Hedge funds accused of African land grab

(CNS): Hedge funds are behind "land grabs" in Africa to boost their profits in the food and biofuel sectors, a US think-tank says. In a report, the Oakland Institute said hedge funds and other foreign firms had acquired large swathes of African land, often without proper contracts. It said the acquisitions had displaced millions of small farmers. Foreign firms farm the land to consolidate their hold over global food markets, the report said. They also use land to "make room" for export commodities such as biofuels and cut flowers. "This is creating insecurity in the global food system that could be a much bigger threat than terrorism," the report said.

The Oakland Institute said it released its findings after studying land deals in Ethiopia, Tanzania, South Sudan, Sierra Leone, Mali and Mozambique. 

It said hedge funds and other speculators had, in 2009 alone, bought or leased nearly 60m hectares of land in Africa – an area the size of France.

“The same financial firms that drove us into a global recession by inflating the real estate bubble through risky financial manoeuvres are now doing the same with the world's food supply," the report said. It added that some firms obtained land after deals with gullible traditional leaders or corrupt government officials.

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