South Sudan: Africa’s next farming frontier

by Catherine Riungu

In yet another development that brings South Sudan closer to the East African Community, the country has become the newest state to join the regional agricultural research network.

The world’s newest country was recently unanimously accepted to become the 11th member of the Association for Strengthening Agricultural Research in East and Central Africa (Asareca) during its first general assembly that was held in Entebbe, Uganda.

According to Harvard professor, Calistous Juma, who gave the keynote address, South Sudan will play a key role in developing agriculture in the region by providing opportunities to apply the latest technologies on untested ground.

“South Sudan is lucky because it will get started with the latest and best agricultural technologies as it embarks on developing its economic base,” he said adding that since agriculture is the most viable industry the country can tap into and reap substantially because of being endowed with unfarmed soils and plenty of irrigation water from the Nile, it has potential to feed the region and generate more for selling into a food deficit world.

By an interesting coincidence, a young Sudanese researcher who is studying in Kenya at the Kenyatta University’s department of biotechnology Rashar Omer has made history by developing the first drought-resistant maize gene that was unveiled at the conference and named Asareca gene.

Slated for commercialisation in 2018, the gene is being touted by scientists who are excited by the breakthrough as having the potential to finally lead Africa to an agrarian revolution that has evaded the continent for decades.

The gene and the entry of South Sudan were not the only good news coming out of the Asareca assembly. The continent, known for shameful scenes of hunger, malnutrition and starvation is slowly emerging out of the jinx and headed towards becoming the world’s bread basket.

Experts say African scientists are coming up with continent specific research products while the political leadership that has for long shunned agriculture is beginning to lead from the front.

According to Asareca director general Seyfu Katema, 60 per cent of the world’s arable land is in Africa but the continent has failed to mine this potential due to low uptake of technology and poor leadership condemning it to perpetual food shortages.

In the middle of this darkness is emerging a flicker of light. Professor Juma, who is booking a place for himself among world leaders by crusading for a hunger-free Africa says four of the continent’s Heads of State are showing that with the right approach and a growing passion, it can be done.

“I am following and working very closely with presidents who are leading the way with incredible results, and it is their passion that is going to change Africa’s agriculture,” he says citing Guinea’s Lansana Conte, Malawi’s Mbingu wa Mutharika, Ghana’s John Atta Mills and closer home, Tanzania’s Jakaya Kikwete. “Never in the history of Africa have presidents taken agriculture so seriously as it is in these four countries with amazing results,” he added.

In Rwanda, President Paul Kagame directly supervises the Ministry of Agriculture.

The East African

South Sudan seeks food and farmland investments

South Sudan hopes to attract investors from Gulf Arab states, Israel, China and fellow African countries to boost production of basic food items, a government official said.

Created in July after a 2005 peace agreement with Khartoum, Africa's newest nation faces food shortages and grave economic challenges such as annual inflation at almost 80 percent in November.

Around 2.7 million South Sudanese will need food aid from next year as widespread violence and crop failures have hit hard farm production, according to the United Nations' food programme.

South Sudan has held talks with investors from Gulf Arab states, Israel, China, Uganda and the Netherlands to invite them to invest into agricultural production, said Elizabeth Manoa Majok, under-secretary in the ministry of commerce, industry and investment."The government has made food production the top priority...80 percent of South Sudan depend on agriculture," Majok said in an interview in the capital Juba.

"No serious commitment has been made so far....(but) interest of investors is big," she said.

South Sudan wants with the help of investors to increase production of basic food items such as sugar, rice, cereals and oilseeds, livestock as well as cotton, she said.

"We import everything, even tomatoes. We should produce this ourselves," Majok said. "We have the farmland, the resources."The government was preparing tenders to invite investors to revamp food factories damaged during the civil war and was also open to other partnerships such as farmland investments, she said without giving details.

Desert Gulf Arab countries have been trying to buy or lease farmland in Africa and Asia to secure food supplies but local famers have opposed such investments in some countries.Civil war waged for all but a few years since 1955 has left South Sudan with an almost complete lack of infrastructure and industry, aside from oil.

The country has few paved roads outside Juba and large parts become inaccessible by ground transport during the rainy season. Often described as one of the world's least-developed nations, it has high levels of poverty, illiteracy and maternal mortality rates. Hospitals and schools are scarce.South Sudan is also under pressure to diversify its economy away from oil generating 98 percent of state revenues.

