Farmland investments in Tanzania: The impact of protected domestic markets and patronage relations

Abstract

Since the global land rush began in 2008, an abundance of studies have either documented the international and domestic drivers of the phenomenon or assessed the local impact of new land acquisition dynamics. However, beyond acquisition processes, the effect of farmland investments on economic growth in developing countries remains highly uncertain. In particular, the implementation gap remains substantial. Meanwhile, little is known about how global processes and national politics shape the socio-economic impact of such projects once they are operational, or why some investors are more successful than others in operationalizing their investment. This article explores these issues through a case study analysis of a large-scale land deal involving Kagera Sugar, a Tanzanian firm operating within a protected national market. Focusing on the company’s contract farming scheme and the politicization of land formalization, I argue that Kagera Sugar’s impact on the agrarian political economy reflects its ability to cultivate patronage relations at the national and local level. My findings support the argument that, from a socio-economic perspective, farmland investments tend to consolidate existing local processes of differentiation. Furthermore, the article sheds new light on the role played by patronage relations in shaping production models, practices, and outcomes at the local level. Finally, I underscore the importance of viewing operationalization through a political lens, insofar as political patronage plays a key role in ensuring operational profitability.