A PRESENTATION ON THE IMPACT OF FOREIGN

DIRECT INVESTMENT ON FARMERS IN CENTRAL

AFRICA, ON THE OCCASION OF THE WORKSHOP

ON « MAKING AGRICULTURAL INVESTMENT

WORK FOR AFRICA: A PARLIAMENTARIAN

RESPONSE TO THE LAND RUSH »

MALABO – EQUATORIAL GUINEA 8-9 OCTOBER 2013

BY ALANGEH ROMANUS CHE

MEMBER OF THE ADMINISTRATIVE COUNCIL OF PROPAC

E-mail: propac_cm@yahoo.fr

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PRESENTATION PLAN 1. PROPAC IN BRIEF

a. Intervention Map of PROPAC,

b. The Organigram of PROPAC,

c. Member Organisations,

d. Historical time line, Goal and Functioning,

e. Areas of Intervention,

f. Major Challenge.

2. FOREIGN DIRECT INVESTMENT (FDI)

a. Clarification of the Concept of FDI,

b. Land as a Natural factor of investment and human settlement,

c. The socio-economic architecture of CAR,

d. Existing opportunities and potentials for a change,

e. The current scenario in CAR Vis a Vis FDI,

f. Land Acquisition and Rural Development in CAR,

g. Summary of the impact of FDI on farmers,

h. Recommendations.

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1. THE GEOGRAPHIC FOCUS MAP OF PROPAC

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2. THE ORGANIGRAM OF PROPAC

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MEMBER ORGANISATIONS OF PROPAC NATIONAL FARMERS’ ORGANISATIONS ACCRONYM COUNTRY

Concertation Nationale des Organisations Paysannes du Burundi CNOP-Burundi Burundi

Conseil National de Concertation des Producteurs Ruraux du Tchad CNCPRT Tchad

Concertation Nationale des Organisations Paysannes de la République Centrafricaine

CNOP-CAF RCA

Concertation Nationale des Organisations Paysannes du Cameroun CNOP-CAM Cameroun

Concertation Nationale des Organisations Paysannes du Congo CNOP-Congo Congo

Concertation Nationale des Organisations Paysannes du Gabon CNOP-Gabon Gabon

Confédération Paysanne du Congo COPACO RDC

Federacao Nacional dos Pequenos Agricultores de Sao Tomé e Principe FENAPA-STP Sao Tomé et Principe

Federación Nacional de las Organizaciones de Productores deGuinea Ecuatorial

FENOCGE Guinée Equatoriale

Confederaçao das associacoes de camponeses e cooperativas agro-pecuarias de Angola

UNACA Angola

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3. HISTORICAL TIME LINE, OBJECTIVE, MISSION , VISION AND FUNCTIONING OF PROPAC

Date of creation of PROPAC : 2005 Registered Head Office: Yaoundé - Cameroon. The birth of PROPAC came after a long process launched way back in 1998 during an

enlarged gathering of Farmers’ Leaders in Central Africa Code Named « Ebolowa Call ». Ebolowa is a Town in the South Region of Cameroon. After a critical analysis of the socio-economic architecture of rural dwellers and farmers in particular of the Central African Region on one part, and considering the role of small scale farmers in the economic transformation drive on the other; resolved to put in place a permanent consultation platform of Farmers’ Organizations in Central Africa. OBJECTIVE: Create an enabling environment for the transformation of the life patterns of farmers and rural dwellers in Central Africa. MISSION: The Mission of PROPAC is to harmonize the strategies and actions of its members to ensure that the concerns and needs of farmers are taken into consideration in the elaboration, implementation and evaluation of policies, programs and projects in agricultural development and the rural world.

VISION: A modern and sustainable Family Agriculture Enterprise that is economically, socially, culturally and ecologically sound to address food and nutrition security.

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PROPAC, MEMBER OF PAFO

PAFO: Pan African Farmers Organization (2010)

An initiative of Five Regional Farmers’Organizations of African extraction.

EAFF, ROPPA, PROPAC, SACAU, UMAGRI

PROPAC is one of the founding members of PAFO.

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4. AREAS OF INTERVENTION OF PROPAC

4.1 : ORGANISING FARMERS Restructuring of Farmers in Specialized Production

Sectors and Organizing them in groups where they do not exist to:

Constitute a work force for food production and the mastery of food security and food sovereignty.

Mobilize internal resources. Participate in the elaboration of policies, programs

and development projects related to agriculture and rural development.

Constitute a veritable force capable of elaborating and developing proposals that can influence policies orientation, strategies and programs geared towards the development of the rural world.

