Compliance Advisor Ombudsman

Complaint

The IFC-supported Agri-Vie Agribusiness Fund is a private equity fund with the purpose of making equity investments in agribusiness companies in Southern and Eastern Africa. The Fund is managed by AA Fund Managers, incorporated in Mauritius, which draws on advice from Agri-Vie Investment Services incorporated in South Africa.  The target size of the Fund is $100 million, with a proposed IFC equity investment of $7 million.

In its current portfolio, Agri-Vie has invested in New Forests Company (NFC), a UK-based forestry company operating established and growing timber plantations in Eastern Africa.  Operational in Uganda since 2005, NFC operates three pine and eucalyptus plantations -  in the Mubende, Kiboga and Bugiri districts respectively.

In December 2011, five affected community representatives, Oxfam International, Oxfam Great Britain, and the Uganda Land Alliance (a national consortium of organizations advocating on land issues) submitted a complaint to the CAO on behalf of people living around the plantation in Kiboga.  The complainants raise concerns about forced evictions and displacement in the plantation area.  They contend that the evictions have negatively impacted their communities by displacing them from land, destroying their private property, and forcing them to forgo health, education, and livelihood opportunities. The complaint also voices broader concerns about the due diligence surrounding the project.

CAO Action
The CAO found the complaint eligible for further assessment in January 2012. The CAO team traveled to the field in February and March to meet with the relevant stakeholders to explore options for a collaborative solution of the issues raised in the complaint. 

After CAO conducted its assessment of the complaint, both the representatives of the affected community and NFC indicated their willingness to participate in a dispute resolution process.  This is captured in CAO's final Assessment Report which is available below.

Status
CAO is currently mediating between the affected community and NFC.  Oxfam and Uganda Land Alliance are currently supporting the affected communities in the process.  The assessment of the complaint has been finalized and CAO's final Assessment Report, along with IFC's formal response, is posted under the "View Documents" link below.  For information on the second complaint, see case "Uganda/Agri-Vie Fund-02/Mubende".