Abstract
Though a recent phenomenon, land grabs have generated considerable debate that remains highly polarized. In this debate, one view presents land deals as a path to sustainable and transformative rural development through capital accumulation, infrastructural development, technology transfer, and job creation while the alternative view sees land grabs as a new wave of neo-colonization, exploitation, and domination. The underlying argument, at least theoretically, is that international land deals unlock the much needed capital to accelerate the achievement of sustainable and transformative rural development in developing countries. It is against this backdrop that this paper examines the contribution of large scale land deals in Malawi to rural development by employing the political economy perspective using the Limphasa Sugar Corporation as a case study with particular focus on the nature and interest of the actors involved; the legal framework supporting large scale land deals; major individual and community benefits; and the extent to which these large land deals can indeed bring about sustainable and transformative rural development. The findings of this article demonstrate that large scale land deals present short term benefits to local communities such as capital for rural development; technology transfer and job creation in exchange for the priceless economic and social capital that local people depend upon; destruction of local social systems; deepening of local communities’ vulnerability to economic shocks; and the entrenchment of community dependence that may in the long run result in social and political unrest.
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Notes
Also referred to as Race for Africa or Scramble for Africa.
Dambo refers to a wide and low lying gently sloping treeless grass covered depression, which is seasonally waterlogged by seepage from surrounding high ground assisted by rainfall and has water tables for most part of the year in the upper 50–100 cm of the soil profile from which they drain into streams. Dambos have a polygenetic origin, but they are often essentially alluvial deposits and nearly always underlain by laterite at some depth (in some cases at considerable depth (FAO 1998).
Where formal irrigation should mean institutionalized irrigation with support from government or non-state actors whereas informal irrigation should mean individually or community-based irrigation initiatives.
There are several cases in Malawi where local chiefs are divided over whether the local land is productively utilised by the local people or not. Such cases are manifested by land conflicts tha are in Nkhotakota and Chikhwawa districts. .
Malawi has a total of 11.8 million hectares of which 9.8 million is land. Agricultural estates occupy 1.2 million hectares and the area potentially available for agriculture by small farmers is approximately 4.5 million hectares after adjusting for wetlands, steep slopes and traditional protected areas (Malawi National Land Policy 2000).
NSO (2008) put intercensal population growth for Nkhata-bay at 2.7 %.
A local investor, Napoleon Dzombe) is establishing a MK 500 million Ntalimanja sugar scheme in Nkhotakota with 200 hectares planted with sugarcane. A MK 21.7 billion sugar estate called Lifuwu Sugar Scheme is being established in Salima (Central Region of Malawi) by Saudi Arabia and Dubai investors (Jassi 2012).
Khanje (2009). Stability in Malawi to attract 75 Billion Malawi Kwacha in Malawi, Malawi, Daily Times, July 11, 2009.
During bad times, farmers produce 6 bags of rice per plot and sells it at 3.5 US$. Rice at Limphasa is cultivated twice a year.
Nkhata-bay hospital is 10 kms from the company.
Exchange rate is based on 2012 official Exchange Rate of 1 U$ to 350 Malawi Kwacha.
Interview with a local respondent, Chibaka village, 14 March 2012.
Intervie with a respondent from Matyewu village, 15 March 2012.
Interview with a respondent from Chapumbwa village, 13 March 2012.
Interview with a local farmer at Limphasa, 13 March 2012.
Interviews with academic members of staff from Chancellor College and Malawi Polytechnic on the reasons why Government is delaying in taking the Land Bill to Parliament for promulgation.
Land is flooded in the rainy season and support rice and a few maize cultivation.
Interview with a farmer, 13 March 2012.
Interview with the official at Limphasa Sugar Corporation, 14 March 2012.
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Chinsinga, B., Chasukwa, M. & Zuka, S.P. The Political Economy of Land Grabs in Malawi: Investigating the Contribution of Limphasa Sugar Corporation to Rural Development. J Agric Environ Ethics 26, 1065–1084 (2013). https://doi.org/10.1007/s10806-013-9445-z
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DOI: https://doi.org/10.1007/s10806-013-9445-z