Sime Darby and land grabs in Liberia

This fact sheet by Friends of the Earth International details the impacts of palm oil plantations developed by the Malaysian company Sime Darby in Liberia. It alleges that the company's land concessions violate Liberian laws and international human rights principles, leading to land grabs, deforestation, and the loss of local livelihoods. The document also identifies European financial institutions providing funding to Sime Darby and calls for the renegotiation of contracts to ensure community consent and environmental protection.

• On July 23, 2009, Sime Darby signed a 63-year lease agreement with the Liberian government for a Gross Concession Area of 311,187 hectares. The agreement required the company to cultivate 220,000 hectares within twenty years, pay US$5 per hectare per year for cultivated land, and employ over 30,000 Liberians.
• The Liberia Extractive Industries Transparency Initiative (LEITI) found that the contract award process violated local laws. Specifically, 100,000 hectares were awarded without competitive bidding, the concession lacked a required Certificate for Concession, and there was no evidence of mandatory public stakeholder consultations. Additionally, the 63-year lease term exceeds the 50-year limit set by Liberian public lands law.
• Sime Darby's operations have negatively impacted local communities by absorbing farmlands and forests essential for food and livelihoods without providing compensation. In Garwula District, forest areas used for cultural practices were destroyed. In Bomi County, the company began clearing land in Golidee Town in March 2013 without negotiating with the Gorbli clan traditional area.
• Environmental assessments indicate significant ecological risks. An assessment by the University of Reading for Bopolu District found potential loss of biodiversity in the Upper Guinean Forest Ecosystem, including endangered birds, and a reduction in carbon storage due to the clearance of closed forests. Sime Darby's own reports acknowledge that the Garwula District area contains protected species such as the African Buffalo and Water Chevrotain.
• The contracts are alleged to violate international human rights conventions (ICCPR, ICESCR, and ICERD) by failing to protect customary land rights, not guaranteeing Free, Prior and Informed Consent (FPIC), allowing involuntary resettlement, and failing to mandate alternative nutrition sources for those losing farmland.
• European financial institutions have provided significant funding to Sime Darby, including 280 million euro in loans and 250 million euro in new bonds. Major shareholders include the Norwegian Government Pension Fund - Global (holding 97 million euro), Schroder Investment Management (33 million euro), and PfZW (25 million euro). Deutsche Bank and AXA Group are the largest European bondholders, while HSBC and Standard Chartered underwrote bonds worth 125 million euro each in January 2013.

APA

Friends of the Earth International (2013). Sime Darby and land grabs in Liberia. https://www.foei.org/wp-content/uploads/2020/12/Factsheet_Sime_Darby_Liberia.pdf

Chicago

Friends of the Earth International. Sime Darby and land grabs in Liberia. 2013. https://www.foei.org/wp-content/uploads/2020/12/Factsheet_Sime_Darby_Liberia.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=Sime Darby and land grabs in Liberia |date=June 2013 |url=https://www.foei.org/wp-content/uploads/2020/12/Factsheet_Sime_Darby_Liberia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternational2013sime, author = {{Friends of the Earth International}}, title = {{Sime Darby and land grabs in Liberia}}, institution = {Friends of the Earth International}, year = {2013}, month = jun, url = {https://www.foei.org/wp-content/uploads/2020/12/Factsheet_Sime_Darby_Liberia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }