Tenure risk – or the risk of dispute between investors and local people over land or natural resource claims – is endemic in emerging markets. There are hundreds of recorded incidents of tenure disputes creating delays, violence, project cancellation and even bankruptcy at a corporate level. These tenure disputes create lose-lose outcomes for investors, local people and national governments while robbing emerging markets of the developmental benefits of responsible land investments.
However, many investors are unaware of the problem or lack the time and resources to address it. Others lack the means to quantify the risks to business of tenure disputes.
This report – based on consultation with business operating across the African supply chain – shines a spotlight on the severity of the issue, and shows that tenure disputes can create substantial financial losses. It also presents a new publicly available tool, the Tenure Risk Tool (TRT), that investors can use to assess and manage tenure risk.
Authors: Anna Locke, Lou Munden, Joseph Feyertag, Benedick Bowie
Authors and Publishers
The Overseas Development Institute (ODI) is the UK's leading independent think tank on international development and humanitarian issues.
Our mission is to inspire and inform policy and practice which lead to the reduction of poverty, the alleviation of suffering and the achievement of sustainable livelihoods in developing countries.
We do this by locking together high quality applied research, practical policy advice, and policy-focused dissemination and debate.
TMP Systems is a boutique consultancy based in the United Kingdom, with staff in the United States and the Philippines. Our work spans asset management, commercial investment systems design in carbon, energy and land use and environmental, social and governance diligence.