LEVEL OF ORGANISATION: Local (CBOs, Cooperatives), National (National FOs), Regional (PROPAC) And Continental (PAFO)

Organisation of Special Groups like Women, Youths and the Minorities being gender disadvantage groups

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4. AREAS OF INTERVENTION OF PROPAC

4.2: Education and Sensitization, Training and Capacity Strengthening.

Capacity strengthening of small scale farmers in a bid to increase production and economic power.

Intervention Domains Management: Management of Family Agriculture Entreprises, The organisation and Administration of Farmers’ Organisations. New Cultural and Innovative Technics. Lobbying and Advocacy Technics. Resource mobilisation skills. Basic Hygien and Sanitation Technics, approaches to be

employed in the fight against some pandemics like HIV/AIDS, Malaria and Tuberculoses.

Capacity strengthening of Women Leaders, Gender Sensitive Participatory Approaches and Entreprenuership.

Democratic practices and Good Governanace in FOs. Citizenship. Mediation and Conflict Management. Good Communication Practices.

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4. AREAS OF INTERVENTION OF PROPAC

4.3 : Lobbying and AdvocacyWith Policy Makers and Development Partners in favour of the development of the Agricultural Sector and the Rural World.

SOME DOMAINS: The involvement and participation of FO in

the formulation and implementation of policies and programs directed to the rural world.

Increased investment by the National Governments and Development Partners in the Agricultural Sector.

The amelioration of the Quality of Investment.

Facilitating access to land and sustainable management of natural resources.

The mainstreaming of Gender in Development initiatives.

Biodiversity conservation

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4. AREAS OF INTERVENTION OF PROPAC

4.4 : REPRESENTATION AND THE DEFENCE OF THE INTEREST OF AFRICAN FARMERS

A good representation scenario of agricultural producers in policy decision circles and international forato harmonize their point of view, make heard the voice of Farmers and the taking into consideration of their preoccupations.

Negotiation and partnership building.

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5.1 MAJOR CHALLENGEThe mobilisation of resources both internally and

externally to respond to the practical and strategic gender needs of small scale farmers and rural dwellers.

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THE CLARIFICATION OF THE CONCEPT OF FOREIGN DIRECT INVESTMENT (FDI)

Some 10 years ago, FDI and related activities was found at a low gear and gradually gained momentum and visibility within the same decade.

Although over 134 million hectares land has been reportedly negotiated and acquired in Africa so far, it is only recently that our National Governments and other stakeholders are being kept informed of the degree of installation and corresponding consequences through awareness raised by some Development organizations and some CSOs. FDI is viewed by many including the Financial Times Lexicon as Investment made by a corporate body in another country different from its country of origin that involves establishing operations or acquiring tangible assets including stakes in other businesses. In other words, it is the purchase or establishment of income generating assets in a foreign country that entails the control of the operation or the organization. As per its profile, it is not just a transfer of ownership as it usually involves the transfer of factors complementary to capital, including management, technology and organizational skills. Therefore, FDI is led by companies rather than governments.

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THE CLARIFICATION OF THE CONCEPT OF FOREIGN DIRECT INVESTMENT (FDI)

Strategically, there exist three types of FDI being:

HORIZONTAL: Carrying the same activity abroad as done at home,

VERTICAL: Here, different stages of activities are added as opposed to what is done at home,

CONGLOMERATE: This is a situation where an unrelated business is added abroad.

In Africa, FDI has introduced a phenomenon of Large Scale Land Acquisition, with most of the land deals slated for Agriculture, industry, Bio-fuel, Conservation and tourism.

However, this does not deny the fact that domestic investors or “Heavy Weight Elite” do not have a role in it.

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LAND AS A NATURAL FACTOR OF INVESTMENT AND HUMAN SETTLEMENT

Land is pivotal as far as human settlement and investment is concerned, and so it will sound difficult if not impossible for us to talk about economic, social and cultural development initiatives without putting land and land related issues high on our agenda.

Introducing the concept of FDI in the transformation of our economies demands that we need to go beyond the traditional thinking pattern of “Sustainable Land Use” by building strategic partnerships that can develop pragmatic solutions to both the practical and strategic gender needs confronting land users particularly farmers and rural dwellers in Africa globally and in the Central African Region today.

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THE SOCIO ECONOMIC ARCHITECTUREOF THE CENTRAL AFRICAN REGION (CAR)

The Central African Region (CAR) is one of the five Regions of the African continent. Being one of the regions with abundant land and other natural resources, over 75% of its population depends on agriculture for livelihood. Unfortunately, the past 25 years witnessed a steady decline in agricultural production and income levels of farmers and rural dwellers largely due to the total disengagement of the national governments from the agric sector, difficulties is accessing land, inputs, credits and social protection.

