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Ethiopia weighs benefits of foreign 'land grabs' | Ethiopia weighs benefits of foreign 'land grabs' |
(about 3 hours later) | |
By Duncan Bartlett Business reporter, BBC World Service | By Duncan Bartlett Business reporter, BBC World Service |
In the past few years, massive amounts of land in Africa have been bought by foreign organisations. | In the past few years, massive amounts of land in Africa have been bought by foreign organisations. |
A new report from the US-based Oakland Institute says that in 2009 alone, foreign investors bought or leased nearly 60 million hectares of land in Africa - an area about the size of France. | A new report from the US-based Oakland Institute says that in 2009 alone, foreign investors bought or leased nearly 60 million hectares of land in Africa - an area about the size of France. |
Hailemariam Desalegn, the deputy prime minister and minister of foreign affairs, told the BBC the arrangement was an advantage to Ethiopia. | Hailemariam Desalegn, the deputy prime minister and minister of foreign affairs, told the BBC the arrangement was an advantage to Ethiopia. |
But critics say the process amounts to a series of "land grabs" that deprive Africa of its own natural resources. | But critics say the process amounts to a series of "land grabs" that deprive Africa of its own natural resources. |
Benefits debated | Benefits debated |
In Ethiopia, Saudi Arabia and China are planning to grow more than one million tonnes of rice in Ethiopia and take it back to their own countries. | In Ethiopia, Saudi Arabia and China are planning to grow more than one million tonnes of rice in Ethiopia and take it back to their own countries. |
They are doing deals with the government to acquire large tracts of Ethiopian land, particularly in the western region of Gambella. | They are doing deals with the government to acquire large tracts of Ethiopian land, particularly in the western region of Gambella. |
The government argues that most of the land is not currently being used effectively and this foreign investment will benefit local communities. | The government argues that most of the land is not currently being used effectively and this foreign investment will benefit local communities. |
Not everyone agrees. | Not everyone agrees. |
An Ethiopian who is familiar with the region told the BBC that local people used the land for agriculture, hunting and for gathering fruit in times of famine. | An Ethiopian who is familiar with the region told the BBC that local people used the land for agriculture, hunting and for gathering fruit in times of famine. |
He claimed that people had been bribed by foreign companies to leave their villages, although he was unable to offer evidence of this. | He claimed that people had been bribed by foreign companies to leave their villages, although he was unable to offer evidence of this. |
'Big country' | 'Big country' |
Foreign companies often pay compensation money to people living on the land they plan to acquire. They also offer them employment and help with more efficient and productive farming processes. | Foreign companies often pay compensation money to people living on the land they plan to acquire. They also offer them employment and help with more efficient and productive farming processes. |
"Out of the arable land, the amount being sold is only 3%," Mr Hailemariam said. | |
"Of course it's huge when compared with small countries in Europe, but Ethiopia is a big country." | "Of course it's huge when compared with small countries in Europe, but Ethiopia is a big country." |
The area that is being leased is lowland where farmers are not willing to go and plough the land, Mr Hailemariam said. | |
It is often infested with malaria and the climate makes it unsuitable for small holder farmers, he added. | It is often infested with malaria and the climate makes it unsuitable for small holder farmers, he added. |
Food crisis | Food crisis |
The other problem facing the country is the rising price of food. Food prices are now 30% higher than they were a year ago, according to government statistics. | The other problem facing the country is the rising price of food. Food prices are now 30% higher than they were a year ago, according to government statistics. |
The world's worst food security crisis is continuing in the eastern Horn of Africa, a US agency has warned. | The world's worst food security crisis is continuing in the eastern Horn of Africa, a US agency has warned. |
The Famine Early Warning Systems Network said Ethiopia, Kenya and Somalia were in the middle of the world's worst food security crisis. | The Famine Early Warning Systems Network said Ethiopia, Kenya and Somalia were in the middle of the world's worst food security crisis. |
Large-scale emergency assistance was urgently needed "to save lives and treat acute malnutrition" in the region, the US agency said. | Large-scale emergency assistance was urgently needed "to save lives and treat acute malnutrition" in the region, the US agency said. |
So will selling food abroad lead to more shortages and higher prices? Not according to Mr Hailemariam. | |
"Small holder farmers feed themselves first and sell when there is a marketable surplus," he said. | "Small holder farmers feed themselves first and sell when there is a marketable surplus," he said. |
"It becomes a problem for the urban poor who have less capacity to purchase food at inflated prices. That is why we as a government allocate certain commodities and subsidise them and in that way we can alleviate some of the problems in the urban area." | "It becomes a problem for the urban poor who have less capacity to purchase food at inflated prices. That is why we as a government allocate certain commodities and subsidise them and in that way we can alleviate some of the problems in the urban area." |
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