Africa's Potential Beckoning
One dollar for one acre lease for 100 years
The future of agricultural productivity in Africa is both bright and controversial. Ethiopia is reported to be offering an acre of land just for $1 (yes, one US dollar) for a 100 year lease (June 26; The Hindu Business Line. In a separate report by McKinsey's Economic Research arm, agricultural productivity on the continent is set to increase from the current $280 billion to $880 billion by 2030 (25 June, Reuters). Africa’s combined GDP is projected to hit over 2.6 trillion dollars in the next 10 years.
The one–dollar-per-acre deal reminds me of a question that was put to Prime Minister Meles Zenawi of Ethiopia during the recent World Economic Forum held in Dar es Salaam. An Ethiopian participant sought to know why his government was leasing out thousands of acres to foreigners. The Premier, in a very calm voice replied that his government was simply leasing out idle land!
Idle land in Africa? Not a far fetched reply if you consider reports to the effect that Sub Sahara Africa has an estimated 395 million hectares of unused farmland (20 June, Next). Why are over 265 million Africans suffering malnutrition and 30% of the continent's population faced with starvation? Who is responsible? Is it the so called international community, African governments or the African person?
Africa's potential is growing as countries engage in strategic partnerships with foreign investors. As more positive news about the continent filter through to investors and businesses, individuals on the continent will get an opportunity to unlock their talents. The talk about idle land on the continent must get all people involved in the agricultural sector to rethink their strategies. A one-dollar-per-acre deal for 100 years lease could be a pointer to a government in desperate need of high productivity among its farming community.
James Shikwati
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