Deal #3739

Location #1

Spatial accuracy level
Administrative region
Location
Nakonde, Zambia

Target country
Zambia

Location #2

Spatial accuracy level
Administrative region
Location
Isoka, Zambia

Target country
Zambia

Land area

Intended size (in ha)
300000
Size under contract (leased or purchased area, in ha)
[2011] 4000
Comment on land area
Intention was 300,000 ha, but they rejected a couple plots since these were too far from the TAZARA corridor. One data source states that the company is looking for land in excess of 700 000ha. The original MOU was for 80700ha (around 42,700 ha and 38,000 ha in the two chiefdoms) -- another report states 79300ha-- however the size under contract was still under negotiation. However, in 2011, with the change in political party from MMD to PF, the new president stated that an initial 4000ha would be allocated to the company (2000ha in each district), once the company was performing, the rest of the land would be handed over. The investment capacity was 2 million ha according to the Zambian company representative.

Intention of investment

Intention of investment
Biofuels
Comment on intention of investment
Originally only Jatropha. The investor diversified into sugarcane, sisal, cassava and sorghum for bioethanol and biodiesel from jatropha, soya, palm oil and caster.

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
A customary trust was set up, which leased out customary land to the company. While permits and other operational issues would be governed by statutory law, the customary body would retain its sovereignty over the land, and land rents (of around 6 US$/ha) would not be given to the government but to the Trust and purposed for community development.

Negotiation status

Negotiation status
[2009] Intended (Under negotiation)
[2011] Concluded (Contract signed)
[2011] Failed (Contract cancelled)
Comment on negotiation status
US$ 450 million biofuel project. By mid 2011, signed agreements has been obtained by Chiefs for 79300 ha. in 2011, with the change in political party from MMD to PF, the new president stated that an initial 4000ha would be allocated to the company (2000ha in each district), once the company was performing, the rest of the land would be handed over. The company rejected this stating that the land size was not big enough to justify the investment.

Implementation status

Implementation status
[2011] Project abandoned
Comment on implementation status
Phase one of the project was to commence immediately, including the setting up of biofuels feedstock plantations, construction of biofuels processing plants, construction of biomass power plants, and construction of local infrastructure. In response to the scale down of the land allocated to the company (now only 4000ha), the company pulled out of the country. The land offered in Zambia was inadequate to justify the investment required. Project many have been abandoned in 2012.

Leasing fees

Annual leasing fee
6
Annual leasing fee currency
US Dollar ($)
Annual leasing fee type
per ha
Comment on leasing fees
Around 6US$ per hectare

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Comment on contract farming
Cassava plantations

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
50000
Comment on jobs created (total)
50,000 job opportunities for both locals and foreigners (Chinese brought into Zambia)

Operating company

Comment on investment chain
Wuhan Kaidi majority shareholding.

 

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
Date
2009-03-14
Comment on data source
House of Chiefs: Tradition, Politics and Development-- The land is available

Data source #2

Data source type
Media report
File
Date
2011-07-14
Comment on data source
Lusaka Times- Nakonde investments cheer Chieftainess Nawaitwika

Data source #3

Data source type
Media report
File
Comment on data source
Aid Data -- Zambia, China JV signs biofuel project

Data source #4

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

Data source #5

Data source type
Media report
File
Date
2012-10-30
Comment on data source
The Post Online -- Sata asks Nawakwi to oversee bio-fuel investment

Data source #6

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

Data source #7

Data source type
Research Paper / Policy Report
File
Comment on data source
NAI Travel report. Land deals, and how not all states react the same: Zambia and the Chinese request PhD candidate Marie Widengård, Global Studies, Gothenburg University Field working Zambia,between December 2014 and February 2015

Data source #8

Data source type
Personal information
Date
2015-11-09
Includes in-country-verified information
Yes

Data source #9

Data source type
Media report
File
Date
2011-07-19
Comment on data source
Renewables: Wuhan Kaidi launches biomass energy project in Zambia- report

Data source #10

Data source type
Media report
File
Date
2012-04-27
Comment on data source
Farmland Grab- The Land Matrix: Much ado about Nothing

Data source #11

Data source type
Personal information
File
Date
2013-03-12

Data source #12

Data source type
Personal information
File
Comment on data source
Spreadsheet received from Martin Ostermeier

Consultation of local community

Comment on consultation of local community
Consultations were hold but the extent of Free, prior and informed consent is not known.

How did the community react?

Community reaction
Consent
Comment on community reaction
While the Chief had been willing to surrender customary land for the project, the involved chief expressed strong reluctance to alienate such large tract.

Displacement of people

Comment on displacement of people
No displacement was necessary. Only eighteen households resided within the designated area, and the company’s preference had been for people to remain on their land and work as farm labourers or watchmen. One community had expressed a preference to move and receive compensation.

Promised benefits for local communities

Comment on promised benefits for local communities
Community fund receives the land lease for community development.

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Marginal land

Detailed crop, animal and mineral information

Crops area
Cassava (Maniok), Castor Oil Plant, Jatropha, Oil Palm, Sisal, Sorghum, Soya Beans, Sugar Cane

Use of produce

Has export
Yes

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Processing plant

Water extraction envisaged

Water extraction envisaged
Yes

Overall comment

Overall comment
The original MOU was for 80700ha, however the size under contract was still under negotiation. However, in 2011, with the change in political party from MMD to PF, the new president stated that an initial 4000ha would be allocated to the company, once the company was performing, the rest of the land would be handed over. In response to the scale down of the land allocated to the company, the company pulled out of the country.

Nov. 18, 2016, 10:10 a.m.

overwritten

This version

Compare with previous version

July 28, 2016, 7:06 p.m.

overwritten

Show this version

Compare with previous version

June 1, 2016, 1:44 p.m.

overwritten

Show this version

Compare with previous version

May 4, 2016, 5:42 p.m.

overwritten

Show this version

Compare with previous version

Nov. 9, 2015, 5:35 p.m.

overwritten

Show this version

Compare with previous version

Oct. 26, 2015, 6:12 p.m.

overwritten

Show this version

Compare with previous version

July 7, 2014, 10:43 a.m.

overwritten

Show this version

Compare with previous version

March 17, 2014, 3:42 p.m.

overwritten

Show this version

Compare with previous version

July 8, 2013, 11:17 a.m.

overwritten

Show this version

Compare with previous version

May 27, 2013, 1:41 p.m.

overwritten

Show this version

Compare with previous version

May 27, 2013, 1:40 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.