Please note: you are viewing an old version of this deal. The current version can be found here: Deal #1348

Deal #1348 Version #52825

Ghana

Created at

2013-02-15

Last update

2020-06-29

Last full update

2024-04-24

Land area

Intended size

5 000 ha

Size under contract (leased or purchased area)

[2009] 1285.0 ha
[2012, current] 2150.0 ha

Size in operation (production)

[2011, current] 750.0 ha

Comment on land area

Another source states that the company was only able to bring 300 ha under cultivation.

Intention of investment

[current] Food crops

Nature of the deal

Outright purchase

Negotiation status

[2003, current] Concluded (Contract signed)

Comment on negotiation status

Feasibility study done in 2003, only started operating in 2008. The government originally acquired the land in 1977. Government contribution to the project was 1000 ha of land. In 2011 the company was reported to be negotiating a 50 year lease for 2000 ha.

Implementation status

[2009] In operation (production)
[2014, current] Project abandoned

Comment on implementation status

Land disputes quickly flared up, therefore only a fraction of the rice projected was ever grown, and the company soon plunged into debt. The government lent the company US$7.2 million to revamp project, but the project was ultimately abandoned.

Purchase price

260

per ha

Comment on purchase price

The land was acquired by government decree. Prairie Rice, which believed it was buying the land, deposited the sale price (US$260 per hectare—the basis for this price was not explained) in an escrow account awaiting a court decision on the identity of the former landowners to whom the money should be paid. Ten community claimants filed a suit, arguing that they were the rightful landowners. The company was allowed to cultivate the land while the dispute was being resolved. Prairie Rice also paid a US$100,000 registration fee to the Lands Commission.