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Opinion: Why is IFC contributing to poverty in Guinea?

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While most of the world was sheltering in place due to the COVID-19 pandemic in March, a hundred families were uprooted from their lush, centuries-old village in western Guinea and relocated to a barren hilltop to make way for a sprawling bauxite mine, backed by the International Finance Corporation.

Residents of the Hamdallaye village say the Compagnie des Bauxites de Guinée, or CBG, moved them to an unfinished resettlement site that lacks adequate housing, water, and arable land to replace the farmland that the company has taken from them over the past decade.

Three months later, World Bank President David Malpass responded to the Black Lives Matter movement by committing to tackle racial injustice and inequality, including within the World Bank Group. A banner reading “#EndRacism” was draped across the façade of the bank’s headquarters in Washington.

If these words are to be more than just a hashtag, the bank should take a hard look at how it is deepening inequality by contributing to the plunder of African resources, at the expense of African lives, to help some of the wealthiest corporations accumulate more wealth.

One of the world’s largest bauxite miners, CBG is a joint venture of the Guinean government and three multinational mining companies — Rio Tinto, Alcoa, and Dadco — and supplies the raw material for aluminum in an array of consumer products, from Ford trucks and BMW luxury cars to Campbell’s soup and Coca-Cola cans.

In 2016, the company received a package of loans estimated at $795 million from IFC, the U.S. Overseas Private Investment Corporation, and a syndicate of commercial banks to expand its bauxite production. The German government guaranteed a portion of the financing through its untied loan guarantees program.

Last year, the residents of Hamdallaye joined 12 other villages in filing a complaint with IFC’s independent watchdog, the Compliance Advisor Ombudsman, or CAO, saying CBG had grabbed their ancestral land, polluted their water sources, and caused long-term damage to their livelihoods with IFC’s acquiescence.

The company responded to the complaint, as well as others, by saying that it has adopted and adhered to IFC’s environmental and social performance standards over the past four years but that it “wishes to learn more about the concerns expressed in the complaint and initiate a process to resolve the disputes with the Complainants.”

The communities and the company were scheduled to begin mediations in April 2020 under the auspices of CAO. The people of Hamdallaye expected to have this opportunity to negotiate their resettlement terms on a fair footing. Mediations were postponed due to the coronavirus pandemic, yet CBG plowed ahead with the resettlement of the village regardless. The company has since issued a statement about this.

To help Hamdallaye and the other communities prepare for mediations, my organization, Inclusive Development International, supported them to conduct a participatory mapping exercise and to analyze Earth observation data from 1974 to 2019. This mapping documented and geolocated the impacts of CBG’s operations on 17 villages.

The results were staggering, suggesting that the residents of these villages — which make up only a small fraction of the roughly 230 villages affected by CBG’s expansion — collectively lost more than 100 water sources and more than 80 square kilometers of cropland to CBG’s mining activities. The company has yet to pay a cent in compensation for this land.

What’s worse, CBG is not rehabilitating most of the land it exploited. Bauxite mining strips vast areas of fertile topsoil to access the minerals underneath, creating “dead zones” that are useless for agriculture without proper rehabilitation. An analysis of satellite imagery indicates that over the lifetime of the mine, the company has rehabilitated only about 10% of the land that it has exploited, and large portions have been re-mined since the IFC-backed expansion began in 2016.

The land that CBG and other bauxite miners are destroying underpins the economic and food security of some 400,000 farmers in the Boké region. Far from bringing development to this corner of West Africa, this investment threatens to cause impoverishment on a massive scale.

So why is a member of the World Bank Group, along with the U.S. and German governments, fostering poverty in what is already one of the world’s poorest nations?

The project backers said that CBG’s expansion would benefit social development and stimulate economic growth in Boké. IFC acknowledged the investment’s significant risks but justified them on the basis of the environmental and social “additionality” that it would bring, pledging to “support the Company in areas such as biodiversity, resettlement and water management.” The loan package is predicated on CBG’s commitment to comply with its environmental and social performance standards.

CBG has not only failed to acknowledge and redress its 30-year legacy of harm, but it is still not complying with IFC’s standards as it expands its operations over vast new areas of land. That is not just our analysis but also the conclusion of the project’s independent environmental and social monitor.

CBG’s unwillingness to remediate and avoid further harm may have been tolerated by the lenders so far, but it is causing enormous frustration among the local population. In 2017, Boké saw large-scale riots by thousands of young people protesting bauxite mining in the region, resulting in multiple deaths of protestors at the hands of security forces. The protesters weren’t saying no to mining; they were simply demanding a fair share of the benefits.

CBG’s multinational owners do not actually need IFC’s advice on how to mine bauxite more responsibly. After a lengthy legal battle, Rio Tinto reached an agreement with Indigenous landowners to lease the site of its Gove mine in Australia’s Northern Territory. Rio agreed to pay the communities between $15 million and $18 million a year in rent over a 42-year period, along with a range of other development and employment benefits.

