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Southern Sudan Sustainable Ag-For Fund: Human Rights and Profit in Sudan

Southern Sudan Sustainable Ag-For Fund: Human Rights and Profit in Sudan. Greg Carlson Sergio Ibarra Bolanos Justin Overdevest. The International Land Grab Story. Playing the Land Grab…. Since 2004, 6.5 million acres and growing…. Geographic Focus: Southern Sudan.

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Southern Sudan Sustainable Ag-For Fund: Human Rights and Profit in Sudan

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  1. Southern Sudan Sustainable Ag-For Fund: Human Rights and Profit in Sudan Greg Carlson Sergio Ibarra Bolanos Justin Overdevest

  2. The International Land Grab Story

  3. Playing the Land Grab… Since 2004, 6.5 million acres and growing…

  4. Geographic Focus: Southern Sudan • Human Rights & Potential Partnerships • Agricultural Opportunity: Ag Land + Potential • Changing Governance

  5. Opportunity: Crossing the Chasm • Land and Agriculture • Carbon • Water

  6. Market Opportunity • Focus: Long-term viability and sustenance of the land and its people rather than short term extraction • Inefficiencies • Market: this land grab strategy has inherent ecological, social, and political risk • Information: Both an inefficient as a market and lack of credible and important information. As well most land grab players have no ag experience

  7. Investment Vehicle: Starts with Structure • Local Mkt. % • Farmer Equity • + Community Impact • Agro-forestry Priority 1: Develop Land Trust Donations provide necessary capital for community members Investor funds go to accessing lands for agro-forestry products

  8. MFI Returns Model Builds off of Structure • Co-op Priority 2: Develop Returns Model Co-operative Formed in Community + MFI • non-MFI • Land Trust • MFI • Individual Farmers • non-MFI

  9. 2009: Southern Sudan Investment Promotion Act • For the first time, an Investment Authority has been established in Southern Sudan that provides “investment guarantees and incentives .” • Particular Investment Focus: Agriculture • “Indeed, the Southern Sudanese are very eager to attract investment and if a company comes with plans to invest, they will rarely be turned away.”

  10. Investors • Institutional: • Pension Funds (TIAA-CREF Global Microfinance Investment Program) • Socially-driven Funds (Threshold, Heirs Ltd., Root Capital) • Individuals • Foundations • Charitable Trusts

  11. Partners • NGOs – Coordination on the ground • Farm Africa (Rehabilitation of Agricultural Livelihoods in Southern Sudan) • Oxfam (Extensive history of NGO Collaboration to fight poverty and injustice) • USAID (FARM project: Agricultural infrastructure development in Southern Sudan) • MFIs – Local Financial Expertise • BRAC (Global Network) • SUMI (Sudan Microfinance Institution)

  12. Currency Spectrum Layered Structure Blending Investment Motivations and Financial Returns Impact First Financial First NGOs Charitable Trusts Foundations MFIs • Pension Funds • Banks • Impact Investors

  13. MFIs in Southern Sudan • World Bank: “Overall, the MFIs in Southern Sudan experience a low default rate. • But, only 1% coverage of potential market in Southern Sudan • Constraint to the provision of microfinance: Access to Funds

  14. Land Acquisition • Avg. Investment in Community Land = 271,000 ha • Avg. Investment in Government Land = 8,250 ha

  15. Land Availability • 58,337,800 ha of total available land • 3,785,000 ha of available land in Green Belt region • Large potential for responsible land investment

  16. Lease Structures • Lease periods : Some up to 99 years • Terms: • Yearly Payments (Green Resources) • Lump Sum (Eyat Oilfield Services) • Combinations w/ royalty deposits (Central Equatoria Teak)

  17. Target Structure • Work with communities AND involve government from onset • Strive for maximum possible lease • Examples • 99 yr. Lease of 179,000 ha • $12,500/yr. payments to local communities • Local Development Goals • Community and Government Engagement!

  18. The Co-op: Where to Plant

  19. The Co-op: Where to Plant

  20. The Co-op: Where to Plant

  21. The Co-op: What to Plant

  22. MFI: A Comparison

  23. Returns

  24. Agricultural Risk % Ag. Corruption

  25. Country Risk • Voiding of leases by government • Land disputes • Conflict • Community Opposition • Mitigation: Community and Government Involvement ; Partnerships are key!

  26. Impact: Environmental • Reduced land degradation through sustainable farming • Food and Natural Resource Security • Wildlife Preservation

  27. Impact: Societal • Community Land Protection • Avoided Landgrab and Community Displacement • Human Rights Assurance

  28. Impact: Economic • Local Economic Development • Labor-Intensive Farming • Thriving Agricultural Industry

  29. Moving the Needle • Potential impact is enormous: Sudan, Africa and the World • Bringing sustainable land management to post-CPA Southern Sudan • Developing a thriving economy not based solely on oil revenue • Scalability: 58 Million ha of available land with favorable investment climate

  30. Moving the Needle • “I urge investors worldwide to come and invest in Southern Sudan. In terms of agriculture, it will be the breadbasket of the region and the world.” • President SalvaKiir, Southern Sudan

  31. Sources • “The New Frontier: A baseline survey of large-scale land-based investments in Southern Sudan.” Norwegian People’s Aid, 2011. • “Expanding the Provision and Impact of Microfinance in Southern Sudan.” Melody Atil, World Bank, 2009. • “Government Woos Investors to South Sudan.” Juma John Stephen, 2009. www.gurtong.net. • Oxfam: http://www.oxfam.org.uk/resources/learning/landrights/intro.htmlhttp://www.oxfamblogs.org/fp2p/?p=4793 • International Land Coalition:http://www.commercialpressuresonland.org/research-papers/unravelling-land-grab-how-protect-livelihoods-poor • Bloomberg: http://www.bloomberg.com/news/2011-03-24/foreign-investors-grab-land-in-southern-sudan-norwegian-aid-group-says.html • Cotula, Lorenzo. Land Grab or Development Opportunity?: Agricultural Investment and International Land Deals in Africa. London: IIED, Food and Agricultural Organization. 2009. Print. • Green, Duncan. From Poverty to Power: How Active Citizens and Effective States Can Change the World. Oxford: Oxfam International, 2008. Print. • Yahoo News: South Sudan land grab threatens rights: report http://news.yahoo.com/s/afp/20110322/wl_africa_afp/sudansouthlandrights_20110322181349 • Farm Land Grab. “Jarch doubles its Sudanese empire” http://farmlandgrab.org/post/view/2960

  32. Sources (Cont.) • agricommodityprices: http://www.agricommodityprices.com/ • The 50 Top Microfinance Institutions, Forbes  http://www.forbes.com/2007/12/20/microfinance-philanthropy-credit-biz-cz_ms_1220microfinance_table.html • Microfinance Information Exchange http://www.mixmarket.org/ •  Agriculture.com http://www.agriculture.com/ • (2009). Expanding Agriculture and Food Security Activities in Southern Sudan. Juba, Sudan: United States Agency for International Development.  Retrieved May 15th, 2011, from http://pdf.usaid.gov/pdf_docs/PNADQ841.pdf. • World Corruption Index http://www.worldaudit.org/corruption.htm

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