In Senegal’s desolate fields, rusting pipes and unpaid workers are all that remain of a once-promising venture by a U.S. company that aimed to transform a massive tract of land—twice the size of Paris—into an agricultural empire, creating thousands of jobs in the process. Through interviews and internal documents, a close examination of the failed project reveals a growing trend of foreign investment in Africa, with many such ambitious initiatives falling short of their promises.
Backed by the Senegalese government’s support, the company planned to export animal feed to affluent Gulf countries, but those plans never materialized. At first, the arid acacia-studded landscape at the Sahara Desert’s boundary seemed improbable for agriculture. However, as climate change affects traditional farming areas, foreign investors are increasingly eyeing Africa’s untapped potential. The continent hosted a third of global large-scale land deals from 2000 to 2020, mostly for agricultural purposes. Yet, more than a fifth of these ventures, meant to bolster global food production, collapsed.
In 2021, the village of Niéti Yone in Senegal welcomed investors from a U.S.-listed firm, African Agriculture. Over tea, they promised employment opportunities for locals, first by hundreds and eventually in the thousands. Frank Timis, originally from Romania and holding the majority stake, had previously dealt in gold and fossil fuels in West Africa. Meanwhile, Gora Seck, a Senegalese mining entrepreneur, had seen earlier biofuel plans for the area fail. The land deal for 20,000 hectares at $7.9 million gave African Agriculture water rights from Senegal’s largest freshwater lake, aiming to cultivate alfalfa exports to regions like Saudi Arabia and the UAE.
The venture, however, divided the local farming community. Traditional herders resisted, while others, like Doudou Ndiaye Mboup, saw it as a solution to unemployment. Ultimately, a small portion of the community was employed, but the project soon crumbled. In late 2022, African Agriculture announced a public listing to bolster funding. Valued at $450 million, its valuation faced scrutiny over its implications for food security and emissions. The company did raise $22.6 million on the NASDAQ, but a substantial payment to a merger partner spooked investors, highlighting flaws in bypassing traditional listing evaluations. Months later, the company’s shares tanked, and it was delisted.
This left the local workers, including Mboup, without wages for months. Seeking nearly $180,000 in back pay, they protested and eventually reached a settlement for future compensation. Former investors like Timis remained silent; Seck distanced himself, while current management stayed tight-lipped. Meanwhile, frustrated herders and farmers demanded the land return to community use, though such reversals are rare, with just 11% of cases leading to land being returned to locals.
Despite the failure, the project’s former CEO, Alan Kessler, pursued another investment opportunity, this time in Cameroon and Congo. Seeking $875 million investment, this new venture spans 635,000 hectares, intended to escalate corn production. However, the plan has faced skepticism over its ambitious projections, particularly concerning corn yields. While Kessler disputes these concerns, previous lofty promises under his leadership failed to materialize. Former executives voiced their doubts over the unsustainable valuation presented during the initial public offering.
The project in Senegal cast a long shadow, damaging community trust as once-harmonious cohabitations turned contentious. Looking to the future, Kessler remains optimistic about potential ventures in Senegal, seeing a warm welcome upon return.