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Harvard’s Foreign Farmland Investment Mess

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The university’s holdings in developing markets have proved to be more trouble than they’re worth.

Fourteen years ago, a Brazilian farmer named Ruthardo Grun says he was terrorized by armed thugs who shot at him, burned down his shack, and chased him from land he was preparing to farm. Little did he know his battle to get the property back would end up pitting him against a company controlled by the world’s richest school: Harvard University.

 The university’s endowment invested in the Brazilian company years after the events Grun describes. But a lawsuit Grun and five other farmers filed is just one of the long-running property conflicts Harvard inherited when it bet big on Brazilian agriculture almost a decade ago, accumulating vast tracts on the country’s impoverished northeastern frontier. The ongoing disputes include charges of so called land grabbing—the falsification of property titles and displacement of villagers—by companies Harvard later invested in. “I’d like to leave a piece of land to my four children, but I don’t know if it will be possible,” Grun says.
The South American mess shows the legal, financial, and reputational risks that Harvard faces because of its strategy of buying directly into developing markets. Most college endowments hire outside fund managers to spearhead such investments. Harvard Management Co., which oversees the university’s $37 billion endowment, instead bought properties through business partnerships that it formed with locals and controlled.

Over a decade, Harvard invested at least $1 billion in farmland, according to a just-released reportfrom the activist groups GRAIN, based in Barcelona, and the Network for Social Justice and Human Rights, based in Sao Paulo. The organizations came up with their estimate after a year-long investigation of tax returns and local property records, as well as on-the-ground interviews. Harvard’s holdings included vineyards in California, dairy farms in New Zealand, and operations producing cotton, soybeans, and sugar cane in countries such as Brazil, South Africa, Australia, Russia, and Ukraine, and totaled 854,000 hectares, though some assets have been sold.

In response to questions about its farmland holdings, Harvard says it considers the environmental and social implication of its endowment investments. The university said in a statement that it has “instituted a more proactive approach to working with managers of new and remaining assets—a partnership that provides more oversight and ensures that we can leave the land and community better than when we first invested.”

Narv Narvekar, the endowment’s chief executive officer hired from Columbia University in 2016 to overhaul operations, has retreated from direct investing. He’s spun out teams of managers overseeing assets from real estate to hedge funds, sending them to start their own businesses while investing with them. Yet Narvekar is still trying to hammer out the future of the troubled natural resources portfolio, even as he sells some investments, including the New Zealand dairy farm and a eucalyptus plantation in Uruguay.

Now, as a new school year begins, Harvard’s far-flung farmlands are facing criticism for, among other things, their impact on ancient burial grounds and impoverished populations. “Harvard’s farmland deals should be a cautionary tale for institutional investors,’’ writes Devlin Kuyek, a researcher at GRAIN, whose mission is to support small farmers and social movements in poorer countries.

Students, alumni, and environmentalists are targeting U.S. university endowments, saying their investing practices are often out of synch with schools’ professed values. These critics have pushed colleges to jettison stock in fossil fuel companies, private prisons, and companies that do business with Israel. Yale University’s investments in New Hampshire’s Great North Woods have drawn the school into disputes over clear-cutting and the development of a power line.

Silva produces a document that he says shows that his grandfather owned land in an area where titles have been disputed.
PHOTOGRAPHER: LIANNE MILTON FOR BLOOMBERG BUSINESSWEEK

Harvard initially made hefty profits on its land investments, including by buying and selling New Zealand timberlands in the 2000s. But returns fell as emerging markets faltered, and much of the team spearheading the strategy left the endowment in 2015. Last year, Harvard wrote down its natural resources portfolio, which includes timber as well as farmland, by $1.1 billion, to $2.9 billion. Over the decade ended June 30, 2017, Harvard’s investment portfolio returned 4.4 percent a year, among the worst of its peers. In Brazil, in particular, the endowment’s holdings suffered from the country’s recent economic meltdown and political turmoil.

The report, titled “Harvard’s Billion-Dollar Farmland Fiasco,” shows why such investments are so risky. It highlights property Harvard bought in Australia through a company called Wealthcheck Funds Management. According to a government inquiry, the company harmed an Aboriginal burial site when it dug irrigation canals for a cotton farm. It also details conflicts between RussellStone Group, which managed the endowment’s farms in South Africa, and black families that were granted rights to some sites to graze cattle and access burial sites. Neither company returned calls or emails seeking comment.

