The Political Economy of Land Grabs in Malawi: Investigating the Contribution of Limphasa Sugar Corporation to Rural Development

Though a recent phenomenon, land grabs have generated considerable debate that remains highly polarized. In this debate, one view presents land deals as a path to sustainable and transformative rural development through capital accumulation, infrastructural development, technology transfer, and job creation while the alternative view sees land grabs as a new wave of neo-colonization, exploitation, and domination. The underlying argument, at least theoretically, is that international land deals unlock the much needed capital to accelerate the achievement of sustainable and transformative rural development in developing countries. It is against this backdrop that this paper examines the contribution of large scale land deals in Malawi to rural development by employing the political economy perspective using the Limphasa Sugar Corporation as a case study with particular focus on the nature and interest of the actors involved; the legal framework supporting large scale land deals; major individual and community benefits; and the extent to which these large land deals can indeed bring about sustainable and transformative rural development. The findings of this article demonstrate that large scale land deals present short term benefits to local communities such as capital for rural development; technology transfer and job creation in exchange for the priceless economic and social capital that local people depend upon; destruction of local social systems; deepening of local communities’ vulnerability to economic shocks; and the entrenchment of community dependence that may in the long run result in social and political unrest.