The people of Guinea deserve nothing less. And we expect no less from a “development” project that has benefited greatly from the largesse of our public tax dollars.

 Original Post: Devex

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Wars are disrupting food systems, and ending world hunger requires urgent global action, experts say.

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By the Witness Radio team.

Conflicts far from the world’s farms are reshaping how food is produced, traded, and accessed. Rising energy costs, fertilizer disruptions, and threatened trade routes expose the fragility of global food systems, increasing production costs and leaving millions vulnerable to hunger.

The global food crisis is deepening as multiple shocks put increasing pressure on food systems worldwide. According to the World Food Program (WFP), hundreds of millions of people face crisis-level hunger, with conflict, climate change, economic instability, and displacement driving food insecurity. Countries already struggling with poverty and fragile economies remain the hardest hit.

More than 295 million people across 53 countries and territories faced acute hunger in 2024, according to the Global Report on Food Crises. This was an increase of nearly 14 million compared with 2023, driven mainly by conflict, economic shocks, climate extremes, and displacement.

The war in Ukraine showed how conflict in one region can disrupt food supplies worldwide. Ukraine is one of the world’s leading exporters of wheat, maize, and sunflower oil, while Russia remains a major supplier of fertilizers and agricultural inputs. Disruption of Black Sea trade routes and uncertainty over exports triggered sharp increases in food and fertilizer prices, affecting farmers and consumers thousands of kilometers away.

Although global grain markets have gradually stabilized since the initial shock, experts say the structural vulnerabilities exposed by war remain unresolved. Many countries still rely heavily on a handful of exporters for staple foods and farm inputs, leaving them exposed whenever geopolitical tensions escalate.

Similar concerns are emerging from the Middle East. Disruptions surrounding the Strait of Hormuz, one of the world’s busiest shipping corridors, have raised fears over global supplies of oil, natural gas, and fertilizers. Because modern agriculture depends heavily on fuel and fertilizer, a prolonged interruption in these supplies has immediate consequences for food production.

During a ministerial meeting of the MED 9++ countries on “Supporting Food Security and Access to Fertilizers”, United Nations Director-General of the Food and Agriculture Organization (FAO) Q.U. Dongyu warned that the current crisis extends far beyond geopolitics, affecting food production, trade, agricultural inputs, and access to food worldwide.

“This is not only a geopolitical crisis, but also a disruption at the core of the global agrifood system,” he said.

He explained that agriculture follows fixed seasonal calendars and that fertilizers must be applied at precise stages of crop development.

“Agriculture operates on a crop calendar that cannot be postponed. Fertilizers must be applied at specific moments in the crop cycle. If they do not arrive on time, yields are reduced, regardless of what happens later.” He added.

According to QU Dongyu, even delays of a few weeks could reduce harvests, tighten food supplies through 2026 and 2027, and raise food prices worldwide, particularly in import-dependent countries across Africa and Asia.

Agricultural economist Dr. Joseph Glauber, a senior research fellow at the International Food Policy Research Institute (IFPRI) and former Chief Economist at the United States Department of Agriculture (USDA), says today’s food crisis is increasingly driven by rising production costs rather than shortages alone.

In an interview with Witness Radio, Dr. Glauber said energy prices are now one of the biggest factors pushing up food costs.

“The biggest link has been through energy. Higher energy prices mean higher shipping, transport, and processing costs. Consumers don’t eat wheat; they eat bread and processed foods that require energy throughout the production chain,” he added.

Dr. Glauber noted that while global prices for crops such as wheat and maize have risen only modestly, fertilizer and energy costs have risen much faster, leaving many farmers with shrinking profit margins.

“For farmers, profits have declined because input costs have risen faster than the prices they receive for their produce,” he said.

According to Dr. Glauber, African countries face unique challenges because they depend heavily on imported fertilizers and face higher transport costs than larger importing economies.

“Africa is quite vulnerable because shipment sizes tend to be smaller and transport costs are relatively higher,” he explained.

He noted that although fertilizer use varies significantly between African countries, higher prices are already putting enormous pressure on farmers across the continent.

Beyond these immediate impacts of war, experts say the world faces a broader systemic crisis. The Club of Rome has also warned that shocks from the COVID-19 pandemic and the war in Ukraine, to disruptions around the Strait of Hormuz and increasing geopolitical instability, have exposed profound weaknesses in global food systems.

The organization says food security can no longer be viewed apart from peace, climate resilience, and energy security. Governments should instead pursue integrated approaches that strengthen local food production and reduce dependence on vulnerable international supply chains.

Experts are calling for an end to armed conflicts that threaten food production, investment in regenerative agriculture, stronger land rights for smallholder farmers, diversification of food crops beyond the world’s heavy dependence on wheat, maize, rice, and soybeans, expanded regional trade, and a faster transition away from fossil fuel-dependent agriculture.

Hunter Lovins, President of Natural Capitalism Solutions and a member of the Club of Rome, says the world already knows many needed solutions.

