Deal #1322

Location #1

Spatial accuracy level
Coordinates
Location
Yeji, Ghana

Latitude
8.230833333
Longitude
-0.7475
Target country
Ghana
Comment on location
Brong-Ahafo province, Pru district. In three plots close together- Kwaese plot 1 171ha, plot 2 kadue 813ha, plot 3 gentydua 5766ha.

Land area

Intended size (in ha)
10000.0
Size under contract (leased or purchased area, in ha)
[2011] 6750
Size in operation (production, in ha)
[2012] 450
[2013] 720
[2014] 1400
Comment on land area
There were earlier plans to have 10,000ha. Another data source states 46 000ha under contract. Company website states 6750ha leased. Of the 6750ha leased, only 4500ha will be developed.

Intention of investment

Intention of investment
Biofuels
[2014-01-01] Food crops
[2020, current] Biofuels, Food crops
Comment on intention of investment
Following the widespread collapse of Jatropha, the company slowed the production and rather added food crops and vegetable since 2014 to the investment. This was to keep the company operational in absence of jatropha yields. In 2020 the company established new jatropha nurseries.

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
In addition to the 50 years lease, the company also prepared an agreement/compensation/community development plan with the local chiefs.

Negotiation status

Negotiation status
[2008] Intended (Under negotiation)
[2011] Concluded (Contract signed)
Comment on negotiation status
Land lease signed in November 2011. Full registration obtained in 2012.

Implementation status

Implementation status
[2008] Startup phase (no production)
[2012] In operation (production)
[2020, current] Startup phase (no production)
Comment on implementation status
Experimental trail launched in 2008. Environmental permit received in 2012. Full production expected to be reached by 2017. The initial jatropha trees are abandoned because of low yield. In 2020 the company established a new nursery with a better suited variety of jatropha.

Purchase price

Purchase price
6500
Purchase price currency
US Dollar ($)
Purchase price area type
for specified area
Comment on purchase price
On signing the lease agreement, a one-off payment of USD 6500 was paid to the Kadue stool on 30th March 2012 through the Office of the administrator of stool lands

Leasing fees

Annual leasing fee
1
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
a yearly rent of USD 1 per ha is to be paid to the stool as rent

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Not on leased / purchased area (out-grower, in ha)
1000
Comment on contract farming
Intended, not yet operational because of the slow down in jatropha production

Contract #1

Contract date
2011-11-04
Duration of the agreement (in years)
50

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
250
Planned employees (total)
50
Planned daily/seasonal workers (total)
200
Current number of jobs (total)
250
Current number of employees (total)
15
Current number of daily/seasonal workers (total)
235

Number of jobs for foreigners created

Jobs created (foreign)
Yes
Current number of employees (foreign)
[2015-01-01] 1
Comment on jobs created (foreign)
There was an Indian working at the company as at 2015

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
250
Current number of employees (domestic)
15
Current number of daily/seasonal workers (domestic)
235

Operating company

Operating company
Comment on investment chain
Smart Oil Ghana was originally formed by GenCorp Industries ltd and Agroils srl. Smart Oil is a subsidiary of JOil (Singapore) Pte Ltd from March 2018. JOil (Singapore) Pte Ltd. operates as a subsidiary of Temasek Life Sciences Laboratory Limited. Temasek Life Sciences Laboratory Limited is an educational institution in Singapore.

 

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Data source #1

Data source type
Media report
File
Date
2010-01-01
Comment on data source
"Africa: up for grabs. The scale and impact of land grabbing for agrofuels", by Friends of the Earth Africa and Europe, August 2010

Data source #2

Data source type
Media report
File
Comment on data source
Friends of the Earth: Africa up for Grabs

Data source #3

Data source type
Company sources
File

Data source #4

Data source type
Company sources
File

Data source #5

Data source type
Media report
File

Data source #6

Data source type
Personal information
Date
2013-07-08
Comment on data source
See email exchange with Kerstin Nolte

Data source #7

Data source type
Research Paper / Policy Report
File
Date
2014-04-17
Comment on data source
The journal of development studies- Testing claims about large land deals in Africa: Findings from a multi-country study

Data source #8

Data source type
Research Paper / Policy Report
File
Comment on data source
Biofuels and the hazards of land grabbing: Tenure (in)security andindigenous farmers’ investment decisions in Ghana. Bismark Ahaa, Jonathan Z. Ayitey

Data source #9

Data source type
Company sources
File

Data source #10

Data source type
Media report
File
Comment on data source
Company Overview of Smart Oil Ltd

Data source #11

Data source type
Company sources
File

Data source #12

Data source type
Media report
File
Comment on data source
Company Overview of JOil (Singapore) Pte Ltd.

