Remember
the Swedish company Sekab that cheated three public energy companies in
northern Sweden into investing substantially in ethanol production in Bagamoyo,
Tanzania, some fifteen years back? The company secured vast tracts of land,
which allegedly was unused. However, it turned out that people were in fact
living on the land, and cultivating it, and that it also was important grazing land
for pastoralists who had been forced off their grazing areas in Hanang District
by commercial grain production.
The ethanol
project never got off ground and the Swedish tax payers’ money went down the
drain.
Sekab’s
Tanzanian wing reappeared as a new company EcoEnergy. Now ethanol was no longer
on the agenda. Instead EcoEnergy wanted to start conventional sugar production
in Bagamoyo, promising increased land productivity, sustainable livelihoods,
and a growing local economy. However, soon
reports appeared (from ActionAid, Oxfam and others) that local farmers lost
land and water without being aware of what was happening and that they did not
understand the loan agreements they became tied to. Despite considerable
criticism against the company’s plans EcoEnergy managed to get Sida to issue a
bank guarantee for this project at 120 000 000 SEK.
The
Tanzanian daily The Citizen (20 May 2016) now reports that Prime Minister
Kassim Majaliwa has told Parliament that the government has shelfed the plans
for the sugar plantation project in Bagamoyo to safeguard Wami River and the
Saadani National Park, which borders on the proposed 20 000 ha sugar project.
Is this the
end of EcoEnergy’s decades of attempts to exploit the disputed land in
Bagamoyo? Will their investors, now that no incomes for the company are to be
expected, secure their money by claiming Sida’s bank guarantee? This would mean that
Swedish tax payers have once more lost very substantial sums to a project that
from start was heavily criticised by Tanzanian and international researchers
and by environmental organisations.