On Djibouti and Malawi Agriculture

A few days ago Djibouti announced it would be investing in Malawi agriculture Read more. To understand this one has to understand the food needs of the Gulf Countries. I actually heard someone suggest that Djibouti might simply be a front for   Big Gulf Money.

Gulf countries are seeking investment opportunities in African countries to ensure their food security Read more and this.. Even more dramatically only last week Saudi Arabia announced that it would be investing US$800 million in agriculture to ensure stable food supplies

 The Gulf-Africa Strategy Forum held in the South African city of Cape Town from Feb 24 to 25. argued that Countries in the Gulf and in Africa can form mutually beneficial partnerships, with Africa supplying fertile arable land and the Gulf investing in technology, fertiliser and other agricultural inputs. Both FAO and  IFAD have  endorsed this as a win-win” situation.

 Only last week Tanzania papers reported   that Saudi Arabian investors want to lease 500,000 hectares of farmland in Tanzania  to grow rice and wheat.

According to Reuters President Kikwete is reported to have told the Saudis that Tanzania could lease them plots that covered up to 10,000 hectares each for 99 years.

"Tanzania is ready to do business with you ... There is 100 million acres (40.5 million hectares) of good arable land," Reuters quoted Mr Kikwete as telling the Saudi businessmen

 There are a number of things to consider in addressing  the Djibouti case. First, it is not the first time in Malawi. We already have Illovo in sugar and  Lonrho   will be entering the horticultural sector.  We also have  CRU involved in Piri Piri farming.

The second is the effect of this on overall agricultural development. Earlier attempts to turn Sudan into a breadbasket of the Gulf Countries failed and we ought to look at what went wrong.

The most critical issue for Malawi is that this must not lead to loss of land by peasants. Some have warned about the “Second Scramble for Africa”  and "land grabbing"so it is important that we do not create a new land issue such as the unresolved one of tea estates.  The government also ought to make sure that small producers can benefit from these investments as outgrowers, labourers etc.