ActionAid new report on a land grab in Tanzania under the G8 New Alliance | Land Portal

 


In the Bagamoyo District, a lease of over 20.000 hectares of land  is being secured for the next 99 years to a Swedish-owned company called EcoEnergy,  for a sugar-cane plantation project  supported by the African Development Bank, the International Fund for Agriculture and Development, and the Swedish International Development Agency.


One of the ways that EcoEnergy proposes the project will benefit the communities is through an ‘outgrower’ or contract farming scheme in which 1,500 farmers will grow sugarcane and supply the company at an agreed price.


The report shows that approximately 1,300 people will lose some or all of their land or homes and warns that the proposal is very risky for the farmers as they are expected, in groups of 50, to create their own company and take out loans of at least US$800,000. This is equivalent to US$16,000 per person which is 30 times the minimum annual agricultural salary in Tanzania.  EcoEnergy estimates that it will take at least seven years for the farmers to pay back the loan and make a profit.


On this specific project in Bagamoyo, ActionAid is calling on the government of Tanzania to suspend the project and conduct a new process of consultation with the community.


 


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