Deal #3003

Location #1

Spatial accuracy level
Administrative region
Location
Masimera, Sierra Leone

Target country
Sierra Leone

Location #2

Spatial accuracy level
Administrative region
Location
Koya, Sierra Leone

Target country
Sierra Leone

Location #3

Spatial accuracy level
Administrative region
Location
Masama, Sierra Leone

Target country
Sierra Leone

Land area

Intended size (in ha)
126000
Size under contract (leased or purchased area, in ha)
[2010] 126000
Size in operation (production, in ha)
[2010] 500
Comment on land area
25,000ha in Masimera, 27,000ha in Koya, 74,000ha in Loko Masama. Quifel maintains that the cultivatable area is limited to 60,000 ha.

Intention of investment

Intention of the investment
Biofuels, Food crops, Agriculture unspecified
Comment on intention of investment
Quifel’s main focus is agrofuels; possibly plans to produce both oil crops and food crops, depending on varying market values: originally it informed local people that it intended to produce palm oil for agrofuel; it now claims its intention is to produce food crops for local and regional consumption

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
The company has not negotiated any agreement with the government but has dealt directly with chiefs and landowners. Lease extendable for 20 years.

Negotiation status

Negotiation status
[2010] Concluded (Oral Agreement)
Comment on negotiation status
The company has not negotiated any agreement with the government but has dealt directly with chiefs and landowners. Quifel's local offices have since disappeared and the status of the leases is not clear.

Implementation status

Implementation status
[2010] Startup phase (no production)
[2010] In operation (production)
Comment on implementation status
No ESHIA was carried out. Pilot planting initially in 2010. Quifel's local offices have since disappeared and the status of the leases is not clear. One data source states that the company has disappeared from the country. Grain states that the project has failed.

Leasing fees

Annual leasing fee
5
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
rental rate starting at US$5 per hectare on land in use, rising to US$8 per hectare in year 4

Contract farming

Contract farming
No

Contract #1

Duration of the agreement (in years)
49

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2010] 70
Comment on jobs created (domestic)
Jobs were created during pilot planting (between 70-100). Employment opportunities through Quifel have been limited

Operating company

Comment on investment chain
Quifel Agribusiness (SL) Ltd, incorporated in 2008 in Sierra Leone

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2011-01-01
Comment on data source
Understanding Land Investment Deals in Africa: Sierra Leone, Oakland Institute

Data source #2

Data source type
Research Paper / Policy Report
File
Comment on data source
Social and Environmental Impacts of Agricultural Large-Scale Land Acquisitions in Africa—With a Focus on West and Central Africa by M. Richards

Data source #3

Data source type
Research Paper / Policy Report
File
Comment on data source
Grain-Planet palm oil, September 2014

Data source #4

Data source type
Other (Please specify in comment field)
File
Comment on data source
EJAtlas-- Quifel Agribusiness agrofuels or foodcrop projects in Port Loko, Sierra Leone

Data source #5

Data source type
Media report
File
Comment on data source
Sierra Herald- Understanding Land Investment Deals in Africa Country Report: Sierra Leone

Data source #6

Data source type
Research Paper / Policy Report
File
Comment on data source
UNDERSTANDING LAND INVESTMENT DEALS IN AFRICA QUIFEL INTERNATIONAL HOLDINGS IN SIERRA LEONE LAND DEAL BRIEF , JUNE 2011

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
The global farmland grab in 2016: how big, how bad?

Data source #8

Data source type
Research Paper / Policy Report
File
Date
2018-06-06
Comment on data source
Grain- Failed farmland deals: a growing legacy of disaster and pain

Consultation of local community

Community consultation
Limited consultation
Comment on consultation of local community
Once they had been convinced to agree to the lease, the landowners were gathered, photographed and asked to sign a Power of Attorney giving their sectional chiefs the right to sign the lease on their behalf. By negotiating a Power of Attorney between landowners and chiefs, landowners were marginalized from the process and poorly informed about the implications of the leases. The villagers are not well-informed about the terms of the leases or their extent. They are under the impression that they have plenty of “excess” land to share with Quifel. To convince local community members to lease their land, Quifel told landowners and chiefs that leases would support development.

How did the community react?

Community reaction
Rejection
Comment on community reaction
At least one protest is recorded, in response to Quifel clearing plots for test plantings. The Quifel investment is indirectly related to a violent dispute over the position of Paramount Chief in Loko Massama Chiefdom, and tension remains high in the area because of perceived advantages that the position would afford because of Quifel’s presence.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
The Quifel investment is indirectly related to a violent dispute over the position of Paramount Chief in Loko Massama Chiefdom, and tension remains high in the area because of perceived advantages that the position would afford because of Quifel’s presence. The agreement has already caused internal conflicts in the community of Madina, where people turned on each other, believing that the company had been “tipping” certain individuals to garner their support for the investment.

Displacement of people

Displacement of people
Yes
Number of people facing displacement once project is fully implemented
72000
Comment on displacement of people
It was estimated that about 72,000 people living in 367 villages would be affected.

Negative impacts for local communities

Negative impacts for local communities
Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
lease payments shall start in the first year at USD 5 per ha, rising by one dollar each year until, at year four, they peak and remain at USD 8 per ha-- this is less than the USD 12 per ha recommended by Sierra Leone’s Ministry of Agriculture, Forestry, and Food Security. According to the lease agreements, the company will pay land rent only to the Paramount Chiefs, who are then responsible for its distribution. Quifel promised employment and other development opportunities. It reports that once the project is profitable, 3 % of profits will go to Chiefdom Development Funds and that moreover a social project, focusing on health and education is planned. Any compensation is not sufficient to cover the costs of income lost on the land by community members (used land for profitable oil palm prior to the project).

Promised benefits for local communities

Comment on promised benefits for local communities
Quifel promised health care, and increased infrastructure, but those suffering from clearing of their lands have reported none of these have developments.

Materialized benefits for local communities

Comment on materialized benefits for local communities
Quifel promised health care, and increased infrastructure, but those suffering from clearing of their lands have reported none of these have developments.

Former land owner (not by constitution)

Former land owner
Private (smallholders)
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Cassava (Maniok), Mango, Oil Palm, Pineapple, Rice, Sugar Cane

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
Export destined for European market. One report states produce mainly for export.

Overall comment

Overall comment
The leased land is also rich in minerals – particularly bauxite, gold, diamonds and iron ore. An Australian mining company, Cape Lambert, currently holds an exploration lease on parts of the area for which Quifel holds surface rights

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

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