Farmlands, or agricultural landscapes, captures the interest of a number of researchers based at the Department of Human Geography, Stockholm University. On this blog we share information about research findings, activities, events and comments related to our work.

Our interest in farmlands has three roots: farming, landscape and society.
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Landscape as society-nature relations, congealed history, and as space and place
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Sunday, March 26, 2017

Swedish public costs for failed SEKAB/EcoEnergy more than 200 million SEK

Norwegian based journal Development Today is always well informed about news on Nordic devlopment projects. Two articles in today's issue deal with the failed SEKAB/EcoEnergy sugar plantation in Bagamoyo (see my previous posts on this blog Green economy  and Swedish agrobusiness abroad fails)

From the article IFAD days away from cancellling Bagamoyo sugar loan we learn that Tanzanian government must confirm the status of the Bagamoyo sugar and ethanol project to IFAD before the end of this month. IFAD (The International Fund for Agricultural Development - an agency of the UN) has guaranteed huge loans and grants for the development of outgrower schemes in Bagamoyo together with the African Development Bank.

From the article SEKAB never recovered losses from Bagamoyo we learn that the losses of SEKAB when they sold their Africa-based companies to Per Carstedt for 400 SEK were written off early. The chances of getting small pieces of that back through buying cheap ethanol from Bagamoyo according to the agreement from 2011 now seems to have disappeared into thin air.

So it is now possible to start looking at the losses of public Swedish money..

SEKAB is a public-owned energy company where municipalities (local districts)  in the north of Sweden have put in money for the Africa plans. According Swedish television investigative program Uppdrag granskning 500 million SEK disappeared from taxpayers money into the SEKAB Africa companies. This and other problems with their energy company took a heavy toll on the economy of Örnsköldsvik town according Uppdrag granskning in August 2014 .

According to Development Today the losses from SEKAB when selling the company to EcoEnergy were 158 million SEK that were written off  long time ago.

On top of that Swedish International Development Agency Sida, has a claim of SEK 54 millions on EcoEnergy, according to Development Today.

It seems safe to say that losses of Swedish taxpayers for this land grabbing adventure amounts to much more than 200 million SEK.

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