But Brazil may be the most contentious of Harvard’s overseas adventures. A public prosecutor’s office in the northeastern state of Bahia, for instance, has said that it may sue to reclaim some of the 140,000-hectare farm owned by Harvard-backed Caracol Agropecuaria after finding that titles for about two-thirds of the property are invalid. In its most recent tax filing, Harvard valued its interest in Caracol at $87 million. Elsewhere in Bahia, villagers have protested the property titles of a farm that was in part sold to Harvard-backed Gordian Bioenergy, according to the report. The endowment has been seeking to end its relationship with Gordian, which is developing farms to produce both crops and energy, though it still controls assets it acquired through the company.

Alberto Pereira da Silva (left) and Juvercino da Silva gaze at land where Alberto’s cattle graze.
PHOTOGRAPHER: LIANNE MILTON FOR BLOOMBERG BUSINESSWEEK

In the neighboring state of Piaui, a Harvard-controlled company called Sorotivo Agropecuaria has been battling with Grun and five other plaintiffs who say they lost their land in 2004. Earlier this year a judge dismissed the lawsuit and said Sorotivo could acquire a new title from the state for the 27,000-hectare farm it controls. However, in his decision he said that both the plaintiffs and Sorotivo practiced land-grabbing on title acquisitions. Accusations of land grabbing, which can date back decades, became epidemic as Brazil’s farm belt expanded and were often linked to speculators falsifying titles in order to steal and sell public property used by subsistence farmers.

The judge, Heliomar Rios Ferreira, says that the state agency from which the plaintiffs said they got their titles didn’t have any records of the grants. He also says Sorotivo improperly extended a boundary of its vast farm, though this was in an area unrelated to the lawsuit.

The plaintiffs’ lawyer says their property titles are legitimate and that they will appeal. Harvard controls Sorotivo through a Brazilian farming company called Insolo Agroindustrial, which didn’t return calls and emails seeking comment. A spokesman for Harvard declined to comment on the litigation.

Alberto Pereira da Silva watches over his cattle.
PHOTOGRAPHER: LIANNE MILTON FOR BLOOMBERG BUSINESSWEEK

While Grun relocated, people who for generations have made their home in the region known as the Cerrado are living with the consequences of the dispute. Eurotides Paulo da Silva resides in a village below Insolo’s vast farm, which stretches on for miles and miles and evokes a moonscape when it’s between harvest and seasonal plantings. His son works on the farm. But locals, who hunted and collected honey and medicinal plants on the plateaus, say their way of life has been hemmed in over the last decade with the arrival of industrial farms.

Silva produces a document dated from 1991 that he says shows his grandfather also owned land on the plateau. His cousin, Alberto Pereira da Silva, makes a similar claim, saying they never challenged the loss of the properties because they felt intimidated. Says the cousin: “We feel like we are trapped without a way out.” —With Lianne Milton

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MPs recover hundreds of land files hidden near Mukono land office

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Parliament’s Lands Committee has ordered a police investigation after recovering hundreds of land files allegedly hidden in shops and vehicle boots near the Mukono Zonal Land Office.

Parliament’s Committee on Lands, Housing and Urban Development has ordered a police investigation after recovering hundreds of land files allegedly hidden in shops and vehicle boots near the Mukono Zonal Land Office (MZO).

The committee, led by chairperson Edison Rugumayo, was inspecting the office as part of an inquiry into allegations of land fraud, delays in processing titles and other irregularities affecting land transactions in Mukono District.

During the inspection, legislators toured various departments and questioned staff about their work, including the handling and storage of land records.

At the office of Senior Staff Surveyor Steven Ndegeya, the committee raised concerns over alleged irregularities involving land titles reportedly created in wetlands and central forest reserves.

The legislators also questioned officials about more than 200 titles reportedly issued in Mabira Forest and demanded a list of people associated with the titles.

The committee was further alarmed after being told that more than 50 land titles had allegedly been created on the government-owned Njeru Stock Farm.