Data source #13

Data source type
Company sources
File

Data source #14

Data source type
Research Paper / Policy Report
File
Publication title
Identifying large-scale land acquisitions and their agro-ecological consequences: a remote sensing based study in Ghana
Date
2017

Data source #15

Data source type
Research Paper / Policy Report
File
Publication title
Identifying large-scale land acquisitions and their agro-ecological consequences : a remote sensing based study in Ghana
Date
2017

Data source #16

Data source type
Research Paper / Policy Report
Publication title
Labelling large-scale land acquisitions as land grabs: Procedural and distributional considerations from two cases in Ghana
Date
2019-10-01
Includes in-country-verified information
Yes
Comment on data source
Data was collected by Dr Ahmed Abubakari through direct field visits between 2014-2017 as well as email exchnages with CEO of Smart Oil

Data source #17

Data source type
Other (Please specify in comment field)
Date
2020-15-11
Includes in-country-verified information
Yes
Comment on data source
Excel sheet Ghana Data Campaign team

Data source #18

Data source type
Government sources
Publication title
Registered Companies With Valid GIPC Certificates as at 30th March 2018
Date
2018-03-30

Data source #19

Data source type
Personal information
Date
2020-09-25
Includes in-country-verified information
Yes
Comment on data source
Ghana Data Campaign field visit

Names of communities / indigenous peoples affected

Comment on communities / indigenous peoples affected
The company had different concessions at Kwaese, Kadue and Gentydua thereby employing people from all these area include Kobre

Recognitions status of community land tenure

Recognition status of community land tenure
Community traditional or customary rights recognized by government

Consultation of local community

Community consultation
Limited consultation
Comment on consultation of local community
Consultation was limited only to the chiefs and few elites

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
Some dispute the land ownership boundaries, others are unhappy that the company is now cultivating food crops other than originally planned jatropha, others are not happy about the wage rate, some are also happy to have their first ever formal employment.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
The paramount chief of Yeji and that of Kadua chief are disputing boundary issues and sharing of compensation paid by Smart Oil

Displacement of people

Displacement of people
Yes
Comment on displacement of people
displacement from agricultural fields was massive

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation
Cultural loss
Comment on negative impacts for local communities
Most respondents complained about the absence of their wives to do domestic household works since they mostly spend the entire time at the plantation. Women working there also complained of exposure to agrochemicals

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Paid for visible improvements (crops and buildings) not land
Received compensation (e.g. for damages or resettlements)
a one-off payment of USD 6500 was paid Kadue stool

Promised benefits for local communities

Comment on promised benefits for local communities
community fund: $10,000 seeds, $5,000 /yr

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Comment on former land cover
Wooded savannah land

Detailed crop, animal and mineral information

Crops area
Corn (Maize), Jatropha, Yam, Pepper
Comment on crops
Jatropha yield 2012: 1.4 ton/ha, 20131.3 ton/ha, 2015: 1.5 ton/ha There are also parcels of vegetables (i.e. green pepper), yam and maize cultivation within site owned by the company. The manager indicated that the cultivation of those crops was to keep the company alive as jatropha was not giving better yields.

Use of produce

Has domestic use
Yes
Has export
Yes
Export
100
Country 1
Italy
Comment on use of produce
Fuel for Italian energy company and local mine. Food crops for local community

In country processing of produce

In country processing of produce
No
Comment on in country processing of produce
There is no domestic production of biofuels in Ghana. The company only produces the seeds and exports them.

Water extraction envisaged

Water extraction envisaged
No
Comment on water extraction envisaged
Production is rainfed.

Overall comment

Overall comment
No mention of Ghana activities on Agroils website (www.agroils.com). US$ 5.3 million by 2015.

Sept. 29, 2020, 10:32 a.m.

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