New investment,old challenges. Land deals and the water constraint in African agriculture

Foreign investment in agricultural land acquisition in sub-Saharan Africa has been viewed primarily as driven by a set of linked ‘crises’: in financial capital markets, in security of energy and food supply, and in global environmental governance. This paper argues that a focus on the ‘buyers’ of land risks overlooking the dynamics that operate on the side of the land ‘sellers’. Accordingly, the first part of the paper argues that it is important to view the current ‘land grab’ as the latest stage in a longer historical process of competition for control of land and other natural resources by different ‘domestic’ economic and political actors within African countries. While such struggles are often characterised as the ‘state versus the peasantry’, with the state acting on behalf of ‘urban elites’, the paper argues that processes of accumulation and associated enclosure of natural resources need to be examined more critically in specific contexts if the role and impact of foreign capital investment are to be understood. The second part of the paper seeks to identify the ways in which questions of scale (in the sense of greater capital intensity) can be considered to be constraints to the development of African agriculture. Particularly, it considers the extent to which the production models most frequently mentioned in connection with foreign investment (large-scale mechanised farms and small-scale outgrower contract farming) respond to current productivity constraints. The paper argues that current debates about foreign investment in agricultural land underplay the importance of water resources needed to overcome production risks associated with irregular rainfall. Bringing the water dimension of land deals more clearly into focus is necessary if the scope for positive and negative impacts of new investment on existing land users is to be fully understood. The paper concludes by considering the implications of such challenges in the current context of foreign investment in agriculture in Africa.