Hedge funds 'grabbing land' in Africa

[^_^ 5,021]

In a report, the Oakland Institute said hedge funds and other foreign firms had acquired large swathes of African land, often without proper contracts.

It said the acquisitions had displaced millions of small farmers.

Foreign firms farm the land to consolidate their hold over global food markets, the report said.

...

The Oakland Institute said it released its findings after studying land deals in Ethiopia, Tanzania, South Sudan, Sierra Leone, Mali and Mozambique.

It said hedge funds and other speculators had, in 2009 alone, bought or leased nearly 60m hectares of land in Africa - an area the size of France.

"The same financial firms that drove us into a global recession by inflating the real estate bubble through risky financial manoeuvres are now doing the same with the world's food supply," the report said.

...

"The research exposed investors who said it is easy to make a deal - that they could usually get what they wanted in exchange for giving a poor tribal chief a bottle of Johnnie Walker [whisky]," said Anuradha Mittal, executive director of the Oakland Institute.

...

The report said the contracts also gave investors a range of incentives, from unlimited water rights to tax waivers.

...

One company, EmVest Asset Management, strongly denied that it was involved in exploitative or illegal practices.

"There are no shady deals. We acquire all land in terms of legal tender," EmVest's Africa director Anthony Poorter told the BBC.

He said that in Mozambique the company's employees earned salaries 40% higher than the minimum wage.

The company was also involved in development projects such as the supply of clean water to rural communities.

"They are extremely happy with us," Mr Poorter said.

http://www.bbc.co.uk/news/world-africa-13688683

[Obama 2012 1,714]

I love it when the main stream media catches up 5 years later...

Africa is a huge hotspot right now on many fronts.

There are quite a few in the intelligence community that feel the next big war will be with Africa over resources.

AFRICOM isn't what its made out to be at all on their little precious website. Its there to try and keep some control and the forces we have there are being grown slowly but surely to keep an eye on China who also wants the resource rich continent for themselves.

What better continent to steal resources from than one who cannot right back and who has been in turmoil since we can remember.

[mawilson 2,133]

It said the acquisitions had displaced millions of small farmers.

If they didn't want to be displaced, why did they sell the land?

[Obama 2012 1,714]

If they didn't want to be displaced, why did they sell the land?

a lot of times they don't necessarily 'buy' the land.

They end up giving people 'loans' that they know they have no chance in hell of paying and use their land as collateral. A lot of the people don't understand what they are doing or what they are signing.

This happens a lot in Africa and even in a few areas in the middle east.

It's quite sad really.

Things that would get you in deep ####### here, but you can get by with overseas.

[mawilson 2,133]

a lot of times they don't necessarily 'buy' the land.

They end up giving people 'loans' that they know they have no chance in hell of paying and use their land as collateral. A lot of the people don't understand what they are doing or what they are signing.

This happens a lot in Africa and even in a few areas in the middle east.

It's quite sad really.

Things that would get you in deep ####### here, but you can get by with overseas.

Ah - I see.

[^_^ 5,021]

a lot of times they don't necessarily 'buy' the land.

They end up giving people 'loans' that they know they have no chance in hell of paying and use their land as collateral. A lot of the people don't understand what they are doing or what they are signing.

This happens a lot in Africa and even in a few areas in the middle east.

It's quite sad really.

Things that would get you in deep ####### here, but you can get by with overseas.

Happens in India all the time. Give a poor farmer enough cash to host modest (by city standards) weddings for his three daughters and he will sign anything because you are like God to him.