Oil reserves will halve by 2020 if no new finds are made, according to the International Monetary Funds (IMF).

To facilitate trade with East African countries such as Uganda and Kenya the government is considering setting up free trade zones in border areas, Majok said."Consultants are doing a study on free zones. We haven't announced it yet," she said.

Landlocked South Sudan depends for most of its needs on imports which are driving up inflation.

Roads to Uganda and Kenya are poor and tensions with Khartoum have disrupted supplies from the north.

BRecorder

South Sudan: land ownership a major challenge for investors

by Shadia Basheri

The Sudanese Businessmen & Employers Union (SBEU) is one of the organizations on which the Sudanese government greatly depends in its endeavor to promote the Sudanese national economy and boost development.

The SBEU's mission has become more and more important, particularly in light of the economic changes that are taking place in the country following the secession of South Sudan. These changes have greatly affected the economic structure of the country.

Accordingly, SBEU has earnestly embarked upon the mission by presenting proposals to the government for solving the economic difficulties the country is facing following recent announcement by the government that SBEU will take up the role of managing investment in the country.

In order to shed light on the activities of SBEU, particularly those to be undertaken by it in the coming phase, Sudan Vision interviewed SBUE secretary-general, Bakri Yousif Omer as follows:

Q: We have noticed that foreign investment is focusing on the service sector. Why is that?

A: As a matter of fact after petroleum, investment on the service sector is among those the government is targeting. For example, agricultural investments are bigger and have many benefits.

As you know agricultural investment in Sudan is very little and is not sufficient for achieving food security. This is why SBEU has always been calling for more of it since Sudan has vast fertile agricultural lands.

Q: What are the most important issues of agricultural investments that the government has to deal with?

A: The problem of ownership of land is one of the biggest issues that face agricultural investment in the county. However, the Higher Council for Investment (HCI) has started to look into this matter to find a solution to it. We must have a vision regarding agricultural investments. Foreign and local investors should mark their contribution in the region and show can they address the positive social impact of investments.

Q: Has SBEU ever participated in international or regional conferences?

A: SBEU has contributed to many conferences and meetings. As you may know, the Islamic Chamber of Commerce (ICC) has created a body called Business Employers which is located in Pakistan. In addition, we have participated at a conference in the State of Qatar on December 2 in which young people participated. Moreover, Islamic chambers of commerce have many important projects.

For example, there is a proposal for a railway project that links some African countries to Port Sudan that passes through Darfur. This proposal has been submitted by Sheikh Kamil.

Also Turkey has Africa bridge project and the African-Turkish Relations Forum. Internally, we have launched a Diplomacy Day for ambassadors accredited to Khartoum.

Moreover, SBEU has participated in many conferences, meetings and seminars through the Council of Arab Chambers of Industry, Commerce, and Agriculture and SBEU is represented in its board of directors. We are also active in this.

In addition, we are members of the Arab Businessmen federation as well as the Arab European Chamber s board. At the African level, we are members of the COMESA and IGAD.

Q: Has the COMESA made things easier for Sudanese businessmen with respect to exports and imports and what problems do you face?

A: As a matter of fact we are no more isolated. It is important for any country to join regional blocs.

At this stage of history and in light of the new millennium, Arab countries have realized the importance of joining African blocs, such as the Arab Free Trade Region and COMESA.

Yes, in any economic activity there are negative and positive sides. On the negative side, you have the removal of custom duties that are negatively reflected on local industry.

For example, Sudan has got plenty of natural resources for manufacturing but despite that we import. An example of this is that tea and coffee are amongst these imports and so COMESA affects commodities.

As regards problems that we face is that we suffer from the similarity of our productions which affect the COMESA market. In addition, poor roads greatly affect the economy and hence the government should reduce transportation fees since all industries in the COMESA region are still young.

Q: SBEU has recently held many meetings, such as those with Council of Arab Chambers of Industry, Commerce and Agriculture as well as Islamic Chambers of Commerce and Industry Boards. What is the purpose of these meetings?

A: All these meetings have been sponsored by the President of the Republic and in these meetings; many papers were presented relating to investment opportunities and transparency.

We still receive thanks and appreciations from Arab and foreign chambers of commerce and this will contribute to the boosting of investment in Sudan.

