The Citizen Newspaper (Dar Es Salaam) | 2009-04-17
By The Citizen Reporters and Agencies
Saudi Arabian investors want to lease 500,000 hectares of farmland in Tanzania to grow rice and wheat.
The Saudis made the request during President Jakaya Kikwete's visit to the Kingdom that ended yesterday. Senior officials from the Saudi capital's chamber of commerce came up with the request on the sidelines of a meeting with the Head of State.
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.
The Citizen yesterday spoke to several prominent individuals, who welcomed the development but called for a systematic approach, saying the country's interests should come first.
Senior economist Ibrahim Lipumba said promoting agriculture was important, but added that such investments required concrete policy direction. Mr Lipumba is also chairman of the opposition Civic United Front.
The president of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Mr Aloys Mwamanga, called it "good business", provided collateral benefits for the country were taken into account.
Tanzania Investment Centre (TIC) executive director Emmanuel ole Naiko said such an investment would create many jobs for locals, adding that he expected the Head of State to refer the Saudi investors to TIC.
"We already have policies on contract farming and outgrowing. We have the Land Act of 1999. All these will be adhered to. It's a fact that we have abundant land and there are already institutions renting land to local investors to farm for a specified period of time," Mr ole Naiko noted in a telephone interview from abroad.
Reuters reported yesterday that Saudi businessmen and officials would visit Tanzania in the next few weeks to follow up the matter. The Saudis are interested in leasing the equivalent of about 0.5 per cent of Tanzania's land surface because of the country's geographic proximity, political stability and availability of water resources and farmland.
"He (President Kikwete) told us that Tanzanian authorities can lease us plots each of which covers up to 10,000 hectares for a 99-year period," Mr Samir Ali Kabbani, head of the chamber's agriculture committee, told Reuters.
"They can lease the land from the Government," Mr January Makamba, an aide to President Kikwete, also told Reuters.
The Saudis are not alone in this since in the face of food shortages and with demand for biofuels growing, an increasing number of wealthy nations are buying up land in developing countries, particularly in Africa, to ensure a steady supply of crops.
High-ranking officials from many of these nations have been on the road since March 2008 in a diplomatic treasure hunt for fertile farmland in places like Uganda, Brazil, Cambodia, Sudan and Pakistan.
The idea, which has been called a "new scramble for Africa", is not without its critics, who question why Africa should lose valuable farmland when it is chronically short of its own food.
Kenya, Sudan, Ethiopia and now Madagascar have all recently offered vast tracts of farmland for lease, hoping to cash in on a growing trend whereby developing countries from Ukraine to Cambodia offer fertile land to the highest bidder.
Qatar plans to lease 40,000 hectares along Kenya's coast to grow fruit and vegetables for its own citizens in return for building a ?2.4 billion (Sh3 trillion) port close to the Indian Ocean tourist island of Lamu. The plan has, however, met with stiff opposition from activists.
Prof Lipumba said there was nothing wrong with leasing land to foreigners in a country where less than 10 per cent of arable land is under cultivation, but added that such investments should come through TIC, and not private requests to the President. He said he expected the Saudis to create jobs for locals and bring into the country modern farming methods.
"The issue of promoting agriculture is primary. What we currently need is a transparent policy on foreign direct investment in the sector. The policy should lay down conditions that protect national interests," Prof Lipumba added.
Mr ole Naiko said the Saudis had already shown interest in farming in Tanzania, but the latest development could lead to the biggest land-leasing agreement with foreign investors. He said such a project would be beneficial, but cautioned that the sensitivity of land matters in the country needed to be keenly considered.
"A contingent of large-scale farmers from Saudi Arabia visited us about two months ago, and made a request to lease land, but we told them to wait for results of the feasibility study of the project. We are still trying to find out whether there are people willing to lease out land or not," he noted.
By The Citizen Reporters and Agencies
Saudi Arabian investors want to lease 500,000 hectares of farmland in Tanzania to grow rice and wheat.
The Saudis made the request during President Jakaya Kikwete's visit to the Kingdom that ended yesterday. Senior officials from the Saudi capital's chamber of commerce came up with the request on the sidelines of a meeting with the Head of State.
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.
The Citizen yesterday spoke to several prominent individuals, who welcomed the development but called for a systematic approach, saying the country's interests should come first.
Senior economist Ibrahim Lipumba said promoting agriculture was important, but added that such investments required concrete policy direction. Mr Lipumba is also chairman of the opposition Civic United Front.
The president of the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Mr Aloys Mwamanga, called it "good business", provided collateral benefits for the country were taken into account.
Tanzania Investment Centre (TIC) executive director Emmanuel ole Naiko said such an investment would create many jobs for locals, adding that he expected the Head of State to refer the Saudi investors to TIC.
"We already have policies on contract farming and outgrowing. We have the Land Act of 1999. All these will be adhered to. It's a fact that we have abundant land and there are already institutions renting land to local investors to farm for a specified period of time," Mr ole Naiko noted in a telephone interview from abroad.
Reuters reported yesterday that Saudi businessmen and officials would visit Tanzania in the next few weeks to follow up the matter. The Saudis are interested in leasing the equivalent of about 0.5 per cent of Tanzania's land surface because of the country's geographic proximity, political stability and availability of water resources and farmland.
"He (President Kikwete) told us that Tanzanian authorities can lease us plots each of which covers up to 10,000 hectares for a 99-year period," Mr Samir Ali Kabbani, head of the chamber's agriculture committee, told Reuters.
"They can lease the land from the Government," Mr January Makamba, an aide to President Kikwete, also told Reuters.
The Saudis are not alone in this since in the face of food shortages and with demand for biofuels growing, an increasing number of wealthy nations are buying up land in developing countries, particularly in Africa, to ensure a steady supply of crops.
High-ranking officials from many of these nations have been on the road since March 2008 in a diplomatic treasure hunt for fertile farmland in places like Uganda, Brazil, Cambodia, Sudan and Pakistan.
The idea, which has been called a "new scramble for Africa", is not without its critics, who question why Africa should lose valuable farmland when it is chronically short of its own food.
Kenya, Sudan, Ethiopia and now Madagascar have all recently offered vast tracts of farmland for lease, hoping to cash in on a growing trend whereby developing countries from Ukraine to Cambodia offer fertile land to the highest bidder.
Qatar plans to lease 40,000 hectares along Kenya's coast to grow fruit and vegetables for its own citizens in return for building a ?2.4 billion (Sh3 trillion) port close to the Indian Ocean tourist island of Lamu. The plan has, however, met with stiff opposition from activists.
Prof Lipumba said there was nothing wrong with leasing land to foreigners in a country where less than 10 per cent of arable land is under cultivation, but added that such investments should come through TIC, and not private requests to the President. He said he expected the Saudis to create jobs for locals and bring into the country modern farming methods.
"The issue of promoting agriculture is primary. What we currently need is a transparent policy on foreign direct investment in the sector. The policy should lay down conditions that protect national interests," Prof Lipumba added.
Mr ole Naiko said the Saudis had already shown interest in farming in Tanzania, but the latest development could lead to the biggest land-leasing agreement with foreign investors. He said such a project would be beneficial, but cautioned that the sensitivity of land matters in the country needed to be keenly considered.
"A contingent of large-scale farmers from Saudi Arabia visited us about two months ago, and made a request to lease land, but we told them to wait for results of the feasibility study of the project. We are still trying to find out whether there are people willing to lease out land or not," he noted.
