• Fearless Reporting on the Climate Crisis & Corporate Power

    Fearless Reporting on the Climate Crisis & Corporate Power

    Fearless Reporting on the Climate Crisis & Corporate Power From exposing pulp mill politics to investigating 'green' hydrogen projects, Joan's investigative work holds corporations and governments accountable while amplifying community voices fighting for climate and environmental justice.

  • From Africa to Atlantic Canada: Stories of People & Places

    From Africa to Atlantic Canada: Stories of People & Places

    From Africa to Atlantic Canada: Stories of People & Places With over 30 years of international experience, Joan brings unique perspectives from seven African countries to her reporting on environmental challenges, public transport, and community activism in Canada.

  • That Matter: Environmental Justice & Corporate Accountability

    That Matter: Environmental Justice & Corporate Accountability

    Discover Joan Baxter's award-winning books, including "The Mill: Fifty Years of Pulp and Protest" and "Seven Grains of Paradise," alongside her investigative journalism exposing environmental issues and corporate capture across Canada and Africa.

Previously Billionaires at play in the fields of the poor (part 3) Frank Timis

In this, the fourth in a series of six articles on foreign investment in Sierra Leone, Joan Baxter profiles another of five billionaire investors, Swiss national Jean Claude Gandur and his investment in Sierra Leonean farmland to produce ethanol for export to Europe.

King of Sugar and Bioenergy

While some foreign investors focus on underground riches in Sierra Leone, other moneyed foreign investors are seeking to further their fortunes by acquiring large tracts of arable and well-watered land for industrial agriculture in the country. They’re part of what has been called a global land grab that began after the combined financial and food crises of 2007 and 2008, when investors sought safe and profitable places to park their wealth. The land rush is also being driven by and capitalizes on the increased production of agrofuels or biofuels, as well as fears of future food and water shortages caused by climate change, environmental degradation and population growth.

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 Land- and water-hungry investors have found welcoming arms with the Government of Sierra Leone [pdf], which has resulted in a spate of large land deals in the country. Despite a great lack of transparency in many of the deals, it can be estimated using actual leases and investor fliers that in the past few years, foreign investors — primarily from Europe, the UK, China, India — have taken out leases of 50 years, some with possible extensions up to 99, on more than 1.2 million hectares of land, nearly a quarter of all the arable land in Sierra Leone. [i]

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Previously: Billionaires at play in the fields of the poor (part 2) Beny Steinmetz

This, the third in a series of six articles on foreign investment in Sierra Leone profiles another one of  five billionaires,  Frank Timis and his investment in the country’s extractive sector.

King of Iron Ore

Another Ultra High Net Worth Individual — or Ultra HNWI in the curious shorthand of the wealth management industry — working in Sierra Leone’s extractive sector is Frank Timis, originally from Romania and now based in London, UK. In 2011, Timis made his debut on the Forbes List of billionaires.[i] He is said to be the richest Romanian, with a personal fortune in 2012 estimated at over 1.7 billion Euros or about US $ 2.2 billion.[ii] He’s also the owner of two Bombardier Challenger jets.

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Wet ore – or soil containing ore – is loaded into train cars and untold tonnes of it taken directly to port for export to China. Photo credit: Joan Baxter

Timis is a controversial figure, with two convictions for possession of heroin in Australia.[iii] In 2007, the Toronto Stock Exchange declared him an ”unsuitable” person to act as director or major shareholder of any companies listed on the TSX.[iv] In 2009 while he headed the UK-listed Regal Petroleum, the UK authorities fined the company close to US $1 million for issuing misleading statements about its oil reserves.[v] Today he is Chairman of the Timis Corporation, “a portfolio of businesses in the mining, oil and gas, life sciences and agricultural industries”.[vi] It is registered in Bermuda, which appears on the Forbes list of the world’s “top ten tax havens”.

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Previously: Billionaires at play in the fields of the poor (part 1): Sierra Leone on a silver platter?

This, the second  in a series of six articles on foreign investment in Sierra Leone profiles Beny Steinmetz, one of five billionaire investors in the country and his investment portfolio in Africa.

Part 2. King of Diamonds in Sierra Leone

It’s December 2012 and workers at the Octéa diamond mine in the town of Koidu in Sierra Leone are on strike, complaining of poor wages, “appalling” working conditions and ”racism”. [i]  When the Minister of Mines and Mineral Resources travels to Koidu to deal with the crisis, protestors allegedly throw stones. Armed Sierra Leone police claim to be overwhelmed and open fire. Two people are killed, one a passing motorcycle taxi or “okada” driver. The population is furious and riots erupt. The military are called in.

When the Sierra Leonean Vice President visits the district, ostensibly to mediate, he meets with aggrieved workers and community members.[ii] Instead of listening to their complaints, he adds insult to their injuries, telling them to sit on the ground in front of him as punishment for disrupting the operations of the company. He threatens to ”smash” anyone who fails to heed his word.[iii]

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This is not the first time that police protecting the Koidu diamond mine have shot and killed unarmed civilians. Five years earlier, two Koidu youths were gunned down during a protest against the delay in relocating people whose homes lay within range of fallout from the explosions to unearth the diamond-bearing kimberlite. After those deaths, the government of Sierra Leone, under newly elected President Ernest Bai Koroma, suspended the operations of the mine and launched an official inquiry into the event. A few months later the man behind the Koidu mine, Israeli billionaire Beny Steinmetz, jetted in to the capital Freetown and met with President Koroma.[iv] Without further ado, or action on the recommendations of the inquiry and the Government’s own White Paper that had been drawn up to implement them, the mine was suddenly re-opened without any explanation.