In addition, papers on agricultural investment opportunities in Sudan for achieving Arab Security have been presented.

Q: What are the most important problems that face the Union?

A: There are many economic problems, such as financing policies. For example we are aware of government initiatives and we are waiting for these initiatives to be implemented on the ground. You know we work hand in hand with the government.

Q: Are there any joint investment cooperation with the State of South Sudan following secession?

A: We have agreed with the State of South Sudan before secession that we form a strategic partnership which we called smart partnership.

We have presented our vision so that the relation would be fabulous whether South Sudan seceded or not.

We have taken on board banks and presented initiatives but the general atmosphere needed an economic force and we must build good relationship in order to remove all obstacles, particularly in the light of the need of South Sudan for commodities.

Q: We want to know what have your union contributed to the civil society?

A: We have many contributions as I mentioned in Darfur and in the capital, for example our contribution to Ibrahim Malik and Ahmed Kasim Hospital. In addition, we have contributed to political parties and provided great support to various bodies.

Q: What type of relation do you have with Investment Commission?

A: The commission has been established at the state level and it came about in implementation of the federal system according to Naivasha peace agreement.

Q: What is your role in securing the lives of businessmen?

A: Since our meeting with Dr. Garang in 2005, he called on businessmen to work in an institutionalized way for ensuring investment in the South. At that time, finance was being provided by the government South Sudan. We agreed and held two forums but our activities were suspended.

Had such policy been implemented it would have had great impact. We must represent such initiative to the government of Sudan.

Q: What else do you want to say?

A: I would like to thank Sudan Vision for its covering of our activities and for being engaged in all issues that take place in the Union.

Sudan Vision

South Sudanese fear impact of farming deals

by Katrina Manson

When farmers start to plant chickpeas in a remote spot of South Sudan this month, they may well sow the seeds of a backlash.

South Sudan seceded from the north in July and this Egyptian-run plantation is the most advanced of several farming deals decried as “land grabs” in the world’s newest nation.

Foreign investors are buying and leasing land across east Africa to grow, for export, cereals, vegetables and crops for biofuels. Campaign groups say food-for-export schemes will displace people and degrade the environment, ultimately increasing conflict in fragile regions.

Egyptian private equity firm Citadel Capital, which has leased 259,500 acres for farming in oil-rich Unity state, is among dozens of foreign entities to have struck large land deals in the new country for everything from forestry to tourism. Many such deals were struck before independence. Agreements made since 2007 amount to 9 per cent of South Sudan’s land, at 5.74m hectares, says a report this year by Norwegian People’s Aid.

Citadel managing director Karim Sadek admits the mechanised farm, near state governor Taban Deng’s hometown 45 kilometres from the state capital, is “not a heavy employer.” Most of its 60 or so employees are Zimbabwean. But he denied that the deal was exploitative and said the food would be sold locally. “The big bad wolf theory – the land-grab proposition – I don’t see it applying,” he said.

He said the government of South Sudan had approved the deal and Citadel would pay the state government $125,000 a year for its 30-year lease. “We’re not owning the land; this is a rental. We have produced a sizeable investment so far that will be seen in the field, and the plan is for this project to sell locally.”

The plantation has, to date, provided little local employment, with the 60 or so staff mostly Zimbabwean. Mr Sadek said Citadel subsidiaries had invested $24m, mostly on equipment, and hoped to scale up planting from the 1,500-acre trial of chickpeas this year to 130,000 acres after five years. Citadel would also plant maize and sorghum and introduce on-site processing, such as milling, to add value.

“Our plan is to slowly fill up the demand gap, replacing imports [by] a much cheaper proposition,” said Mr Sadek.

Local production would lower costs, he added. Imported maize was selling for $1,000 a tonne, more than three times the international market price, he said. Given the size of Citadel’s plantation, it could meet local demand for maize and still export.

Land deals agreed by Citadel and others are complicated by the scale of the challenge faced by the new country. Fighting continues along the border and this year the north blockaded deliveries to the south, delaying maize planting.

South Sudan is struggling to deliver benefits to those who spent decades fighting the north in pursuit of independence gained on July 9.

It wants to diversify an economy that derives 98 per cent of revenues from oil. At the same time it needs to subdue local militias and feed an army that soaks up 40 per cent of state spending.

