Analysis of impacts of large scale investments in agriculture on Africas water resources, ecosystems and livelihoods

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  1. 1. Analysis of impacts of large scale investments in agriculture on water resources, ecosystems and livelihoods Timothy Olalekan Williams Director, Africa International Water Management Institute (IWMI)
  2. 2. Outline of Presentation Introduction Study Objectives Methodology Results Key messages
  3. 3. The context
  4. 4. Potential positive outcomes Increased agricultural productivity leading to improved national food security and rural household incomes. Infusion of capital, technology and know-how. Increased employment. Improved social amenities.
  5. 5. Potential negative consequences Displacement of current land users Water pollution and river sedimentation
  6. 6. AMCOWs call for development of research-based policy options for effective management of land and water in large-scale agricultural land investments (LSALIs). UNEP, GRID-ARENDAL and FAO enlisted IWMI to conduct an analytical study to shed light on the potential and actual impacts of LSALIs. Study background
  7. 7. Study objectives Better understand the impacts of LSIA on Water resources, Ecosystems Livelihoods Provide recommendations on policy options for leasing agricultural land that takes water into consideration and that will lead to: Equitable distribution of benefits Protection of ecosystem services.
  8. 8. Methodology: A three-prong approach 1. A sub-continental level analysis of drivers, extent, characteristics and production activities of 148 LSALIs in 22 SSA countries, based on Land Matrix database. 1. A field-level, case study analysis of 3 LSALIs each in 6 countries: Ghana, Mali, Ethiopia, Tanzania, Mozambique and Zambia to examine the adequacy of policy and institutional frameworks for guiding and managing such investments. 2. A socio-hydrological simulation modeling exercise in Baro- Gilo basin in the Gambella region of Ethiopia to assess impacts of LSALI on water resources and evaluate trade-offs.
  9. 9. Key results at the pan-continental level
  10. 10. Based on the 148 LSALIs in 22 countries analyzed, a total area of approximately 3.4 million hectares was acquired across these countries during the period 2000- 2012. Ten countries accounted for 70% of this acquisition.
  11. 11. In 2000-12, ten countries accounted for 70% of LSLAs in SSA Area acquired in each of these countries > 100,000 ha
  12. 12. 15% 11% 9% 6% 5%4% 50% Ethiopia Mozambique Tanzania Ghana Mali Zambia Others (15%) (11%) (9%) (6%) (5%) (4%) (50%) Percentage distribution of total area of LSALI in SSA by country, 2000-2012
  13. 13. 0.00 10.00 20.00 30.00 40.00 50.00 60.00 1 000 - 10 000 10 000 - 50 000 50 000 - 100 000 > 100 000 %ofLSALIs Land area (ha) 39% 7% 4% Percentage distribution of LSALI by area (ha) in SSA, 2000-2012 50%
  14. 14. Total area under crop & livestock production activities on LSALI farms by country, 2000-2012 0 50000 100000 150000 200000 250000 300000 Area(ha) Countries Biofuel Food crop Livestock
  15. 15. Key results Detailed case studies
  16. 16. In all the 6 study countries, land and water are governed under separate but parallel policy, legal and institutional frameworks. Within each framework, multiple property rights regimes, including state property, customary property and private property, coexist and are operated simultaneously. 3. In Ghana and Zambia state and customary property rights regimes are recognized in land matters. In Ethiopia, Mali, Mozambique and Tanzania all land is vested in the state. Land and water governance
  17. 17. Main government organizations with key roles in L&WG for LSALI in Mozambique
  18. 18. Water access and use rights In Mali, Mozambique, Tanzania and Zambia water access and use rights are systematically included in LSALI contracts. The main requirements are for the investors to regularly pay water fees and to maintain secondary or tertiary canals. In Ghana and Ethiopia water rights are not often discussed at the time of land contract negotiation. In all 6 study countries, the volume of water to be extracted by LSALI is not usually specified and water pricing, where it exists, is not related to volume extracted.
  19. 19. Hydrological simulations Unintended and potentially damaging long-term consequences can occur, including - increased stream flow variations - groundwater recharge reduction - increased flood risk. These may jeopardize livelihoods and ecosystem services relied upon by other land and water users (e.g. fisherfolks, pastoralists etc.) living around the LSALIs.
  20. 20. Livelihood impacts Variable Ghana Mali Mozambique LSALI LSALI LSALI 1 2 3 1 2 3 1 2 3 Prior consultation No No No No No No No No No Displacement of current land users No Yes Yes Yes Yes No No No Yes Employment created No Limited Limited No No No Yes Limited Limited
  21. 21. Livelihood impacts Variable Ethiopia Tanzania Zambia LSALI LSALI LSALI 1 2 3 1 2 3 1 2 3 Prior consultation No No No Yes Yes Yes Yes No No Displacement of current land users Not known Yes Yes Yes Yes Yes No No No Employment created Not known Not Yet Not Yet Not Yet Yes NU Yes Yes BL Yes, BL Yes
  22. 22. Monitoring and assessment of impacts 6. In all 6 study countries the agencies charged with the responsibility of monitoring compliance with economic, social and environmental impacts and mitigation measures are poorly funded and lack the capacity to effectively perform their functions. 7. Parallel systems of land and water rights administration and management, poor cross- sectoral coordination of regulatory activities and inadequate capacity in relevant government agencies hampered effective and coordinated L&WG in all six study countries.
  23. 23. Actors/institutions typically involved in LSALI negotiations in Ghana
  24. 24. Seven Key messages: 0ptions for policy action
  25. 25. 1. Governments need to monitor and ensure that water availability, use and management is factored into (LSALI) contracts. 2. Water valuation is key to efficient and equitable water use and management. Governments have a key role to play in instituting frameworks and policies for implementation of practical and politically feasible water valuation systems. 3. Governments need to improve the coherence, complementarity and coordination of land, water and environmental policies
  26. 26. 4. Governments, through relevant national agencies, need to commission and conduct detailed assessment of the socio-hydrological implications of LSALI. 5. Investors need to adhere to the principles for responsible investment in agriculture and food systems, including adoption of inclusive business models. 6. Governments need to apply laws in the statute books to revoke land not utilized. 7. Governments and investors need to fully disclose information on LSALIs.
  27. 27. Thank you for your attention