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There is a great deal of buzz about Africa’s economic awakening, with some countries experiencing double-digit growth in gross domestic product that is being driven by waves of foreign capital, as investors from Asia, Europe, North America, the Middle East and also Latin America descend on the continent. Many of the investors are after natural resources, mineral and oil riches and also farmland. This raises the question: is the foreign investment benefitting the continent or is it just another scramble for Africa, the last stage of colonialism? This, the first in series of six articles, Billionaires at play in the fields of the poor, investigates how foreign investment is playing out in one small African country. It looks at five billionaire investors, their big investments and at what’s in it all for Sierra Leone.

Part 1. Sierra Leone on a silver platter?

Africans and their leaders have every reason to be fed up with the negative way their continent has been portrayed and viewed by the outside world. It is definitely time that they tried to undo the damage by painting pictures that highlight the continent’s many strengths and riches.

PVB-GN_06-002-300x225So it was that in late 2009, Sierra Leone’s President Ernest Bai Koroma took the podium at the Sierra Leone Trade and Investment Forum at the Queen Elizabeth II Conference Centre in London, England. The country was still better known internationally for “blood diamonds” and a brutal civil war they fuelled, than for its impressive peace-building efforts in the ten years since the war ended. President Koroma wanted to change that.

“Our soils are fertile and our land under-cultivated, offering ideal investments in rice, oil palm, cocoa, coffee and sugar,” he declared.  “Our ground is rich in minerals: iron ore – the third largest deposit in the world; bauxite, rutile, gold and yes, diamonds. Our shores boast 400 kilometres of white sandy beaches, just waiting to be developed for tourism . . . Our seas are some of the most well-stocked and under-fished in the world”.

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Food aid as big business

For more than half a century, the American government has operated something called “Food For Peace”. A 2004 booklet from the United States Agency for International Development (USAID) that celebrates the 50th anniversary of the program, proclaims that it is a “unique combination of American compassion together with the unmatched efficiency of our nation’s farmers . . . an unbroken chain of humanity stretching from this country’s fertile fields to hungry families half a world away. In the end, hope is what America has promised, and hope is what Food for Peace delivers around the world every day.”

Or so they say.

It is absolutely true that in emergency situations food aid saves lives. It can also be an important tool in development projects that involve providing food for work on labour-intensive community works or to encourage school attendance among vulnerable groups. If food aid is purchased locally or regionally, it can also help spur local agricultural production and improve rural livelihoods.

But food aid is also very, very big business and it’s also a foreign policy tool.

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Half of the population of Sierra Leone was displaced by the brutal and senseless civil war that raged in the country from 1991 until 2002. During that time, more than two million people fled their villages and farms as rebels terrorized them and others joined the fray. Because of this and the destruction of the nation’s infrastructure, by the end of the war, Sierra Leonean farmers were producing just over half of the staple rice consumed in the country. By 2007, they had upped their output and were producing nearly three-quarters of its rice needs. And that, thanks mostly to small-scale farmers toiling in rice swamps and mixed upland farms. They did so without much support from anyone; at that time family farming just wasn’t a priority with major donors and governments.

Then in 2008, in the wake of the global financial meltdown and fuel and food crises, some new and powerful players suddenly turned their attention to farms, or rather, to land as an asset in their portfolios. Foreign investors suddenly saw farmland as the new “gold, only more profitable” and set about acquiring enormous tracts of arable land in Africa, some just speculating on the new asset and some because they planned to turn the land into giant offshore farms that would turn Africans into lowly wage labourers (if they were lucky) or landless peasants on their own land in their own countries. Foreign donors and African governments alike began to clamour for the transformation of the family farm from a way of life into agribusiness, and large mechanized farms that would conform to economies of scale.

Jusu-Kamara-close-V-225x300The experts drawing up the blueprints for millions of lives in Africa almost invariably repeated the assumption that young people prefer city life and that they don’t want to work the land the way their parents and their forefathers did. Sierra Leone’s national rice development strategy was developed jointly by Japanese International Cooperation and the Alliance for a Green Revolution for Africa, that like AGRA was funded by the Rockefeller and the Bill & Melinda Gates Foundations. Neither of these have much in common with the very people they claim to be trying to help, namely the unemployed Sierra Leonean youth or the hard-working Sierra Leonean farming families.

This doesn’t prevent them from speaking on behalf of the youths and farmers. In a blueprint for a rice strategy in the country, the Coalition for African Rice Development make this statement: “The existing labour intensive farming is no longer attractive to the youths who are drawn to urban areas for easier jobs.”

Easier jobs? Doing what? Working as a watchman for a foreign-owned security company twelve hours a day, six days a week, for just over one dollar a day? Peddling on the streets a backpack of pirated DVD collections from Asia? Making a few cents a day selling top-up credit for mobile phones? Or worse, begging? Stealing to feed themselves?

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Photography

A selection of Joan's images from around the world