Stop Large-Scale Land Acquisitions in Sierra Leone

Large-scale land acquisitions by multi-national companies have become commonplace in several regions of Sierra Leone. The report, “Understanding Land Investment Deals in Africa: Sierra Leone”, cites numerous examples of how villages and farmers are being taken advantage of by these large companies. In the report released on June 9, local NGO Green Scenery and international group, the Oakland Institute, urge donors and Government to stop all land negotiations till adequate measures are put in place.

“Land is our heritage,” said Edward Sam, Chair of the Human Rights Commission. “Land is our capital and we should not trade it away for baubles and coins.” Mr. Sam was the keynote speaker and report launcher at Hill Valley Hotel.

Blatant land grabbing is Salone’s “open secret”. “People are aware of what’s going on but refuse to stand up to what these companies call ‘development’ even though it’s detrimental to the people of Sierra Leone,” said Joan Baxter, the report’s primary researcher. She continues, “The Government of Sierra Leone, specifically SLIEPA, are doing everything in their power to attract and protect investors but do nothing to protect the people in the Provinces who rely on small-scale farming to feed their families and communities.”

SLIEPA was established as a project of the International Finance Corporation (IFC) the private sector arm of the World Bank Group. According to the SLIEPA website, “Agricultural labor costs are considerably less than Asia or Latin America. Labor regulation is flexible. Leases on land rand from $5-20 per hectare. There is no charge for water resources. Tax rates are attractive, 0 percent corporate income tax and 0 percent on imported inputs for investors.” Baxter explains, “SLIEPA is telling the world to come and exploit the people, land and resources of this country.”

The report highlights the social, political and economic implications of current land investment trends in Sierra Leone. According to the report, most of the land investment involves commodities to be sold outside Sierra Leone. “These companies are not growing food to feed Sierra Leone,” says Baxter. “They are growing palm oil, sugarcane and other crops for ethanol fuel to maximize their profits.” In early 2011, close to 500,000 ha of farmland had been leased or were under negotiation for lease in Sierra Leone.

Four case studies were examined in the “Understanding Land Investment Deals” report - Addax Bioenergy (Switzerland), Quifel Agribusiness (subsidiary of Quifel Natural Resources, Portugal), Sierra Leone Agriculture (subsidiary CAPARO Renewable Agricultural Developments, UK) and Sepahan Afriquue (Iran). Other companies are involved in large-scale land acquisitions but were not studied in the report.

Several problems are highlighted including the lack of transparency of any land deals going on. Public disclosure of these documents and negotiations is nil. Land leases are negotiated directly with chiefs and landowners who are often not aware of what they’re signing or agreeing to. Foreign investors often employ “agents” to identify available land but the report states these agents take unfair advantage of local traditions and vulnerabilities. Some of these agents are referred to these large companies by SLIEPA.

The Government of Sierra Leone provides a myriad of financial incentives to encourage foreign investment. These include a 10-year tax holiday on agricultural investments in tree crops and rice. Companies won’t pay any tax for ten years or more on the land they occupy. There is no import duty for any of these companies. Sierra Leone allows 100 percent foreign ownership of these companies. And, they allow all profits to be taken out of the country. According to the Minister of Finance and Economic Development, quoted in the report, in his 2011 budget speech, “the existing regimes… and other tax exemptions have tended to severely erode our tax base… and the efficiency of the tax system.”

The regulatory framework for the negotiation of land deals is extremely weak. The guidelines developed by the Ministry of Agriculture, Forestry and Food Security (MAFFS) contain huge loopholes and appear to be non-binding. There also appears to be a great deal of confusion about the availability of land. No land surveys exist and no allowances for local farmers are acknowledged. There is a lack of environmental protection, says the report, and projects are being implemented without compliance with the Environmental Protection Agency Act (2008).

The report also calls into question several ties to the Government of Sierra Leone. The Minister of Justice and Attorney General, Franklyn Kargbo, appointed in December 2010, represented landowners in the Addax land deal and represented Quifel in their land deal in Port Loko District. At the time of the negotiations, Mr. Kargbo was an advisor in the Strategy and Policy Unit in the Office of the President.

Many international policies are questioned as well. The World Bank and the International Finance Corporation (IFC) support the agribusiness investment strategy but their own Performance Standards are often ignored.

Sierra Leone is not alone. The issue of land grabbing is occurring across Africa. Along with the country report from Sierra Leone, other reports are being complied including Mali, Ethiopia, Mozambique, Sudan, Tanzania and Zambia.

The comprehensive report ends with a dire warning if things continue. Recent conflicts are noted in areas such as Lungi Acre (Addax) Loko Massama Chiefdom (Quifel) and Madina (Sepahan Afrique) pitting the people in the community against themselves and against these large agribusinesses. Conflicts and disputes over land issues could escalate… and no one wants to see more violence in Sierra Leone.

Still trying to understand,
S/