Citadel plans to negotiate local food sales directly with the government, which, critics say, could mean maize is diverted to feed soldiers, not civilians.

“People didn’t fight Khartoum [the north] only to lose their land,” said Anuradha Mittal, executive director of Oakland Institute, a think-tank, who has visited the Citadel site and will next month report on the impact of land deals.

She fears that some land licences had been acquired as a conduit to explore for oil and minerals. “It’s very important to halt and step back, [to] protect the valuable resources of the country instead of having these free-riders who are rushing in,” Ms Mittal said.

Some foreign investors have found South Sudan a difficult environment. Jarch Capital of the US struck a deal for 800,000 hectares, which, lacking government approval, has stalled.

It may require a battle for land in South Sudan to stay locally owned, according to Ms Mittal. “The communities say they’ll chase [foreign interests] away or there’ll be conflict.”

Investors such as Citadel argue that they offer an opportunity South Sudan should not ignore. Mr Sadek said the country would lose out if virgin land were not developed. “This is not the Riviera,” he said. “We’re not talking about real estate value here; we’re talking about productivity.

“The land can remain as it is for the next 200 years, producing nothing. Or you go in and risk money and produce – and for that you need to be rewarded.”

Financial Times

South Sudan holds its first agricultural trade fair

Aiming to explore farming possibilities and draw investors, South Sudan held its first agricultural trade fair at Nyakuron Cultural Centre in the capital Juba from 9 to 12 November.

Initiated by South Sudan Ministry of Agriculture and Forestry, with support from the UN Development Programme, the event invited investors to support food production in minimizing the country’s overdependence on imported products.

Gabriel Dankyi, project manager for the Adventist Development and Relief Agency (ADRA)-supported Food Security and Agriculture project, was upbeat about the trade fair.

“If we are able to position ourselves very well, it should be possible for us as a country not only to feed ourselves ...but also use the surplus for export,” Mr. Dankyi said.

Commenting on the fair’s vast array of products, he added that it had given people a new outlook on the potential for agriculture in the country.

Samuel John Awok, Director General in the Upper Nile Ministry of Agriculture and Forestry, said the fair was important in giving citizens a chance to sell their products to the world.

He noted that Upper Nile could produce food as well as cash crops like Gum Africa (sister to Gum Arabic), castor beans (the source of castor oil), sim-sim (to produce vegetable oil), cotton, and sunflowers, adding that it was time all citizens put their heads together to develop the agricultural sector.

“South Sudan should be seen in the world market as an exporter of agricultural products, not oil, because agriculture is a renewable resource,” he said.

Mr. Awok advised all South Sudanese to make food production a top priority if hunger were to be minimized in the new country.

Peace Moite, marketing director for Afroganics Company, a South Sudanese company based in Juba, said the show had given her an opportunity to network with farmers.

According to Mane Sauver, coordinator for the World Food Programme’s Purchase for Progress pilot project in Juba, WFP was importing tens of thousands of metric tons of food to distribute to beneficiaries.

He said his project was aimed at reversing this import trend by supporting local farming communities and buying food locally for WFP pipelines, which had been made possible by the trade fair.

The fair was attended representatives of government institutions, UN agencies, non-governmental organizations and private businesses.

UN

Negative publicity reportedly halts U.S. land deal in South Sudan

The U.S. based Oakland Institute and local activists in South Sudan have effectively stalled plans for the largest land deal in the area.

Anuradha Mittal, Executive Director of the Oakland Institute, who returned last week from South Sudan, announced a major win for local leaders and senior government officials opposed to the unfair and exploitive land investment deal of the Texas-based Nile Trading & Development, Inc. (NTD).

OI's Brief on the land investment deal of Nile Trading & Development, Inc. (NTD) in South Sudan exposed the largest land deal in the country and made the contract available on the Institute's website. The details of NTD's 49-year lease of 600,000 hectares -- nearly 1.5 million acres, with a possibility of almost 1 million acres more -- for USD 25,000, include unencumbered rights to exploit all natural resources in the leased land.

Following OI's Brief and the resulting media coverage, the community of Mukaya Payam in Lainya County, Central Equatoria State (CES), was made aware of the deal and mobilized against it. The traditional and senior government leaders including county authorities launched a joint protest in July 2011, rejecting the lease to American investors.