Rugumayo asked Ndegeya to provide the transaction trail, original title documents, geographical maps and details of all individuals holding titles on the land.

Ndegeya asked for more time, saying he needed to consult registrars before preparing an organised report.

He told the committee that there was no certificate of title for Njeru Stock Farm belonging to the Uganda Land Commission in the system.

However, he said the system contained records of individual Mailo landowners whose interests dated back many years, arguing that some people who obtained titles on the land had acquired them legally.

The committee later met MZO officials to establish the causes of the complaints and alleged irregularities.

Three staff members, Dan Kyalo, Hannifah Nantongo and Susan Aceru, were tasked with producing files that were allegedly being taken out of the MZO.

The three denied having moved the files.

However, accompanied by police officers, the committee recovered hundreds of titles allegedly stored in shops across the road from the land office. Other files were reportedly found in vehicle boots.

When questioned about who had instructed them to keep the files outside the office, the officials reportedly told the committee they had been directed by their supervisor, Ndegeya.

The committee also questioned the security team deployed by the Ministry of Lands in Kampala about how the files and titles had been removed from the office.

It emerged that Emma Otim, the security head, had left responsibility for keeping the office keys with a private security guard who routinely opens and closes the office.

The committee questioned why a guard whose primary responsibility was reportedly to man the gate had been entrusted with the office keys.

Principal Assistant Secretary at the MZO, Doreen Tumushabe, said she could not be held responsible for the alleged conduct of individual employees but promised to strengthen supervision.

Tumushabe also cited staff shortages, lack of vehicles and the large number of complaints involving allegedly forged land titles among the challenges affecting the office.

During the oversight visit, the committee also discovered hundreds of allegedly forged land titles at the MZO.

Officials told the committee that no related case had been opened at Mukono Police Station despite the alleged discovery of the forged titles.

The committee also heard complaints from members of the public who said they had waited for years to obtain land titles or have land disputes resolved.

A 75-year-old woman, Maria Nakitende, told the committee that she had waited for decades for authorities to resolve her title-related matter.

Hajji Musa Muliika of Katosi alleged that he was asked to pay Shs14 million after the title he had submitted was reportedly lost while in the hands of MZO officials.

Rugumayo directed police to conduct a thorough investigation into the circumstances surrounding the removal and concealment of the files and establish why they were taken outside the office, particularly ahead of the committee’s visit.

He also ordered the head of the Mukono land office to submit, within one week, a report on land titles in Mabira Forest and wetlands, as well as complaints against staff members.

Masaka legislator Joan Namutaawe criticised the quality of services at the land office and questioned whether Tumushabe was fully in control of operations at the MZO.

Namutaawe warned that the committee would pursue cases involving alleged illegal occupation and development in wetlands.

Source: nilepost.co.ug

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Uganda moves toward a Bamboo Policy to boost environmental conservation and green growth.

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By Witness Radio team.

 

Uganda’s move to develop a national bamboo policy aims to boost environmental conservation and create green jobs, addressing the country’s urgent unemployment issues among the working class.

 

Bamboo is a critical tool in fighting climate change due to its rapid growth, high carbon sequestration capacity, and ability to produce 35% more oxygen than equivalent trees. As a fast-growing, renewable resource, it restores degraded land, provides sustainable materials that replace emission-intensive products like concrete, and offers a resilient, low-carbon bioenergy source. 

 

Bamboo’s potential is outlined in the existing National Bamboo Strategy. Still, stakeholders stress that a formal policy involving entrepreneurs, farmers, and processors is essential to remove regulatory uncertainty and foster sector growth.

 

“The strategy is a good document, but it was developed largely through desk research. It did not fully involve entrepreneurs, farmers, and processors who are already working in the bamboo industry,” said Sjaak de Blois, chairman of Bamboo Uganda, encouraging stakeholders to see their role as vital.

 

The bamboo policy is currently at an early consultative stage, with no draft yet submitted to the cabinet or parliament. Recent consultations brought together representatives from eight government ministries, private-sector bamboo actors, and development partners to begin aligning the strategy with practical regulatory needs.

 

“What we have now is the starting point,” De Blois mentioned. “The next step is to take the strategy and make it more practical, more market-driven, and more Ugandan. The next step is to move from having a plan to adopting a policy.

