Relationship between Large-Scale Agricultural Investors and Local Communities: Lessons from Two Investments In Zambia

However, remaining realistic about what the investment can achieve and regular contacts to the community are equally important. The investor's approach to initial contacts can significantly impact the outcome of the project. Land issues in Zambia is a highly contentious topic. Even if investors target state land, this can lead to dissatisfaction among the local population. The potential for employment in commercial farms is often thought to be the primary benefit to local communities, but in reality, high mechanization and demand for qualified labor limit job opportunities for local communities. Outgrower schemes have the potential to include large parts of the local population, but they are a challenging endeavor in poor rural settings. It is recommended that investors link up with experienced partners to set up such schemes, including checks and balances for the investor. Investments are not positive in every regard, and trade-offs between socio-economic and environmental goals need to be communicated and negative effects mitigated. The agricultural sector in Zambia is dominated by small-scale farmers, despite the growing interest in its agricultural land and commercial investments. The debate on whether land deals trigger development or put the livelihood of local farmers at risk is ongoing. This study focuses on the interactions between investors and local communities, specifically in the context of two large-scale agricultural investments in Zambia. The two case studies, AmatheonAgri Zambia Ltd. and Chobe Agrivision, are located in the Central Province of Zambia and have been operational for the past five years. Both farms are large in size, build their farming operations on titled state land, and engage in corporate social responsibility activities. The study aims to generate insights into the diversity of interactions between investors and local communities and the associated challenges. The primary data was collected in the surroundings of both farms in October 2015, through in-depth interviews with farm management and stakeholders, as well as focus group discussions with smallholder farmers and outgrower farmers. The data was triangulated with findings from previous studies to ensure independence from the investor and government. The analysis of the data reveals several points of contact between investors and local communities, including initial contacts, farming operations, outgrower schemes, and investments in community infrastructure. The initial contacts between local communities and investors usually take place in the negotiation phase, often through community consultations that are considered inadequate or absent. However, the experiences of the two case studies differ, with Chobe having no community consultation and Amatheon engaging in negotiations with former landowners and squatters. The FGDs near Amatheon reveal different forms of initial contacts, including negotiations with former landowners, squatters, and community sensitization meetings. The investors' approach to initial contacts can significantly impact the outcome of the project, and regular contacts to the community are equally important. The study highlights the need for investors to engage with local communities in a more meaningful way, taking into account their concerns and needs. The study also emphasizes the importance of considering the socio-economic and environmental impacts of large-scale agricultural investments in Zambia. The trade-offs between these goals need to be communicated, and negative effects mitigated. The study provides evidence on the interactions between investors and local communities and derives several policy recommendations for investors and policymakers.