Deal #1963

Location

Location #1

Spatial accuracy level
Administrative region
Location
Mubende, Uganda

Target country
Uganda
Comment on location
Mubende District
General info

Land area

Intended size (in ha)
2511
Size under contract (leased or purchased area, in ha)
2511
Size in operation (production, in ha)
1802
Comment on land area
550ha remain as natural, indigenous tropical rainforest. 262ha are occupied by roads, housing, processing and natural papyrus swamps

Intention of investment

Intention of the investment
Food crops

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Neumann Gruppe GmbH / Kaweri Coffee Plantation Ltd. (Kaweri) will lease the land from the UIA for 99 years free from encumbrances.

Negotiation status

Negotiation status
[2000] Intended (Expression of interest)
[2001] Concluded (Contract signed)
Comment on negotiation status
Expression of interest: In 2000 NKG is looking for a suitable location to set up a socially and ecologically sustainable plantation. Various countries in South America, Asia and Africa are taken into consideration. Uganda was chosen for the following reasons: relative political stability favorable climatic conditions high quality standard of Ugandan coffee availability of land in form of registered private ownership support from the Ugandan Investment Authority (UIA) and the entire government the opportunity to set up a sustainable model farm in an impoverished region in Africa and making a positive contribution to developing the region this way at the same time

Implementation status

Implementation status
In operation (production)
Contracts

Contract #1

Duration of the agreement (in years)
99
Employment

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
3250
Current number of employees (total)
250
Current number of daily/seasonal workers (total)
1500
[2013] 2500
Comment on jobs created (total)
There are 400 – 800 employees who carry out various jobs on the farm on a daily basis (or under the task system). Kaweri has thus created an average of around 800 permanent jobs. During harvest up to 2,500 coffee pickers are employed. almost 50 percent of the current full-time employees are women
Investor info

Operating company

Operating company
Kaweri Coffee Plantation Ltd. (#36989)

 

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Data sources

Data source #1

Data source type
Research Paper / Policy Report
URL
http://www.fian.org/resources/documents/others/report-on-land-grabbing/pdf
File
Date
2010-01-01
Comment on data source
"The Impact of Europe's Policies and Practices on African Agriculture and Food Security: Land Grab Study" by Graham, Aubry, Kunnemann and Suarez.

Data source #2

Data source type
Company sources
URL
http://www.kaweri.com/
File

Data source #3

Data source type
Media report
URL
http://www.fian.be/IMG/pdf/mubende_web.pdf
File
Date
2013-01-01
Comment on data source
Le cas Mubende - Ouganda « Le café de L’InjustIce » by FIAN

Data source #4

Data source type
Company sources
URL
http://www.kaweri.com/ourfarm
File
Date
2013-01-30

Data source #5

Data source type
Company sources
URL
http://www.kaweri.com/aboutus/history
File
Date
2013-04-16

Data source #6

Data source type
Company sources
URL
http://www.kaweri.com/ourfarm/nursery
File
Date
2013-01-30

Data source #7

Data source type
Media report
URL
http://www.farmlandgrab.org/post/view/21941
File
Date
2013-04-15
Comment on data source
Farmland Grab- Uganda condena a una multinacional a devolver sus tierras a 2.000 campesinos
Local communities / indigenous peoples

Consultation of local community

Community consultation
Other
Comment on consultation of local community
Information: The previous owner had sold the land in 2001 to the state of Uganda. Prior to that, he had informed the people having settled there about the upcoming sale

How did the community react?

Community reaction
Mixed reaction

Displacement of people

Displacement of people
Yes
Number of people actually displaced
2041
Comment on displacement of people
A few individual residents – some of who were not aware that they lived on land that was part of the property in question – refused to move and did not accept compensation payments. These persons were subsequently forced to leave the land; government authorities assisted the former owner in this process. NKG says: 25 families were displaced by force.

Negative impacts for local communities

Negative impacts for local communities
Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The previous owner had sold the land in 2001 to the state of Uganda. Prior to that, he had informed the people having settled there about the upcoming sale and subsequently made offers of compensation. The compensation comprised allocations of new land and free transport to the new land or statutory monetary compensation. Also, a state-approved and chartered land surveyor surveyed the land, and a consulting firm looked into the possible social and ecological impacts of the project. Kaweri itself was at no point involved in the compensation payment negotiations, since these were to take place before the hand-over and furthermore were internal Ugandan affairs.
Received compensation (e.g. for damages or resettlements)
166 families entitled to compensation accepted compensation and verifiably confirmed this. compensation in the form of land was provided to 102 families. Another 64 families were given monetary compensation because they did not live in the area but did farm land there.

Promised benefits for local communities

Promised benefits for local communities
Health
Capacity Building
Other
Comment on promised benefits for local communities
- Promoting sustainable farming in the region and exchange of knowledge with up to 53,000 small farmers of the region as part of the “Building Coffee Farmer’s Alliances in Uganda” and in collaboration with donor organisations such as the EU and USAID - Protection of the diversity of species through protected areas, biological corridors and shade trees - Improving infrastructure and medical care - Drilling of six freely accessible drinking fountains - laying water pipes with free drinking water to two neighbouring villages - Positive influence of the farm on the entire neighborhood – which in turn leads to a sustainable economic development of the region

Materialized benefits for local communities

Materialized benefits for local communities
Health
Other
Comment on materialized benefits for local communities
the majority of the employees from the local community are provided with free housing, electricity, clean water and medical facilities.
Former use

Former land owner (not by constitution)

Former land owner
State
Private (large-scale farm)
Comment on former land owner
Block 99 had been privately owned since 1964. Since 1977 the land had been owned by Emmanuel Bukko Kayiwa. During the dictatorship of Idi Amin (1971–1979), Mr Kayiwa had left the country temporarily and returned in the 1990s. In the meantime, the Ugandan military built a base for former members of the army in the northern part of the property, which was inhabited by around 2,500 people. These people farmed a large part of the northern territory of Block 99. And grew mostly maize and Tapioca. There was also a very small number of coffee plants. Some people had built clay huts in the area, others lived outside the area. When Mr Kayiwa contacted NG in July 2000 regarding the land, he had already been engaged in sales negotiations with the Ugandan army for more than two years. diligence audits establish that Mr Kayiwa’s ownership of the land is beyond doubt and that the area is free from third-party claims Mr Kayiwa had sold the land in 2001 to the state of Uganda.

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Produce info

Detailed crop, animal and mineral information

Crops area
Coffee Plant

Use of produce

Has export
Yes
Gender-related info

Any gender-specific information about the investment and its impacts

Comment on gender-related info
almost 50 percent of the current full-time employees are women
Overall Comment

Overall comment

Overall comment
Land claim under discussion. According to one source, a Ugandan judge ruled to company had to give back the land to the people who were removed in 2001 and compensate them with 12 million Euro.
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