Overview
Tanzania's land ownership framework is governed by the principles laid out in the National Land Policy, incorporated into the Land Act No. 4 and the Village Land Act No. 5, both enacted in 1999. These laws establish that all land in Tanzania is public property, held in trust by the President on behalf of the citizens.
Land Categories in Tanzania
For effective management, land in Tanzania is classified into three categories:
General Land:
Land under granted titles and managed by the Commissioner of Lands.
Village Land:
This land falls under the jurisdiction of registered villages, accounting for approximately 70% of the country’s land area.
Reserved Land:
Includes National Parks, forest reserves, and wildlife conservation areas, constituting about 28% of the total land area.
The President, as the trustee of the land, is the sole authority responsible for reclassifying land from one category to another. Investors can acquire land for investment purposes either from General Land or Village Land.
Land Ownership for Investors
Land ownership in Tanzania is primarily secured through a Right of Occupancy. For foreign investors, land can be occupied for investment purposes through:
Granted Right of Occupancy issued by the government.
Derivative Right granted by the Tanzania Investment Centre (TIC).
Sub-lease under an existing Granted Right of Occupancy.
Both the Right of Occupancy and Derivative Right can be granted for up to 99 years, with the possibility of renewal.
Acquiring Village Land for Investment
To acquire Village Land, investors must follow these steps:
Application Submission:
The investor applies through TIC, specifying the desired land location and the nature of the intended project, such as agriculture, agro-forestry, or real estate development.
Introduction to Local Authorities:
TIC introduces the investor to the relevant local authority where the land is located.
Village Approval Process:
The Village Council and Village Assembly deliberate on the land request, and the outcomes are submitted to the district authority.
Land Preparation:
This involves creating a village land use plan, surveying the land, assessing its value, compensating any affected third parties, and conducting an Environmental Impact Assessment if necessary.
District and Ministerial Approval:
The district authority reviews the village deliberations and forwards them to the Ministry of Lands, which then submits the case to the President for final approval.
Land Transfer Process:
Upon Presidential approval, Village Land Form No. 8 is issued, and the land is gazetted for transfer from Village Land to General Land after a 90-day objection period. If no objections are raised, the land is reclassified as General Land.
Issuance of Right of Occupancy:
The Assistant Commissioner for Lands prepares the necessary documentation, including Land Form No. 1, which is gazetted. Following approval by the National Land Allocation Committee, the investor pays the costs associated with preparing the Certificate of Occupancy, including a 10% facilitation fee to TIC.
Finalization:
The Certificate of Right of Occupancy is drafted, signed, and registered, with a copy issued to the investor. TIC then prepares and registers the Derivative Right and Leasehold Title.
Acquiring General Land for Investment
The process of acquiring General Land involves:
Identification and Designation:
The land intended for investment must be identified and designated.
Gazettement:
The Assistant Commissioner for Lands prepares Land Form No. 1, which is gazetted through a Government Notice.
National Land Allocation Committee Approval:
This committee convenes to discuss and approve the land allocation for the investor.
Issuance of Right of Occupancy:
Upon payment of the necessary fees by the investor, the Certificate of Right of Occupancy is prepared, signed, and registered, with a copy issued to the investor.
Finalization:
Similar to Village Land acquisition, TIC prepares and registers the Derivative Right and Leasehold Title, completing the process.
Insights for Investors Seeking Land in Tanzania
Investors looking to acquire land in Tanzania should be aware of the following:
Engage with Local Authorities Early:
Building relationships with local authorities is crucial for smooth land acquisition, especially when dealing with Village Land.
Understand the Legal Framework:
Familiarize yourself with the land laws and processes to avoid potential pitfalls.
Factor in Environmental and Social Assessments:
Conducting Environmental Impact Assessments and addressing any social concerns can expedite the approval process.
Work with TIC:
The Tanzania Investment Centre plays a pivotal role in facilitating land acquisition for foreign investors, providing guidance and ensuring compliance with statutory requirements.
Plan for Timelines:
The land acquisition process in Tanzania involves several steps and can be time-consuming. Investors should plan accordingly and be patient.
By understanding and adhering to the legal requirements, investors can successfully navigate the land acquisition process in Tanzania and secure land for their projects in this promising investment destination.
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