Malagasy farmers have backed a move by the country's new president to stop a $6 billion land deal with South Korea's Daewoo Logistics, saying it would have come at the expense of local people's needs for land.
Madagascar has “definitely abandoned” a $6 billion farming agreement with Daewoo Logistics Corp., though may welcome agriculture investment in the future, Minister of Land Reform Hajo Andrianainarivelo said.
A move by Madagascar's army-backed leader to nix a huge South Korean farming deal has exposed the risks of such ventures in Africa, where land remains an emotive issue prone to populist or nationalist opposition.
Deposed President Marc Ravalomanana brought the house of Madagascar down upon himself. But he has been replaced by a young untested leader who, although he has some public support, is full of himself and clearly contemptuous of democratic institutions. The result is that investment in Madagascar, and perhaps across the continent, will be hurt, writes Stephen Hayes
South Korea’s project to transform Madagascar into its breadbasket, branded by some as neo-colonial, came to an abrupt end on Wednesday when the Indian Ocean island’s new president said he would shelve the plan.
Daewoo Logistics, the South Korean company, said on Wednesday that it was confident that Madagascar’s new government would support a plan to lease a huge tract of farmland on the island to grow food crops to send back to Seoul.