$300 million | Some oppose Sichuan province’s plan to buy land and build infrastructure
KAMPALA, Uganda (Reuters) — China’s Sichuan province is in talks to invest $300 million in cotton, rice and fruit production in Uganda, a senior Ugandan official says.
Most farming in Africa’s biggest coffee exporter is at subsistence level and rain-fed. Big commercial production is hobbled by a lack of capital, expertise and supporting economic infrastructure.
The Ugandan government was helping Sichuan’s agricultural de-partment acquire land for a project involving private landowners, said Okasai Opolot the commissioner for crop resources in the agriculture ministry.
“They have committed to invest $300 million in five years but immediately what’s available is $60 million,” he said.
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“They’re establishing an agricultural production and industrial park, which will involve developing the whole value chain of cotton, rice and fruits.”
Foreign investment in African agriculture has stoked controversy in the past, with critics saying foreign “land grabs” drive rural populations away from livelihoods and hinder Africa’s efforts to alleviate hunger.
Investors say deals expand production of unused land and boost efficiency and resources.
The Ugandan project would need 15,000 acres of land, and private Ugandan landowners could choose to lease land to Chinese investors or enter equity partnerships, Okasai said.
Uganda was once Africa’s largest cotton producer, but political turmoil in the 1970s saw production drop steeply. Production has started to edge up again with greater political stability.
Cotton, mostly grown in the country’s east and northern regions, still suffers from bouts of harsh weather, a lack of investment and government neglect, growers say.
