The food price spikes of 2007/8 showed just vulnerability of food importing nations in supporting its population. The Fluctuating fuel prices in the period 2007–09, urged companies to acquire land for the production of agro fuel or biofuel crops. The meltdown in international financial markets in late 2009 and subsequent recession caused investors to seek to invest in the more tangible asset of farmland, with the aim of having secure investment considering the rising demand for food and fuel.
Another reason why Africa’s land is being prone to grabbing is because the land is considered as cheap and almost free with governments willingly signing off these lands to buyers at highly insignificant commercial rates; again, with disregard to communities and individuals who own these lands.
Many of these land deals involve renewable leases for periods ranging from twenty-five to ninety-nine years, in return for small payments made to national, provincial or local government authorities. Sometimes once-off compensation for locals is included with promises of jobs. Yet after the land is acquired, enforcement of promises made remain a challenge, especially as investors’ choices about how and how much to invest are framed by factors far outside the control of host governments. A good example is the situation in Cameroon where Herackles Farms, a New York based investment firm is said to have acquired 73,000 hectares of land for palm oil production in the South West region of Cameroon in 2012 (according to a report by the Oakland Institute). However, according to the presidential decree granting Herackles this land, the company was expected to develop social facilities such as community schools, hospitals, health clinics, conduct environmental and social impact assessments in the new concession and pay land rents as stated in the presidential decree of November 2013. None of these were ever done as confirmed by SEFE (Struggle to Economize Future Environment) an organisation which has been investigating Herackles closely. Yet Herackles has still been operating in the area in clear violation of the laid down conditions in the presidential decree. Unfortunately, no significant action has been taken to address these outstanding issues.