Norfund lost NOK 146 million on a plantation in Tanzania
In 2008 the Guernsey-registered company Agrica took over the 5,000 hectare Mngeta farm in the Kilombero Valley in central Tanzania. International investors with development aid money tried to ensure modern rice production on a large scale. But Agrica has never been profitable and has struggled with floods, droughts, and unstable market prices for rice in Tanzania. Part of the production was to take place through contracts with small farmers, but there were disagreements about prices. Criticism has been levelled at the way the company handled land rights and what compensation was given to those who lived on the plantation before production began.