“This is not a warning about some distant future. It is a warning about next year’s harvest. We know what works. What we lack is not solutions, but the political will to invest in them before the crisis, rather than after,” she said.

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Campaigning LC I Chairpersons Barred from Land Transactions Until Polls End.

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The Ministry of Lands has restricted LC I chairpersons seeking re-election from handling land transactions until after the July 28 village elections to prevent fraud, disputes and irregularities during the campaign period.

The Ministry of Lands, Housing and Urban Development has temporarily barred Local Council I (LC I) chairpersons seeking re-election from participating in land-related transactions, citing concerns over possible fraud and disputes during the election period.

In a public notice issued on Thursday, the ministry directed all campaigning LC I chairpersons to stop witnessing, endorsing, recommending or overseeing land transactions until the electoral process is concluded.

The directive comes as campaigns for village chairperson elections enter the final days ahead of polling on July 28.

“The advisory has been issued as a precautionary measure to safeguard the integrity of land transactions during this transition period and to minimise the risk of disputes, fraud, or other irregularities that may arise,” the ministry said in the notice.

The ministry advised members of the public against relying on LC I chairpersons who are actively campaigning for services involving the witnessing of land sale agreements, verification of ownership, handling of boundary disputes or any other transaction requiring local administrative involvement.

Individuals with urgent land matters were encouraged to seek assistance from qualified legal practitioners or use other lawful channels until the elections are completed.

“The Ministry urges the public to exercise patience until the election process is concluded. This precaution will help prevent costly mistakes and safeguard the interests of all parties,” the notice added.

The temporary restriction comes amid continued concerns over land disputes, which remain among the leading sources of conflict in Uganda, with local leaders often playing a key role in verifying ownership and facilitating village-level transactions.

Although LC I chairpersons do not have the legal mandate to transfer land ownership or issue titles, they are commonly relied upon during land transactions because of their knowledge of residents and local land histories.

They often help confirm the identity of sellers, identify boundaries and witness sale agreements alongside members of their executive committees, providing community-level verification before transactions are completed.

Legal experts have previously cautioned that LC I endorsements only provide local credibility and do not replace formal requirements under Uganda’s land laws. Buyers are still required to conduct proper due diligence before purchasing land.

According to the Electoral Commission roadmap, elections for Village (LC I) chairpersons will be held on July 28 across Uganda’s 71,214 villages. Elections for Parish (LC II) chairpersons will follow on August 10.

The Ministry of Lands said LC I chairpersons will resume their normal involvement in land-related matters after the conclusion of the electoral process.

Source: nilepost.co.ug

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Mbale City Senior Lands Officer Charged with Abuse of Office Over Sale of Govt Property

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KAMPALA — A senior land management official in Mbale City has been arraigned before the Anti-Corruption Division of the High Court on charges of abuse of office and fraudulent procurement of a certificate of title after allegedly facilitating the irregular sale of government-allocated land to a private businessman.

Emmanuel Paul Kigaye appeared in court Tuesday following his arrest by the State House Anti-Corruption Unit in collaboration with the Criminal Investigations Directorate and the Office of the Director of Public Prosecutions.

According to the prosecution, between September 2019 and May 2023, Kigaye, while serving as senior land management officer at Mbale City, engaged in an arbitrary act prejudicial to his employer’s interests. He is accused of irregularly causing the Registrar of Titles at the Mbale Ministry Zonal Office to issue a certificate of title for Plot 27, Bishop Masaba Road, in the name of businessman Moses Wamatsembe.

The state alleges that the action was illegal because the plot had already been allocated to the Dairy Development Authority. Prosecutors further claim that Kigaye fraudulently processed and procured the registration of a freehold certificate of title — FRV MBA199 Folio 22, instrument number MBA-0009476 — for land measuring approximately 0.5040 hectares at the same location, still in Wamatsembe’s name.

Kigaye denied the charges. He was remanded to Luzira Prison and is scheduled to reappear in court July 16.

The case highlights ongoing efforts by anti-corruption agencies to tackle irregularities in land administration, a sector long plagued by disputes and allegations of malfeasance in Uganda. Land management officers wield significant influence over title processing and allocations, making the position susceptible to abuse when proper safeguards are bypassed.

The State House Anti-Corruption Unit, established by President Yoweri Museveni in December 2018 under Article 99(4) of the Constitution, was created to fast-track the resolution of corruption complaints received by the presidency. Since its inception, the unit has conducted more than 400 operations across more than 100 districts, resulting in the arraignment of more than 856 suspects and 150 convictions. It has also recovered billions of shillings in public funds and facilitated the interdiction of numerous corrupt officials.

The arrest of Kigaye forms part of the unit’s intensified scrutiny of public officials suspected of undermining government interests through corrupt land deals. Such cases often involve collusion between bureaucrats and private individuals to divert public resources for personal gain, eroding public trust in local governance and development authorities.

Court proceedings are expected to shed more light on the alleged transaction as investigations continue. Officials from Mbale City and the Dairy Development Authority have yet to issue public statements on the matter.

Source: pmldaily.com

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