Land acquisition and investment by foreigners in Tanzania

Introduction

Land acquisition refers to the process of legally obtaining ownership or rights to use a piece of land in Tanzania. However, navigating the legal landscape of land acquisition in Tanzania can be complex, particularly for foreigners who are restricted from acquiring land.

LAWS GOVERNING LAND ACQUISITION

Tanzania’s land laws are primarily governed by the Land Act of 1999 and the Village Land Act of 1999. The Constitution of Tanzania also plays a significant role in shaping land ownership rights. Under Tanzanian law, all land is public and vested in the President as a trustee for the citizens. This framework limits land ownership by foreigners, but it does provide avenues for land acquisition under specific conditions.

EXCEPTIONS TO LAND ACQUISITION BY FOREIGNERS

In general, the law prohibits foreigners from owning land in Tanzania. However, there are exceptions:

1. Derivative Rights: Foreigners can acquire land through a derivative right, which includes leases or licenses granted by the government. These rights are typically granted for investment purposes.
2. Tanzania Investment Centre (TIC) Certificate: Foreign investors who have obtained a TIC certificate can acquire land for investment purposes. The Tanzania Investment Centre acts as a facilitator and can grant a derivative right for land use.
3. Joint Ventures with Tanzanian Citizens: Foreigners can also acquire land through joint ventures with Tanzanian citizens. In this case, the land may be registered in the name of the Tanzanian entity or joint venture, with the foreign partner holding an interest.

PROCEDURES OF LAND ACQUISITION BY FOREIGNERS

1. Identify Suitable Land: The first step is to identify the land that aligns with the intended investment. This can be either general land (administered by the Commissioner for Lands) or village land (managed by Village Councils).
2. Conduct Due Diligence: Due diligence is crucial to ensure the land is free from disputes or encumbrances. This includes conducting search of the land title checking for any existing encumbrances or claims and ensuring compliance with zoning regulations.
3. Apply for a TIC Certificate: If the investment qualifies, the investor should apply for a Tanzania Investment Centre (TIC) certificate which facilitates land acquisition. The application involves submitting a detailed business plan, proof of financial capacity, and other relevant documents.
4. Obtain Land Lease or Derivative Right: Upon approval, the investor can obtain a lease or derivative right from the government. The lease term typically ranges from 33 to 99 years, depending on the nature of the investment.
5. Register the Lease: The final step is to register the lease or derivative right with the Ministry of Lands, Housing and Human Settlements Development. This registration makes the lease legally binding and enforceable.

CONSIDERATIONS IN LAND ACQUISITION BY FOREIGNERS

1. Environmental Regulations: Tanzania has strict environmental regulations, especially for land used in agriculture, mining or tourism. Compliance with these regulations is essential to avoid legal complications.

1. Community Relations: Involving local communities in the investment process is crucial. This includes understanding and respecting customary land rights particularly in village lands.

CONCLUSION

Land acquisition in Tanzania offers lucrative opportunities for foreign investors, but it also requires a thorough understanding of the legal landscape. By following the proper legal channels and engaging with local experts, foreign investors can successfully acquire and utilize land for their investment projects. As the Tanzanian government continues to encourage foreign investment, understanding these legal frameworks will be increasingly important for potential investors.

DISCLAIMER

This guide is intended for informational purposes only and should not be construed as legal advice. For specific legal guidance or to ensure compliance with applicable regulations, please consult us at info@gerpatsolutions.co.tz , +255 742 826 955. You can also visit our website for more Articles at www.gerpatsolutions.co.tz .