 

Bamboo currently falls under several regulatory frameworks, with no single authority overseeing the sector. The policy push is being driven in part by Bamboo Uganda, a membership-based organization bringing together bamboo farmers and processors, among others. The organization aims to play a coordinating role similar to that historically played by the Uganda Coffee Development Authority in the coffee sector.

 

“If you want to make a sector meaningful for a country, you need coordination. Coffee became what it is because of an institution that aligned farmers, traders, exporters, and regulators. Bamboo needs the same kind of coordination.” He said.

 

The policy process is supported by the Belgian development agency, which is funding consultations and facilitating dialogue between the government and the private sector.

Industry players say the absence of clear regulations has constrained investment despite growing demand.

“At the moment, bamboo is everywhere and nowhere at the same time. As a farmer, you talk to forestry, as a charcoal producer, you talk to energy, as a builder, you talk to works. There is no single framework that enables the industry to function.” De Blois added.

 

Supporters of the policy argue that bamboo could play a significant role in environmental conservation. Bamboo grows rapidly, regenerates after harvesting, and can be harvested annually for decades, reducing pressure on natural forests.

 

According to Global Forest Watch (GFW), Uganda lost 1.2 million hectares of tree cover between 2001 and 2024, representing a 15% decline from the 2000 baseline. Bamboo has been identified as a key species for restoration.

 

“One acre of bamboo that is harvested sustainably can prevent the destruction of hundreds of acres of natural forest,” De Blois said. “If we get this right, bamboo can help reverse deforestation rather than contribute to it.”

 

Ms. Susan Kaikara, from the Ministry of Water and Environment, emphasized bamboo’s potential to drive Uganda’s green-growth agenda.

 

“Establishing a coherent national policy framework will strengthen coordination, inspire investment, and unlock bamboo’s full potential as a pillar of Uganda’s green economy,” she said.

 

Uganda’s charcoal market alone is estimated to be worth hundreds of millions of dollars annually, much of it supplied through unsustainable wood harvesting. Industry actors say certified bamboo charcoal plantations could offer a cleaner alternative.

 

“If they allow us to certify bamboo charcoal plantations, then we can get a trade license to compete or to work together with the existing market. We will reverse deforestation. We would enter an industry of about 500,000 hectares, creating smart, green jobs. We can digitalize them to make them attractive through bamboo agroforestry. So again, those things need a policy.” He adds.

 

Bamboo is also viewed as a climate-friendly crop due to its high capacity for carbon sequestration. Its rapid growth enables it to absorb large amounts of carbon dioxide, while its extensive root system improves soil structure and increases long-term carbon storage.

 

“When you look at carbon sequestration, bamboo offers several advantages. Residues from harvested bamboo can be converted into biochar, locking carbon into the soil for long periods. When you also see the sequestration per acre compared to many other trees, it is five or six times higher. So, we sequester a lot,” De Blois said

 

Stakeholders say that if the policy process progresses as planned, bamboo could emerge as one of Uganda’s key green growth sectors within the next decade.

 

“Policy making takes time. But what is important is that we have started the conversation with all the right ministries in the room. From here, it is about taking steady, practical steps.” He concluded.

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A Global Report reveals that Development Banks’ Accountability Systems are failing communities.

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By Witness Radio team.

For decades, development projects have been funded to address some of the World’s most pressing problems, including poverty, wildlife conservation, and climate change. However, what unfolds on the ground is sometimes the opposite of development. Instead of benefits, these projects have often harmed the very people they are supposed to support.

The effort to address such harm has led to the establishment of Independent Accountability Mechanisms (IAMs) by various development banks. Yet, communities affected by these projects often face betrayal by national court systems, leaving them feeling overlooked and vulnerable, emotions that underscore the urgent need for effective justice.

According to experts in development financing, since the early 1990s, development banks have sought to address and mitigate harm through IAMs—non-judicial grievance mechanisms that provide a direct avenue for impacted communities to raise concerns, engage with project implementers, and obtain remedies for the harm they have experienced.

The study, conducted by Accountability Counsel and titled Accountability in Action or Inaction? An Empirical Study of Remedy Delivery in Independent Accountability Mechanisms shows that while IAMs exist, their relevance has fallen short, underscoring the urgent need for reform to restore community trust and hope.

