Deal #1876

Location #1

Spatial accuracy level
Administrative region
Location
Iringa, Tanzania

Target country
Tanzania
Comment on location
Kilolo (office Iringa). The project area covers three wards of Dabaga, Idete and Ukwega - which includes Isele, Ukwega, Ipalamwa, Magome and Kising'a villages (the land under contract spans 11 villages)

Location #2

Spatial accuracy level
Administrative region
Location
Dabaga, Tanzania

Target country
Tanzania

Location #3

Spatial accuracy level
Administrative region
Location
Idete, Tanzania

Target country
Tanzania

Land area

Intended size (in ha)
30000
Size under contract (leased or purchased area, in ha)
[2009] 5975
[2013] 6300
[2014] 8098
Size in operation (production, in ha)
[2011] 1500
[2014] 4699
Comment on land area
The company is still acquiring more land. The land under contract spans 11 villages. A recent company source states the intended size is 10 000ha. The plantation has a total area of 8 098 ha, of which 4 699 ha is planted to pine and eucalyptus. 3 284 ha are set aside in their natural state. Another source states 19 000acres of land (7689ha).

Intention of investment

Intention of the investment
Timber plantation (for wood and fibre), For carbon sequestration/REDD, Other (please specify)
Comment on intention of investment
66% Pine, 33% Eucalyptus. 4 699 ha planted with pine and eucalyptus. 3 284 ha are set aside in their natural state.

Nature of the deal

Nature of the deal
Outright Purchase
Concession
Comment on nature of the deal
Six of the eleven villages agreed to sell the land to the company. The other villages (like Magome are leasing the land to the company under a 99year lease agreement).

Negotiation status

Negotiation status
[2006] Intended (Under negotiation)
[2009] Concluded (Contract signed)

Implementation status

Implementation status
[2009] Startup phase (no production)
In operation (production)
Comment on implementation status
First plantation and nursery established. Planting 1500 hectares per annum, with initial planting initiated in December 2009.

Contract farming

Comment on contract farming
The company is looking into an outgrower scheme.

Contract #1

Duration of the agreement (in years)
99

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned number of jobs (domestic)
10000
Current number of jobs (domestic)
[2011] 450
Comment on jobs created (domestic)
The company pledged to create 10000 jobs. Residents of Magome were adamant that those working on the investment farm have maintained the status of laborer and have not developed the technical skills they had expected, nor raised what they considered to be sufficient capital to initiate their own investments, as they had hoped that working for the investor would enable them to do. Workers are reportedly paid 5,000 Tshs/day for 8 hours work. Lunch was supposed to be provided at work, laborers reported that it is often not ready until hours after the work day had ended and so people instead use their own money to purchase food. All labourers are casual labor with no contract. Workers report that there are no toilets or access to drinking water. while at work.

Operating company

Name of investment project
Lukosi plantation
Comment on investment chain
Domestic partners: Tanzanian government.

 

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Data source #1

Data source type
Media report
File
Date
2010-01-15
Comment on data source
Trade Invest Africa- East Africa identified by Agri Fund as investment hotspot

Data source #2

Data source type
Research Paper / Policy Report
File
Date
2014-12-11
Comment on data source
“Investors are good, if they follow the rules” – power relations and local perceptions in the case of two European forestry companies in Tanzania M. Locher and U. Müller-Böker

Data source #3

Data source type
Research Paper / Policy Report
File
Date
2011-04-06
Comment on data source
Conservation and Land Grabbing in Tanzania by Tor A. Benjaminsen, Ian Bryceson, Faustin Maganga, Tonje Refseth

Data source #4

Data source type
Research Paper / Policy Report
File
Comment on data source
Chambi Chachage- LAND ACQUISITION AND ACCUMULATION IN TANZANIA THE CASE OF MOROGORO, IRINGA AND PWANI REGIONS, October 2010

Data source #5

Data source type
Company sources
File
Comment on data source
NEW FORESTS COMPANY: Forestry-based climate change solutions

Data source #6

Data source type
Research Paper / Policy Report
File
Comment on data source
Impacts of large-scale agricultural investments on small-scale farmers in the Southern Highlands of Tanzania: A Right to Food Perspective Hannah Twomey, Christina M. Schiavoni, Dr. Benedict Mongula, July 2015

Data source #7

Data source type
Company sources
File
Comment on data source
Job opportunity at Lukosi plantation Kilolo District Iringa Region

Data source #8

Data source type
Company sources
File
Comment on data source
Facebook- New Forests Company

Data source #9

Data source type
Company sources
File
Comment on data source
Lukosi Monitoring Public Summary December 14

Data source #10

Data source type
Company sources
File

Data source #11

Data source type
Company sources
File
Comment on data source
PLANTATION MANAGEMENT PLAN PUBLIC SUMMARY LUKOSI PLANTATION, TANZANIA Updated: November 2014

Data source #12

Data source type
Company sources
File
Comment on data source
New Forests company website

Data source #13

Data source type
Company sources
File
Comment on data source
Agrivie company Investments

Data source #14

Data source type
Media report
File
Date
2015-07-24
Comment on data source
Forestry South Africa- New Forests Company: doing business, doing good.

Data source #15

Data source type
Other (Please specify in comment field)
File
Comment on data source
Companies house UK, web check

Data source #16

Data source type
Research Paper / Policy Report
File
Comment on data source
European Development Finance Institutions and land grabs. The need for further independent scrutiny

Consultation of local community

Community consultation
Limited consultation
Comment on consultation of local community
land (use) rights of villagers of Kidabaga and Kiwalamo affected by the land deal confirmed in Sep 2010; as the land had been transferred to general land already, affected villagers were urged to sign their agreement to get compensation. There is a general lack of clarity regarding the consultation which took place for this deal. Those interviewed within Magome stated that they were not aware of the drawbacks of selling their land and the extent to which they would no longer be able to access it until after it had been sold.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
Several of the villages have little to no communal land available and they report that relations within the village, between inhabitants and also with the land, have changed, trending toward land conflict, land commodification, and the perception of certain land as a source of evil.

Negative impacts for local communities

Negative impacts for local communities
Other
Comment on negative impacts for local communities
The residents of Magome can no longer collect firewood in the areas they used to and now must share their water source with the investor.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Cash (unspecified amount)
Received compensation (e.g. for damages or resettlements)
Compensation for the Kidabaga and Kiwalamo villagers has not been paid yet. Cash has been received by some villages

Promised benefits for local communities

Promised benefits for local communities
Health
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Roads
Comment on promised benefits for local communities
New Forests Company promised to support the community in social and economic activities: to provide tree seedlings, to give Tsh 300 million every year for social services, to construct an industry to generate electricity and to engage in the provision of education, health, water. The promises made have yet to be fulfilled.

Former land owner (not by constitution)

Former land owner
Private (smallholders)
Community
Comment on former land owner
Village land (mostly belonging to individuals, partly reserve village land)

Former land use

Former land use
Smallholder agriculture
Pastoralism

Former land cover

Former land cover
Cropland
Shrub land/Grassland (Rangeland)
Comment on former land cover
A total of 41% on the property is managed as conservation areas. A total area of 37 ha of conservation area has had weed control for alien invasive exotics. 41 ha is maintained as High Conservation Value.

Detailed crop, animal and mineral information

Crops area
Eucalyptus, Pine, Trees (unspecified)

Use of produce

Has domestic use
Yes
Has export
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Timber production-- Sawmill and Pole plant at Lundamatwe village 16 KMs from Iringa town

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Groundwater

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