Deal #1978

Location #1

Spatial accuracy level
Administrative region
Location
Nakaseke, Uganda

Target country
Uganda

Land area

Intended size (in ha)
41000
Size under contract (leased or purchased area, in ha)
[2009] 161
Size in operation (production, in ha)
[2012] 28
Comment on land area
Start with 540ha, plans to expand to 41,000ha in 10 years. Other sources state that the area under contract is 1000 hectares. A new source (Policy Brief SAIA) and Uganda media source states that the area under contract is 400 acres- 161 hectares only. Other data sources state 8100ha intended size. The founder of the company (Qiu Lijun) was under investigation for fraud and claimed to have access to more land than he really did.

Intention of investment

Intention of investment
Food crops, Livestock
Comment on intention of investment
Includes mushroom production

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2009] Concluded (Contract signed)

Implementation status

Implementation status
[2009] Startup phase (no production)
[2011] In operation (production)
Comment on implementation status
In 2012 80 hectares had been cleared. Hectares used for crop growing has decreased from 2012.

Leasing fees

Annual leasing fee
50000000
Annual leasing fee currency
Uganda Shilling
Annual leasing fee type
for specified area
Comment on leasing fees
These leasing fees are an approximation.

Contract farming

Contract farming
No

Contract #1

Duration of the agreement (in years)
30

Number of total jobs created

Jobs created (total)
Yes
Current number of jobs (total)
[2014] 21

Number of jobs for foreigners created

Jobs created (foreign)
Yes
Current number of jobs (foreign)
[2014] 5
Comment on jobs created (foreign)
Chinese

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2014] 16

Operating company

Operating company
Name of investment project
Hanhe Farm
Comment on investment chain
Claimed to have funding from the China- Africa Development Fund (which was not the case).

 

Network of parent companies and tertiary investors/lenders. Please right-click the nodes to get more details.

Legend
  • Is parent company of
  • Is tertiary investor/lender of
  • Left-click to reveal related parent companies and tertiary investors/lenders.
  • Right-click on investors to get more information.
  • Left-click to hide related parent companies and tertiary investors/lenders.

Data source #1

Data source type
Media report
File
Comment on data source
Foreign direct investment in Land in Developing countries, 2009

Data source #2

Data source type
Media report
File
Date
2012-10-03
Comment on data source
Grain Dataset

Data source #3

Data source type
Media report
File
Date
2011-10-10
Comment on data source
Ecns.cn- Agriculture in Africa New hope for Private firms.

Data source #4

Data source type
Media report
File
Date
2012-05-10
Comment on data source
Daily Monitor- Nakaseke residetns query occupation of wetland by Chinese firm, pg 34 of newspaper sources, received from Martin

Data source #5

Data source type
Research Paper / Policy Report
File
Comment on data source
China Africa Research Initiative-Policy Brief no 01/2014. The Political Ecology of Chinese Agriculture Investment in Uganda: The case of Hanhe Farm.

Data source #6

Data source type
Media report
File
Date
2011-10-10
Comment on data source
Agriculture in Africa new hope for private firms

Data source #7

Data source type
Media report
File
Date
2012-05-03
Comment on data source
Chinese Farm Accused of Enviromental Degradation

Data source #8

Data source type
Research Paper / Policy Report
File
Comment on data source
data: Chinese Agricultural Investments in Africa

Data source #9

Data source type
Other (Please specify in comment field)
Comment on data source
Book: Will Africa Feed China? Brautigam, D. 2015

Consultation of local community

Community consultation
Limited consultation

How did the community react?

Community reaction
Rejection

Displacement of people

Displacement of people
Yes
Number of households actually displaced
17
Comment on displacement of people
17 families

Negative impacts for local communities

Negative impacts for local communities
Displacement
Other
Comment on negative impacts for local communities
The company's destruction of the wetland as well as water diversion has lead to water shortages for the cattle and a reduction in papyrus, which the locals use for crafts.

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The previous Ugandan private investor was supposed to pay 300000 Uganda Shillings for the total area between the 17 families.
Received compensation (e.g. for damages or resettlements)
Most families did not receive their compensation. The Hanhe farm co did not have to pay the compensation.

Former land owner (not by constitution)

Former land owner
Private (large-scale farm)
Comment on former land owner
A Ugandan private investor leased the land in 2004.

Former land cover

Former land cover
Marginal land
Other land (e.g. developed land – specify in comment field)
Comment on former land cover
Wetlands- the company has excavated onto the wetland, removing trees and diverting the Lugogo River. The wetland has been destroyed for farmland illegally with a disregard for the conditions set out by the National Environment Management Authority in order to safeguard the wetland. The site is a protected area.

Detailed crop, animal and mineral information

Crops area
Corn (Maize), Fruit (unspecified), Vegetables (unspecified)
Livestock area
Aquaculture (animals), Poultry

Use of produce

Has domestic use
Yes
Has export
Yes
Country 1
China

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Food, animal feed, maize mill with a capacity of 30-ton.

Water extraction envisaged

Water extraction envisaged
Yes

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
Lugogo River and wetland

Overall comment

Overall comment
Makande accuses the management of Hanhe Farm of diverting the flow of River Lugogo to irrigate its farm and carrying out massive deforestation. The founder of the company (Qiu Lijun) was under investigation for fraud and claimed to have access to more land than he really did.

March 7, 2019, 3:21 p.m.

overwritten

This version

Compare with previous version

July 28, 2016, 5:44 p.m.

overwritten

Show this version

Compare with previous version

May 31, 2016, 4:58 p.m.

overwritten

Show this version

Compare with previous version

May 4, 2016, 3:40 p.m.

overwritten

Show this version

Compare with previous version

Feb. 6, 2015, 8:31 a.m.

overwritten

Show this version

Compare with previous version

Jan. 28, 2015, 8:27 p.m.

overwritten

Show this version

Compare with previous version

Jan. 16, 2015, 3:04 p.m.

overwritten

Show this version

Compare with previous version

Oct. 6, 2014, 5:18 p.m.

overwritten

Show this version

Compare with previous version

May 24, 2013, 10:46 a.m.

overwritten

Show this version

Compare with previous version

May 9, 2013, 11 a.m.

overwritten

Show this version

Compare with previous version

April 3, 2013, 11:56 a.m.

overwritten

Show this version

Compare with previous version

Feb. 26, 2013, 8:48 p.m.

overwritten

Show this version

Compare with previous version

Feb. 25, 2013, 11:17 a.m.

overwritten

Show this version

Compare with previous version

Feb. 15, 2013, 5:03 p.m.

active

Show this version

First version

There are no comments to this deal yet.

Add a comment

(mandatory)
(mandatory)
(mandatory)

I've read and agree to the Data Policy.