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Following the 2007-2008 financial crisis and the collapse of the housing market, private equity funds have found a new lucrative soft commodity market to invest in – farmland. In a short period of time, obscured from public view, the flow of private capital into farmland and agriculture has grown dramatically worldwide.

Mozambique’s history of Portuguese colonialism, three wars, and then the imposition by the World Bank and International Monetary Fund of a harsh neo-liberal economic model led the government in the 1990s to accept the idea that the only way to promote development and end poverty was through encouraging foreign investment. Mozambique was identified by the World Bank as one of five sparsely populated African countries with large tracts of land available for rainfed cultivation. After 2000 rising food and fuel prices and new climate change-related attention on forests triggered the interest of investors in Mozambique, particularly for trees (for paper, timber and carbon credits) and agrofuels (notably sugar and jatropha).

Emergent Asset Management (Emergent), a private limited liability company based in the UK and minority owned by Toronto Dominion Bank, claims to be managing the largest agricultural fund in Africa. Using private equity to invest in industrial agriculture in sub-Saharan Africa, Emergent is however, a prime example of the troublesome rise in speculative funds that are investing in African agricultural land.