INVESTING IN LAND IN TANZANIA – THE BASICS

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In the past four decades, it has not been easy to get access to land in the countryside as acknowledged in the Agricultural Sector Development Strategy’s (ASDS). In the same period it has not been easy to get access to urban land either. The latter constraint has manifested itself in the mushrooming of slums and invasion of open spaces in towns and cities of Tanzania as well as scarcity of plots for investment. This is taking place in spite of the Human Settlements Development Policy of 2000, the TIP and great urge to develop safe and secure habitat for all.

It is important to clearly know the land resources available for economic and cultural activities if possible in the various land categories. The national land policy (NLP) gives the land use statistics that, although over ten years old now, will serve to guide discussion on this matter. Firstly, the statistics show that slightly less than 50% of Tanzania land mass is 3 comprised of arable land at 48.8 million ha. Ha. (GoT, 1995). However, it is only 9.0million ha that is under cultivation, implying that over 81.6% of all arable land is not used for farming. Also, some 8.4 million ha of land is used for small scale farming by about 3.8 million peasants at an average of 2.2 Ha, per peasant. The remaining 592,074 ha, is managed under large scale farming that includes sisal, coffee, tea, estates and plantations under granted rights of occupancy.

The National Land Policy (NLP) of 1995:

The NLP “reiterates and retains the four central land tenure tenets in a modified form that land is publicly owned and vested in the president as a trustee on behalf of the citizens; speculation in land will be controlled; rights of occupancy whether statutory or customary are and will continue to be the only recognised types of land tenure; and rights and title to land under any consolidated or new land laws will continue to be based mainly on use and occupation” (GoT, 1995). Under this system therefore, the land is “not owned” but leased from the State for a specified number of years. It is vested in the Presidency and availed to users through a mechanism that is centred in the Minister responsible for lands, Commissioner of Lands and the land administration system centred around that office.

ACCESS TO URBAN LAND – HAS ANYTHING CHANGED?

Land scarcity in rural areas of Tanzania is a recent phenomenon and is engineered by the money economy, political policies, population growth and village land degradation that has depleted essential resources such as water and pasture. However, there has always been a high demand for plots in urban areas of Tanzania following the urbanisation trend of recent years. Reports of the various divisions of the land sector Ministry in Government indicate that there prevailed an ability to cope with the situation of increasing demand for land in urban centres throughout the 1960s. At this time the needs for plots, both residential and commercial, were supplied in accordance with demands, which were promptly met. Demands were satisfied on a policy objective so as “not to stall development on account of absence of plots.” The scenario changed abruptly in 1972 and could not be rectified until today.

The Land Bank Resuscitated

The concept of a land bank was but forgotten until 1991 when Tanzania was making a reentry into the free market economy. A new legislation was enacted – The Tanzania Investment Act of 1997 that also created the Tanzania Investment Centre (TIC). The changes paved way for private investment, also enabled by the privatisation of many public investments on land such as sisal, coffee and tea estates, ranches, and other parastatal organisations. The basic premise of a land Bank at TIC is the creation of a register for land that is available for investment. Upon resuscitation, the Land Bank concept was rekindled at the Tanzania Investment Centre as a database of entries of landowners offering their land for investment, under various agreements.

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