In compiling the report, researchers reviewed 2,270 complaints across 16 IAMs and conducted 45 interviews covering 25 cases globally.

The report reveals a persistent gap between the promise of remedies and their realization, highlighting that only 15% of closed complaints led to commitments, and just 10% achieved full completion, underscoring the urgent need for effective remedies for communities.

The findings highlight ongoing challenges, including inadequate implementation, limited monitoring, and persistent power imbalances, which continue to block communities from accessing meaningful remedies and demand immediate reform.

“The consequences of these institutional gaps are severe. As these cases show, institutional silence can exacerbate risk, while meaningful intervention can help de-escalate it.” The Report adds.

Uganda is among the countries where communities have sought justice using these accountability mechanisms. Between 2006 and 2010, communities in one of the districts of Uganda were brutally evicted by the UK-based Company, which was growing trees in the area.

The company was formerly an investee of the Agri-Vie Agribusiness Fund, a private equity fund supported by the International Finance Corporation (IFC), the private sector arm of the World Bank Group. The community filed a Complaint with the IFC’s accountability mechanism, the Compliance Advisor Ombudsman (CAO).

“We complained to this body in 2011, hoping for justice, but over 15 years later our people are still struggling, living miserably, some without homes,” a community land and environmental defender told the Witness Radio team.

According to the affected residents, the CAO process did not lead to success or meaningful compensation, as they had hoped.

Between 2013 and 2014, the communities, with support from the CAO, signed a final agreement with the Company to address the harm. Among other commitments, this included resettlement of the affected communities.

In its 28-page report published in 2015 titled: A Story of Community-Company Dispute Resolution in Uganda, the CAO wrote,” With the agreements concluded, implementation is gathering pace. As agreed, the company has begun extending development assistance to both cooperatives, and the process of restoring and enhancing livelihoods has commenced.

The first step taken by both cooperatives was to acquire land. In late 2013, the Mubende Cooperative bought 500 acres of ‘fertile agricultural land’ in the Mubende district. Their vision was to allocate a certain percentage of the land for resettlement, with the remainder utilized for farming projects.

Reports from the ground indicate that communities remain dissatisfied with the process, claiming it failed to address their concerns fully and highlighting the urgent need for more effective remedy systems.

“When you say that people are well, it is really a total lie. Many people were never compensated or resettled. Even those who got a portion of land say they have never seen a fertile land—I have never seen it, because people are living or cultivating on rocky, infertile lands,” the defender further revealed.

The struggle faced by the Ugandan community is not unique. Their experience mirrors what the Accountability Counsel report identifies worldwide. Despite registering more than 2000 complaints by communities harmed by bank-financed projects globally, there has been no comprehensive system-wide analysis of whether and how often these mechanisms deliver meaningful remedies, defined as tangible, material outcomes that repair harm and improve lives.

In addition to the slow success of such IAMs, the report notes that, across interviews covering 25 complaints, 84% referenced retaliation, violence, or threats of violence-an alarming indicator of the risks faced by communities seeking justice, demanding immediate attention and action.

“Government officials and company representatives were frequently implicated in efforts to suppress dissent. This not only reduces the likelihood of achieving a substantial remedy, but also suppresses the willingness of community members to speak honestly and openly about Complaint outcomes.” The report further adds,

Further, it reveals that communities described a range of retaliatory tactics, including physical clashes, arrests, detentions, fatalities, intimidation and harassment, death threats, and anonymous warning letters, among others.

“Remedy must be reimagined not as a peripheral concern but as a core responsibility of development institutions. It must be adequately resourced, independently monitored, and centered around the needs and voices of affected people,” the report adds.

The report recommends that development banks and IAMs establish a Remedy Framework with clear standards to ensure remedies are timely, adequate, and community-centered, and to encourage stakeholders to prioritize systemic reform for better justice outcomes.

The report also urges development banks and their accountability mechanisms to make remedies a foundational element of responsible finance. Adopting institutional frameworks that prioritize redress, empowering IAMs to oversee and enforce commitments, and incorporating the outcomes of IAM processes into project evaluations and institutional learning.

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