Africa News blog
African business, politics and lifestyle
The announcement by a U.S. investor that he has a deal to lease a swathe of South Sudan for farmland has again focused attention on foreigners trying to snap up African agricultural land.
A few months ago, South Korea’s Daweoo Logistics said it had secured rights to plant corn and palm oil in an even bigger patch of Madagascar – although local authorities said the deal was not done yet. Investors from Asia and the Gulf are looking elsewhere in Africa too.
Investor interest in farmland – not only in Africa – grew sharply after food prices shot to record highs last year. Although commodity prices have fallen since, there is still anticipation of long term demand growth once the world emerges from its current economic troubles.
Philippe Heilberg, chairman and CEO of New York-based investment firm Jarch Capital, told Reuters he saw ripe opportunity for decades in south Sudan’s Mayom county. The deal covers land nearly twice the size of the Indian Ocean island of Mauritius.
This week’s G8 summit in Japan marks 6 years since the group of the world’s top industrial nations adopted a comprehensive action plan to support initiatives to spur the development of Africa. The G8 Africa Action Plan adopted at a summit in Kananaskis, Canada, in 2002 was seen as the biggest boost to Africa’s own home-grown development initiative, the New Partnership for Africa’s Development, NEPAD. The G8 Plan pledges to help Africa tackle the main obstacles to its development — from promoting peace and security, to boosting trade and implementing debt relief to expanding education, health facilities and fighting HIV/AIDS.
As a followup to the Action Plan, the G8 at its 2005 summit in Scotland agreed to double aid by 2010 to $50 billion, half of which would go to Africa. But as G8 leaders prepared for this year’s summit in Japan, the Africa Progress Panel set up to monitor implementation of the 2005 commitments issued a gloomy report last month. It said under current spending the G8 would fall $40 billion short of its target. Other aid agency officials accused the G8 of backtracking on its pledges to Africa.