In early August, a committee comprised of the Payam Parliamentarians in the CES Legislative Assembly, Payam Chiefs, and senior government officials at the state level traveled to Juba to voice their concerns to the state governor and the President of the Republic of South Sudan, H.E Salva Kiir.

Their message: "We the chiefs, elders, religious leaders, and the youth of Mukaya Payam unanimously with strong terms condemn, disavow, or deny the land lease agreement reached on 11 March 2008 between the two parties."

Response of President Kiir to the community: "This issue has to be addressed according to your will. You are the government and you have powers."

Oakland Institute

New nation of Southern Sudan seeks to develop agriculture

by Cathy Majtenyi

During more than two decades of war, the people of southern Sudan relied heavily on food aid brought in by foreign aid agencies. Following the signing of the north-south peace agreement, and on the eve of South Sudan’s independence, the focus is now shifting from providing emergency food relief to developing long-term agricultural policies.

People here have long needed emergency food aid to survive. Civil war plagued Sudan for two decades, before a peace agreement in 2005 ended the fighting between north and south. Then a referendum earlier this year brought southern independence. South Sudan becomes the world’s newest country July 9.

And agricultural is the new government's top priority.

The U.N.’s Food and Agriculture Organization and the government are monitoring food production, rainfall and other trends.

Government officials say only four per cent of SouthSudan is farmed, yielding around 700,000 metric tons of cereals a year.

Undersecretary of Agriculture Beda Machar Deng wants to change that. “The Ministry of Agriculture is aiming by year 2011, the food production will be at least 1.2 million metric tons, that could be able to feed the farming population that we have," he said.

Deng says his ministry is encouraging farmers to move beyond subsistence farming.

But South Sudan's limited number of all-weather roads presents a problem. Cattle rustling and banditry also are problems.

As are the remnants of war, said Undersecretary Deng. “Even up to now, the mines are taking tractors, up to now the mines are taking people, up to now the mines are also blowing up cattle in the farms. The mines are still there, so the population is still fearing," he said.

But, Deng says he still thinks that with the right planning and support South Sudan can be become Africa's breadbasket.

VOA News

Investors in scramble for South Sudan’s fertile land

by Mwaura Kimani

Southern Sudan...Africa’s latest independent state...revelations that foreign investors are quickly chalking up huge tracts of fertile land in the country.

A report by the Norwegian People’s Aid (NPA), shows foreign and domestic companies have acquired large amounts of rural land through leases with communities and government institutions — at least a tenth of Southern Sudan. This is exposing the country to possible food problems and conflict in the coming years even as reconstruction gains a footing, security analysts and humanitarian organisations warned.

Over the past four years, foreign interests sought or acquired 2.64 million hectares (26,400 sq km) in the agriculture, forestry and biofuel sectors alone — an area that is larger than the whole of Rwanda.

Add to that domestic investments in tourism and conservation, some of which date back to the pre-war period, and the figure shoots to 5.74 million hectares (57,400 sq km), or nine per cent of South Sudan’s total land area, shows the report by NPA.

Experts are warning that while the investments provide the much-needed impetus to the post-conflict reconstruction efforts, they risk becoming sources of food insecurity, instability, social unrest and conflict.

Like in many African countries, land is usually an emotive issue, a fact NPA says could turn tragic for Sudan which is still reeling from years of conflict, and the legal ambiguity of the transitional period. In the past few years, massive amounts of land in Africa have been bought by foreign organisations especially in countries like Ethiopia, Tanzania, Sierra Leone, Mali and Mozambique.

As a solution, experts suggested South Sudan should put a moratorium on large-scale land acquisitions until stability is achieved.


“Since most investment projects are not yet operational, Southern Sudanese are not yet feeling their impact in any tangible way. As a result, most Southern Sudanese are still very eager to attract investment and may not fully appreciate the costs in doing so,” said researchers at NPA.

''Therefore, the government should conduct a review of existing investment agreements to ensure that they have followed the appropriate procedures. This review should ensure that leases comply with the terms of the Land Act, the Investment Promotion Act, and the Local Government Act with respect to the length of investments, the need to consult with affected communities prior to making decisions concerning land allocation, and the conduct of environmental and social impact assessments (ESIAs) before issuing leases,” said the NPA researchers.

full article...The East African