New and interrelated facets of land acquisition : the case of the Chinese investments in South Africa

Abstract

This research aimed contribute to the understanding of investments directed to agriculture and land by investigating three new and interrelated facets related to land acquisitions, based on the China South Africa Agricultural Demonstration Centre as a case study. These new and interrelated facets are: i) land acquisitions are increasingly occurring in order to gain access to other natural resources rather than purely the land itself, ii) land deals are increasingly „invisible‟ and iii) land acquisitions are increasingly occurring in developed and emerging economies. This research confirmed the increasingly „invisible‟ nature of land deals as they often include a production control element (not making it necessary to acquire the land and/or other resources directly). It also showed that developing and emerging economies are becoming ever more targeted as these countries present more secure investment environments (land security, respect of property rights) and can act as stepping stones into other countries and sectors. Finally, although the hypothesis regarding natural resources could not be confirmed, the mandates of demonstration centres need to be critically assessed to determine whether the project objectives act as a disguise for a natural resource grab. Taking these facets into account, the current land acquisition definition is potentially too limited. China‟s (and other investors‟) engagement in African agriculture is a multi-faceted rapidly evolving phenomenon, involving a complex array of actors, which cannot be represented by a single strategy. Ultimately it is dependent on the Chinese aid recipient countries, like South Africa, to negotiate foreign direct investment into agriculture (and other sectors) and to shape and re-model the engagement into agricultural development, in order to benefit the local communities and minimise the environmental and social impacts thereof.