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EXISTING OPPORTUNITIES AND POTENTIALS FOR A CHANGE

The African Union/NEPAD CAADP framework that seeks to stimulate economic growth across the continent through agricultural transformation, and also influences policies orientation in favour of the agric sector e.g 10% annual budget allocation to agriculture. It also employs a broad and inclusive approach to an extend of including farmers in policy decisions at continental, regional and national levels.

The presence of Regional Economic Commissions like ECCAS. The Economic Commission of Central African States for the first time has elaborated a Common Agricultural Policy, a Regional CAADP COMPACT, and a Regional Agricultural and Food and Nutrition Security Investment Plan with the active participation of farmers represented by PROPAC.

PROPAC has been able to represent, negotiate, lobby, advocate and strengthened ten National Farmers’ Organizations from all the ten Member States of the REC since 2005.

The existence of AU Legal Instruments relating to land and other Institutions like, the Nairobi Declaration, The AU Voluntary Guidelines, Land Policy Initiative and its Working Tools.

Looking at the above potentials, there exist no shadow of doubts that the CAR is well placed. However, this will be on the condition that an enabling environment is created by the Heads of States and Governments of this Region.

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THE CURRENT SCENARIO IN CAR VIS-À-VIS FDI

Some countries have legal instruments that seeks to facilitate access to land for farmers and other underprivileged people and also promote participatory approaches in the management of land and other natural resources, but the gab between theory and ground realities is too wide.

Some countries do not have clear regulatory frameworks on land management or has no procedural mechanisms regulating the management of land or protecting the socio-economic rights of rural dwellers,

Other key stakeholders like farmers do not have a voice in land management and other land related deals.

No existing Monitoring and Evaluation mechanisms/accountability framework to measure the degree of engagement compliance,

In some settings farmers are displaced and the seized land is sold to Multinationals for FDI and no rehabilitation process is envisaged or takes place,

In some settings where investors manifest interest for rehabilitation processes, this will never see the light of the day,

Uninformed decisions taken by law makers,

Failure to apply land legislations in cases where they exist,

Technical deficits registered in the negotiation processes of so many land deals due to the lack of the minimum capacity needed.

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LAND ACQUISITION AND RURALDEVELOPMENT IN THE CAR

Any form of investment or development initiatives done in the rural world certainly has a positive or negative impact on the agrarian community or rural dwellers. Therefore, the development of road infrastructures, energy, market infrastructures, introduction of transformation units will go along way to add value to the traditional way of conducting businesses.

So far, the economy in our rural world is controlled by the farmers and all farmers depends on land as their principal capital in their activities in the rural world, and so not having access to this capital impacts negatively on them.

Corporate take over of the agricultural sector means taking over control of the rural world and taking over control of the rural world is equal to an “Advanced Form of Slavery” being introduced on the rural dwellers.

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SUMMARY OF IMPACT OF FDI ON FARMERS

Today, the concept of FDI or International land deals as a global phenomenon is no longer news in the CAR. If nothing is done to regulate it, although with considerable variation amongst countries, we risk witnessing the following as its impact particularly on the regional agrarian economy and rural dwellers: -

A decrease in production leading to a decrease in income levels.

An increase in the rate of food and nutrition insecurity.

A decrease in labour force.

An increase in social conflicts.

Increase in the number of people living in hunger, abject poverty and misery.

An increase in the rate of illiteracy and delinquency.

High mortality rate registered in the rural world.

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RECOMMENDATIONS Lets make some efforts to do without FDI and If our National Governments MUST do with FDI, we

should adopt “Responsible International Agricultural Investment” that will lead to sustainable development.

It should be an investment process that will maximize government revenue generation, generates employment, promote infrastructural development, protects the environment, ensures social protection and above all, ensures food and nutrition security along the sidelines of food sovereignty. Hence the following recommendations: -

Enough awareness be raised on this existing phenomenon,

Capacities of law makers, decision makers, farmers leaders and other CSO be developed to take informed decisions when need be.

Farmers’ Organizations at national and regional levels be strengthened to be more assertive and proactive to be able to identify potential partners and conduct the necessary advocacy and timely too.

National Governments to create Multidisciplinary Commissions which are broad and inclusive to manage land and land related issues at country level.

Comprehensive regulatory framework be developed at national level with special provisions creating access to land for women, youths and other gender disadvantage groups,

National Governments should clearly demarcate national land stating quota for domestic agriculture, industrial zone, and also highlighting the percentage of revenue from lease that will be included in the annual budget for each development sector.

Accountability Frameworks should be developed.

Develop Monitoring and Evaluation Mechanisms.

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Je vous remercie

THANK YOU

Obrigado

Gracia

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