China province eyes $300 mln investment in Ugandan farming

Reuters Africa| 27 August 2014

China province eyes $300 mln investment in Ugandan farming

By Elias Biryabarema

KAMPALA Aug 27 (Reuters) - China's Sichuan province is in talks to invest $300 million in cotton,
Medium_original_20100311_curtis_uganda_0043-1
The investment comes in the same month with Sichuan Wande Investment Group announced plans to open up a $400 million economic zone for Chinese industrialists in Uganda
rice and fruit production in Uganda, a senior Ugandan official said on Wednesday.

Most farming in Africa's biggest coffee exporter is at a subsistence level and rain-fed. Big commercial production is hobbled by a lack of capital, expertise and supporting economic infrastructure.

The Ugandan government was helping Sichuan's agricultural department acquire land for a project involving private land owners, the commissioner for crop resources in the Agriculture Ministry, Okasai Opolot, told Reuters.

"They have committed to invest $300 million in five years but immediately what's available is $60 million," he said.

"They're establishing an agricultural production and industrial park which will involve developing the whole value chain of cotton, rice and fruits," he added.

Foreign investment in African agriculture has stoked controversy in the past, with critics saying foreign "land grabs" drive rural populations away from livelihoods and hinder Africa's efforts to alleviate hunger. Investors say deals expand production of unused land and boost efficiency and resources.

The Ugandan project would need about 15,000 acres of land and private Ugandan land owners could choose to lease land to the Chinese investors or enter equity partnerships, Okasai said.
Uganda was once Africa's largest cotton producer but political turmoil in the 1970s saw output drop steeply. Output has started to edge up again with greater political stability.

Cotton, mostly grown in the country's east and northern regions, still suffers from bouts of harsh weather, a lack of investment and government neglect, growers say.

The Washington-based International Cotton Advisory Council (ICAC) said Uganda was forecast
to produce 15,000 metric tonnes of cotton in the July 2014 to June 2015 season, up from 14,000 tonnes produced in the previous season.

As with other areas of Sub-Saharan Africa, China has become a major investor in Uganda. It has mostly channelled funds into roads, hydro power dams, fibre optic cable networks and other infrastructure, usually offering cheap loans.

State-owned China National Offshore Oil Corporation (CNOOC) holds stakes in Uganda's emerging oil industry.

(Reporting by Elias Biryabarema; Editing by Edmund Blair)

--
Wall Street Journal | 27 August 2014

China’s Sichuan to Spend $300m on 17,000 Acre Ugandan Farm

By  NICHOLAS BARIYO

KAMPALA Uganda–China’s Sichuan provincial department of agriculture plans to invest up to $300 million to boost production of several agricultural commodities in Uganda, officials said Wednesday.

Sichuan plans to open up a 17,000-acre farm in the country to grow cotton, rice and fruits, as well as to breed animals, starting next year, the director of crop resources at the Ugandan Agriculture Ministry, Opolot Okasai, said. The Chinese will kick start the venture with a $60 million investment next year, starting with a 750-acre cotton farm in central Uganda, Mr. Okasai said.

The investment is the latest in a series of Chinese-funded projects in Uganda as Chinese investors extend their influence in the continent’s top coffee exporter and fledging oil producer. The development comes in the same month that Sichuan Wande Investment Group announced plans to open up a $400 million economic zone for Chinese industrialists.

“The investors have now embarked on a search for more suitable land,” Mr. Okasai said. “The entire project will be implemented within five years.”

In an attempt to address fears that the government intends to grab land from locals for the project, he added that investors will lease land from private owners at “agreeable terms.”

Last week, Tu Jian Hua, the Sichuan deputy director, along with around a dozen officials concluded a weeklong visit to Uganda where they held talks with various government officials on the projects. Mr. Tu was quoted by Uganda’s privately-owned Daily Monitor newspaper as saying that all the agriculture output from the farm will be processed locally to create more jobs for Ugandans.

Sichuan expects to cultivate “improved” types of cotton, rice and fruits to boost output. The investment comes as the Ugandan production of cotton and rice faces challenges due to antiquated farming methods and unfavorable weather conditions.

Write to Nicholas Bariyo at [email protected].
  • Sign the petition to stop Industria Chiquibul's violence against communities in Guatemala!
  • Who's involved?

    Whos Involved?


  • 19 Mar 2024 - Bogotá y online
    Conferencia internacional: Acaparamiento global de tierras
    13 May 2024 - Washington DC
    World Bank Land Conference 2024
  • Languages



    Special content



    Archives


    Latest posts