that fuelled protests which eventually toppled the government who approved the deal. Two years later Perrine Burnod of CIRAD, a French research organisation, found that the number of land deals on the island had fallen by two-thirds. And those that remained had begun to look more like aid projects, with investors committing themselves to building schools and clinics. Local mayors were welcoming them in to help finance projects no longer supported by the cash-strapped central government.

Yet this is atypical. Most land deals contribute little or nothing to the public purse. Because markets for land are so ill-developed in Africa and governments so weak, rents are piffling: $2 per hectare per year in Ethiopia; $5 in Liberia. Tax and rent holidays are common. Indeed, it is not unusual for foreign investors to pay less tax than local smallholders. And upfront compensation to local farmers for use of their land is derisory: often just a few months of income for agreeing to a 100-year lease.

“The risks associated with such investments are immense,” concludes the World Bank. “In many cases public institutions were unable to cope with the surge in demand…Land acquisitions often deprived local people, in particular the vulnerable, of their rights…Consultations, if conducted at all, were superficial…and environmental and social safeguards were widely neglected.”

So why are land deals popular? That is surprisingly easy to answer: strong demand and willing suppliers. The big investors tend to be capital-exporting countries with large worries about feeding their own people. Their confidence in world markets has been shaken by two food-price spikes in four years. So they have sought to guarantee food supplies by buying farmland abroad. China is by far the largest investor, buying or leasing twice as much as anyone else.

Local elites have also played a vital role in spreading land deals. In a Tanzanian project described by Martina Locher of the University of Zurich, “local people who refer to customary law have a very low level of knowledge [and cannot] defend their land rights.” [/b]In contrast, she writes, “state law is mainly represented by district officials, who…enjoy a high level of respect by local people.”

[b]Then there is corruption. Many of the west African “land grabbers” described by Ms Hilhorst are local politicians, civil servants and other urban elites who bribe local chiefs with gifts of motorbikes. Madeleine Fairbairn of the University of Wisconsin, Madison, argues that in Mozambique, an informal division of the spoils has emerged. Local bigwigs use their influence to get “facilitation fees”, while national leaders manipulate the law and promote (or obstruct) projects to their own and their supporters’ advantage.


Many development projects work this way. What makes land grabs unusual is their combination of high levels of corruption with low levels of benefit. Ruth Meinzen-manliness, one of the authors of the IFPRI study, says that in 2009 the balance of costs and benefits was genuinely unclear. Now, she argues, the burden of evidence has shifted and it is up to the proponents of land deals to show that they work. At the moment, they have precious few examples to point to.

http://www.economist.com/node/18648855


Whao! Interesting read. Every one should read it.

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