South Sudan Gets Land Lease to Raise Crops, or Maybe Raise an Army

Apr 16, 2009
New York investment firm mulling more land leases in S. Sudan.

from African News Analysis by David Barouski

Sudan Tribune16 April 2009
Jarch Management Group, Ltd., a US investment firm, disclosed that it is considering additional opportunities to lease large tracts of farmland in Southern Sudan.

This report follows the announcement in January of a massive lease agreement that prompted some tension within governing circles in Southern Sudan.

In an apparent change of course from oil investing to agriculture, Jarch Management took a 70% interest in the Sudanese company Leac for Agriculture and Investment and leased approximately 400,000 hectares of land claimed by General Paulino Matip, a figure now straddling a deep fissure within the Sudan People’s Liberation Army.

In a statement emailed to Sudan Tribune today the company disclosed that it aims to lease another 400,000 hectares of land by the end of the year.

"Since its January 2009 announcement that it had leased about 400,000 hectares, the Company has had a multitude of offers to buy and lease farmland from around the world,” said a statement from the management of the company.

“However, the Company is focused on frontier African countries and continues to look for opportunities in farmland and other natural resources in these countries. As such, the Company hopes to conclude more deals for more leased farmland. The Company is hopeful that it can lease at least another 400,000 hectares of land by the end of the year.”

• South Sudanese law requires that large leases of land be approved by two local government bodies.
• Accordingly, a January statement from Leac Company noted that the acquisition would include dealings with local land authorities and stressed that “the state and local governments shall have budgets for development because of the cash flows from the agricultural schemes the two companies will operate.”

While U.S. companies are banned from doing business in Sudan, agriculture in Southern Sudan is exempted from sanctions provided that the national government does not have any stake in the business and provided that no imports or exports pass through non-exempt areas.

Jarch Management Group, Ltd, which is registered in the Virgin Islands, is managed by New York investor Philippe Heilberg, commodities traders and former State Department and Central Intelligence Agency officials, among others.

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