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Tanzania: Govt On Spot Over Biofuel Production
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The Citizen (Dar es Salaam)
23 July 2008
Posted to the web 24 July 2008
More than 600,000 hectares of fertile land suitable for food production in the country have been hived off for the cultivation of bio-fuel crops, an independent study by a land use research organisation has revealed.
The revelation came even as the Government was put under pressure by MPs yesterday to halt the allocations and cancel those that have been made at the expense of food production.
The MPs warned of a looming land distribution and food supply crisis if the Government did not act fast to forestall what appears to be an unprecedented scramble for arable land by multinational companies out to cash in on the bio-fuel business boom occasioned by a global oil shortagel.
Kilwa MP Hasnain Dewji warned over reported 50-year exclusive leasing rights granted to a Netherlands-based company, Bio-Shape, for a pieces of fertile land in Mabiji, Migeregere, Nainokwe, Liwiti and Kiwawa areas in Kilwa to be used for jatropha cultivation.
The MP, who was contributing to the debate on the Ministry of Agriculture, Food Security and Cooperatives' budget on Tuesday evening, appealed that the Government intervene and halt the signing of the land lease contract with the investor.
"We should not let these investors have their own way without involving the local communities. We should be careful because in future we might experience the Zimbabwe land situation," the MP cautioned.
In an interview with The Citizen from Dodoma yesterday, Agriculture, Food Security and Cooperatives deputy minister David Mathayo said Government did not know the exact size of land that was already being used for the cultivation of bio-fuel crops.
According to the Dar es Salaam-based Land Research and Resources Institute, companies, most of them foreign, have been given nearly 641,170 hectares of land to be used for biofuel production.
The organisation's executive director, Mr Yefred Myenzi, said most of the companies got the land directly from villagers in one-sided negotiations and contracts, given the little capacity of village officfials to handle negotiations and correctly interpret the country's land use laws and regulations.
But Dr Mathayo said: "I will not say that the figure (over 500,000 hectares) is correct or not because some companies have directly obtained the land from village officials.
"It is a serious matter that district authorities have also allocated fertile land for bio-fuel while some companies reversed their original intentions to make the matter worse," said Dr Mathayo. He pointed out that the government has since banned such authorities from any allocation of land for bio-fuel use until further notice.
The minister said a team appointed by the Government to draw regulations to govern the new agro-industry would recommend on how to handle companies that have benefited illegally and are already in production. He said it was unfortunate that most of the reported companies were angling for fertile land that could be used for food production.
Still, according to the research report and interviews conducted by The Citizen, the picture that emerges is of a Government that is not in control or companies that have outwitted its agencies to benefit from the business.
The Tanzanian Investment Centre (TIC) was said to have granted licences to eight multinational companies to invest in biofuels production, according Energy and minerals minister William Ngeleja.
However, 30 other institutions handle biofuel related activities in the country, and TIC officials told The Citizen that despite receiving requests for land for biofuels production, it has only granted a few study cases and had not yet given out the said land.
MPs said the Government could not escape blame for entertaining long-term and binding contracts with some of the multinationals reportedly planning to inject up to $1.5 billion in the growing of bio-fuel crops despite the obvious risks.
"It's time the Government revoked the land given to an investor in the Usangu Plains who has already planted jatropha instead of rice," said Mr William Shellukindo (CCM - Bumbuli).
He said it was meaningless for the investor to be given the rich soil in the Usangu Plains to grow jatropha that will
yield bio-fuel instead of growing rice according to initial agreements.
"I understand that jatropha can be grown even in poor soils. Why should he use our rich soils aimlessly by giving us jatropha?" enquired Mr Shellukindo.
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His Mpanda Central counterpart, Mr Said Arfi echoed the same sentiments.
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