There is so much you learn while travelling the depths of African countries. Living a full time entrepreneurial life means always seeking out new adventures. My latest venture this time led me to Lakota, in the South-Bandama Region in the Ivory Coast, HOME of Didier Drogba. I learnt how one can make so much out of so little. You get to appreciate the little things in life. Above all, spending time there has also made me realize that there are indeed opportunities around every corner. When it comes to the farming business, if you a faint-heart, or not physically and mentally ready for the challenge, then you better stay in the city. On my first day I had to cover an 18 km distance on foot, in my rubber boot; half that number on my second day. You have to expect the unexpected and be a very flexible person. I have traveled and met charcoal masters, lumberjacks, cocoa buyers, Lebanese factory owners, wealthy transporters, village chief…. gathered data and info, with the intent of one day publishing them. It has now become obvious that the Farming Business in Africa is interesting many funds and Agri-Businesses in the Western World. The Economic crisis and more stable and democratic regime, are driving businesses back to Africa. Just visit websites such as HowWeMadeItInAfrica,JeuneAfrique,Esi-Africa, VC4Africa,OmegaScropi and read their recent reports on the business boom in Africa and you will understand why the Black Continent is becoming the solution for the on-going economic and food crisis. From Ethiopia, to Mali, BIG Agri-businesses are making the move and fueling the New Scramble For Africa. It’s now time to think about one of Africa biggest asset, land. I have divided this post “Land and Farming Business: The new Scramble for Africa”, into a series of steps. Hope you will enjoy it! Again keep in mind that these are personal experiences. This is not an attempt at trying to get better regulations or so ever. This is just an entrepreneur trying to get you in rubber boots and thinking about farming, so please bear with me.
Step 1. Land Acquisition: Do you know the Enemy?
How many of you have ever fantasized about owning your own piece of land and become a successful farmer? How many of you failed at it or lost their investments because they ended up being scammed by some locals? Did the lack of proper policies and regulation for business and land tenure stopped you investing? I do not think I have the ultimate solution but I think I have seen enough to really tell you how it goes and hopefully you will get into the farming Business, knowing a bit more. Well in case you do not know about the land business in Africa, let me put it this way! It almost feel like a remake of “Scramble for Africa” where BIG businesses are making the move to Africa and grabbing land the size of entire modern towns in the western world. What has stopped many of these Agri-businesses in the case of Ivory Coast, is that land is an extremely delicate issue linked to politics, tribal conflicts and inadequate laws on land and property. READ MORE ABOUT LAND TENURE LEGISLATION (LAWS) IN IVORY COAST. LEARN MORE ABOUT INFORMAL LAND TRANSACTIONS HERE. If you ever been to the Ivory Coast, you will know that owning farming land is tied up to where you from, your ethnicity, family and social status. I mean it’s certainly not New York where you can just walk-in and let your friend BENJAMIN FRANKLIN do the talking! No matter how wealthy you are, you will probably learn a thing or two; African dignity (stubbornness) and a traditional system of values and that, ladies and gentlemen, is the plain truth.
Now is there any exception? Yes. Are there any alternatives? Yes. Where there is a will, there is always a way. Let’s put smart at work here and see how I have seen it done.
-Planter/ Partager (Plant and share): Usually people that own ancestral land in Ivory Coast do not have the capital to make use of it so that’s when you come in play as an investor. This system is called “Planter, Partager” which stands for plant and share. In this type of deal, it is usually agreed upon that you as the investor will earn about 70% of the revenue that will be generated from the exploitation of the loaned property. The master of the property (real owner) will get about 30% of total revenue. This means that the costs of doing business (operating cost in this case) are the responsibility of the investor. You are also expected to financially assist your landlord in case of funerals or any other public events in the community that has adopted you. Paper Work is handled at the “prefecture” usually under the supervision of the “prefet” (authority in charge of regional administration) himself. An agreement can last for up to 70 years, depending on the arrangement so make sure to include as many details as possible in your agreement.
-Purchasing: Look for distressed property. One place to start OBVIOUSLY is to check a notary’s office. Be very clear and specific about your objectives. If you ever stopping by in the Ivory Coast to close good deals, checkout Kouassi Law Firm. I will recommend them because of their seriousness and their experience in helping with this kind of ventures. In fact, they always provide good info and tips for property and land hunters. If timing is right and you capital ready, you will be closing some very very good deals. Always your homework. Again BEWARE OF SCAMMERS and please seek legal advice before before getting into any kind of transactions. DON’T BE THAT GUY!!!
End of Part I
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