The horrors associated with palm oil are rooted in colonialism that is sometimes perpetuated without interruption, over the centuries. In the Democratic Republic of Congo, exploitation continues with contributions from development banks in Germany, France and the Netherlands. A complaint.
Congo, colonialism and palm oil. The story of Unilever
The giant river
Congo
It gives its name to two countries. The Democratic Republic of Congo (DRC), with a population of about 87 million and an area 80 times that of Belgium. Its former colonial power, distinguished for nearly a century of genocide and other atrocities (until 1960, the year of independence). And the Republic of the Congo, on the other side of the river, with a population of just 5 million and a GDP per capita 10 times higher, thanks to its oil fields.
In 1911, the Belgian colonial administration of what is now the DRC awarded a huge land grant to British Sir William Hesketh Lever. Almost one million hectares, violently taken away from local communities. Thus began the exploitation of slavery-with the military support of the Belgian army-to extract palm oil. That from the ‘Huileries du Congo Belge‘ went to the group’s English soap factories, the ‘Lever Brothers‘.
The giant Unilever was born in 1930 from the merger of ‘Lever Brothers‘ with ‘Margarine Unie.’ (1) And it founded its wealth precisely on the concessions of (slaves and) land that are still claimed by local communities. In 2009, Unilever then got rid of the bloody burden by ceding the oil palm crops-headed by ‘Plantations et Huileries du Congo’ (PHC) -to a Canadian company, Feronia Inc. (2)
Congo, colonialism and palm oil. The role of European development banks
The so-called.
Development Finance Institutions
(DFIs) were created by some Western governments (former colonial powers, mostly), with the stated goal of financing projects in Developing Countries (DCs). These public, taxpayer-funded institutions collectively provide about US$100 billion each year to private companies operating in developing countries.
A significant share of investment is devoted to agribusiness projects, where land grabbing, human rights violations, worker exploitation and corruption are particularly prevalent. (3)
The Feronia project in the Democratic Republic of Congo was thus financed by the development banks of the United Kingdom, Germany, France, Belgium, the Netherlands, Spain and the United States. With more than US$180 million from 2013 to date.
‘
Plantations et Huileries du Congo’
(PHC), in particular, received $49 million in loans from a consortium of lenders led by Germany’s development bank (
Deutsche Investitions und Entwicklungsgesellschaft
, DEG), with support from those of Belgium and the Netherlands. (4)
Palm oil, land robbery and exploitation of workers Congo. The complaint to the German development bank
In November 2018, nine local communities-represented by the Congolese NGO RIAO-RDC, with the support of an alliance of international organizations and countries with development banks involved in Feronia’s financing–complained to the German Development Bank (DEG). (5)
Local communities in the DRC denounce the continuing conflict over land, which continues on more than 100 thousand hectares of arable land. They complain of a direct link between the denial of access to land and the extreme poverty of the people. In addition to the exploitation of workers, on oil palm plantations run by Feronia, with daily wages still less than US$1.25.
Workers interviewed by international NGOs joining the complaint even report that a portion of their salaries are paid ‘in kind,’ with products such as refined palm oil and soap. A practice dating back to the Unilever period, known as the ‘Marsavco package‘ (named after the Marsavco company in Kinshasa, formerly owned by Unilever, now Feronia’s main customer).
The German development bank, along with those of other European countries and the U.S., thus finances the perpetuation of the most boorish colonialism. Where land robbery is compounded by below-cost-of-living wages, rampant poverty and malnutrition, and no concrete support for local communities. #Let’sHelpHim is a very different concept.
As a result of the complaint, the DEG-led consortium of lenders is expected to force Feronia into a dispute resolution with the communities. Resolve the territorial conflict first and foremost, and ensure basic human rights with concrete actions to be continuously monitored by international NGOs.
Sustainable palm oil?
To those who still believe this despicable sham
it is confirmed that Feronia is one of several palmocrats who adhere to RSPO
. (6)
Shame!
Dario Dongo
(1) Margarine Unie (Union) in turn had been formed by margarine producers Jurgens and Van den Bergh, Jbusinesses, Centra and Schicht. And it had already acquired, in 1928-1929, the Calvé-Delft (F-NL) and Hartog (NL) groups
(2) An extensive report on the Feronia affair is available on the website of the NGO
Grain
, at
https://www.grain.org/article/entries/5564-land-conflicts-and-shady-finances-plague-dr-congo-palm-oil-company-backed-by-development-funds.pdf
(3) A famous example is the World Bank’s financing of deforestation and land-grabbing projects in Gabon for intensive oil palm cultivation. See https://www.greatitalianfoodtrade.it/consum-attori/olio-di-palma-e-deforestazioni-nell-eden-dell-africa-coi-soldi-della-banca-mondiale
(4) Instead, the funds of the DFIs of the UK, Spain, France, and the U.S. hold shares in Feronia Inc. either directly or through intermediaries
(5) The text of the complaint is available at
https://www.farmlandgrab.org/uploads/attachment/DEG_Complaint_PHC_Annexes_final_redacted.pdf
.
(6) V.
https://www.rspo.org/members/5284/Feronia-Inc
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.