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Understanding Land Investment Deals in Africa

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Understanding Land Investment Deals in Africa Understanding Land investment deaLs in africa Country report: ethiopia Understanding Land investment deaLs in africa Country report: ethiopia acknowLedgements This report was researched and written by Felix Horne with support from the Project Director, Frederic Mousseau. Obang Metho of the Solidarity Movement for a New Ethiopia (SMNE), Anuradha Mittal, and Shepard Daniel of the Oakland Institute provided research and editorial assistance. The Oakland Institute is grateful for the valuable support of its many individual and foundation donors who make our work possible. Thank you. A special appreciation to all those Ethiopians who were courageous enough to share their stories despite the obvious risks to their own safety and security. Their names have not appeared in this report to ensure their safety. In particular, a big thank you to Mr. Okok Ojulu, who provided much assistance and support during the life of this project. This report is dedicated to all those individuals and communities who are struggling to ensure their right to dignified livelihoods and for the protection of natural resources. The views and conclusions expressed in this publication, however, are those of the Oakland Institute alone and do not reflect opinions of the individuals and organizations that have sponsored and supported the work. Report Design: amymade graphic design, [email protected], amymade.com Editors: Frederic Mousseau and Granate Sosnoff Production: Southpaw, southpaw.org Photograph Credits: Felix Horne Cover photo: Clearing the land at Karuturi’s farm - Gambella Publisher: The Oakland Institute is a policy think tank dedicated to advancing public participation and fair debate on critical social, economic, and environmental issues. The SMNE is a non-political and non-violent social justice movement of diverse Ethiopians, that seeks to unite the many Ethiopian ethnic groups into a solidarity movement that stands together to call the current Ethiopian government to account for myriad allegations of human rights violations. Copyright © 2011 by The Oakland Institute The text may be used free of charge for the purposes of advocacy, campaigning, education, and research, provided that the source is acknowledged in full. The copyright holder requests that all such uses be registered with them for impact assessment purposes. For copying in any other circumstances, reuse in other publications, or translation or adaptation, permission must be secured. Please email [email protected]. The Oakland Institute The Solidarity Movement for a New Ethiopia PO Box 18978 PO Box 857 Oakland, CA 94619, USA Stillwater, MN 55082, USA [email protected] [email protected] www.oaklandinstitute.org www.solidaritymovement.org aboUt this report This report is part of the Oakland Institute’s (OI) seven-country case study project to document and examine land investment deals in Africa (Ethiopia, Mali, Mozambique, Sierra Leone, Sudan, Tanzania, and Zambia) in order to determine social, economic, and environmental implications of land acquisitions in the developing world. This report is the product of a partnership between the OI and the Solidarity Movement for a New Ethiopia (SMNE). Research took place between October 2010 and January 2011 and involved field trips to the Benishangul, Gambella, and Oromia regions. The research team conducted thorough examination of the actual agreements and the extent and distribution of specific land deals. Through field research, involving extensive documentation and interviews with local informants, multiple aspects of commercial land investments were examined including their social, political, economic, and legal impacts. The team met with government officials, civil society, investors, and the local communities that have been impacted by land investments. People’s voices and stories appear throughout this report, but due to the sensitive nature of this issue and government’s increasing intolerance of dissent, their names and precise locations have been omitted. Table of ConTenTs EXECUTIVE SUMMARY ................................................................................................................................................. 1 INTRODUCTION ........................................................................................................................................................... 3 1. COUNTRY CONTEXT 1.1 Social Context ..................................................................................................................................................................4 1.2 Political Context ..............................................................................................................................................................4 1.3 Macroeconomic Context ................................................................................................................................................7 1.4 Food Security Context ................................................................................................................................................... 9 1.5 Land Tenure....................................................................................................................................................................11 1.6 Legal Basis for Land Investment .................................................................................................................................14 1.7 Investment Climate ......................................................................................................................................................16 2. STUDY OF LAND INVESTMENT 2.1 Overview of Current Investments ................................................................................................................................ 18 2.2 Rationale for Land Investment ................................................................................................................................... 20 2.3 How Much Land is Available? ...................................................................................................................................... 21 2.4 Who is Investing? .........................................................................................................................................................22 2.5 How is Land Selected for Investment? ........................................................................................................................25 2.6 The Land Investment Process .....................................................................................................................................28 2.7 Content of Deals .......................................................................................................................................................... 29 2.8 Consultation and Transparency ...................................................................................................................................30 2.9 Enforcement and Monitoring ...................................................................................................................................... 31 3. BENEFITS AND IMPACTS 3.1 Benefits..........................................................................................................................................................................34 3.2 Impacts on Food Security ............................................................................................................................................ 35 3.3 Socioeconomic and Cultural Impacts ..........................................................................................................................37 3.4 Dispossession and Displacement ...............................................................................................................................39 3.5 Environmental Impacts ............................................................................................................................................... 44 3.6 Water Use and Management ...................................................................................................................................... 46 3.7 Land Certification: Does it Make any Difference? ...................................................................................................... 46 3.8 Levels of Awareness .....................................................................................................................................................47 3.9 World Bank Principles ..................................................................................................................................................48 3.10 Areas of Further Research ........................................................................................................................................ 49 APPENDIX A: SELECTED Laws AND Regulations AFFECTING FOREIGN INVESTMENT IN ETHIOPIA ....... 52 APPENDIX B: LAND INVESTMENT Statistics NOTES .......................................................................................... 53 List of acronyms ADLI Agricultural Development Led ILC International Land Coalition Industrialization IMF International Monetary Fund AGOA Africa Growth and Opportunities Act LDC Least Developed Country AISD Agriculture Investment Support Directorate MDG Millennium Development Goal CEO Chief Executive Officer MIGA Multilateral Investment Guarantee Agency COMESA Common Market for Eastern and MoARD Ministry of Agriculture
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