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The Scramble for Land and Natural Resources in Africa Read chapter Read first chapter

2019 | OriginalPaper | Chapter

Land-Based Investments in Tanzania: Legal Framework and Realities on the Ground

Authors : Godfrey Eliseus Massay, Telemu Kassile

Published in: Reclaiming Africa

Publisher: Springer Singapore

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Abstract

Tanzania experienced a severe socio-economic crisis in the 1970s and 1980s. In an attempt to turn things around and accelerate economic growth, the government embarked on a broad range of policy, legislation, and institution reforms, which opened doors for foreign direct investments (FDIs). Further initiatives have been taken to create an enabling environment for investments to flourish in the country. This chapter provides highlights and an analysis of the legal framework governing investment in Tanzania, discusses the context of investment within the existing legal framework, provides an overview of land acquisition procedures and gives analysis of some land deals. The findings show that mixed procedures, some of which are not guided by laws, are currently used to acquire land for investment in Tanzania. Moreover, land acquisition and compensation practices are poor and have flaws in the way community consultations are carried out.

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previous chapter The Scramble for Agricultural Land in Senegal: Land Privatisation and Inclusion?
next chapter Accumulation by Dispossession and Resistance in Uganda
Footnotes
1
An earlier version of this chapter appeared as a Working Paper of the Land Deal Politics Initiative (LDPI); see https://​www.​iss.​nl/​fileadmin/​ASSETS/​iss/​Research_​and_​projects/​Research_​networks/​LDPI/​LDPI_​WP_​56.​pdf. The authors wish to acknowledge the LDPI collective for its support in preparing the initial paper for publication. In particular, the authors acknowledge with gratitude the helpful comments made by Prof. Ruth Hall, Happiness George and Emmanuel Sulle.
 
2
For example, parastatal reforms were designed to diminish the dominance and monopoly of state-owned enterprises, as part of wider structural adjustment initiatives. Reforms also included allowing the private sector to compete in marketing and processing cash crops in the increasingly liberalised market environment. Revisions in the land law rules enabled long-term leasehold property rights for up to 99 years for domestic and foreign investors. Financial reforms enhanced the investment climate, enabling 26 licensed banks (foreign and domestic) to operate in the country (FAO 2012).
 
3
President Nyerere, while addressing the meeting of the Association of Chambers of Commerce of Eastern Africa on 11 February 1963, said ‘the government wishes to work with private investors for the development of Tanganyika’; and again, on 11 February 1965, while laying the foundation stone for the ENI Oil Refinery at Kigamboni, Dar es Salaam, he said: ‘[t]he government of Tanzania is determined to have an oil refinery in Tanzania rather than continue to import the end products of crude oil, and therefore we have worked hard to interest those who might be able to undertake such an investment under conditions which would benefit Tanzania’ (cited in Maina 1994: 5–6).
 
4
Amended laws include the Income Tax Act, 1973, Customs Tariff Act, 1976, Sales Tax Act, 1976, and Immigration Act, 1995.
 
5
The Investment Act of 1997 and the Financial Laws (Miscellaneous Amendments) Act of 1997.
 
6
S. 2 of the Land Ac of 1999 states that general land means all public land, which is not reserved land or village land and includes unoccupied or unused village land.
 
7
Section 6(c) of the Investment Act of 1997.
 
8
The RUBADA was established by the The Rufiji Basin Development Authority Act of 1975.
 
9
According to an anonymous interview, ‘[a]s far as I know, there is no single CDM project approved yet in Tanzania. As far as I know, GRAS has so far sold carbon certificates on the voluntary market instead. However, I think the company’s application for being accepted as CDM project might be pending at the respective Tanzanian government authority’ (19 February 2013).
 
10
REDD is an effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. REDD + goes beyond deforestation and forest degradation, and includes conservation, sustainable forest management and enhanced forest carbon stocks; see http://​www.​un-redd.​org.
 
11
The Village Land Act of 1999 vests administrative powers of village land under the Village Council. Village land is one of the three categories of land in Tanzania, the others being general and reserved land.
 
12
This section is read together with amendment made under Sections 2 and 4 of Act 12 of 2004.
 
13
See http://​www.​epza.​co.​tz, accessed 14 August 2012.
 
14
Most villages are not made aware that when the land is taken by an investor it has to be transferred to general land, which comes under the control of the Commissioner of Lands and not Village Council.
 
15
Land Act and Village Land Act of 1999, Investment Act of 1997, Road Act of 2007, Mining Act of 2010, and Town Planning Act of 2007, among others.
 
16
Article 24 of the Constitution of the United Republic of Tanzania of 1977, as amended periodically.
 
17
Specifically, nine cows died due to consumption of water from the ponds which contained water mixed with chemicals from the mine (LHRC 2012).
 
18
See Matondi et al. (2011), for more detailed information.
 
19
SIDA recently commissioned a study to investigate on EIA process of Agro Eco Energy.
 
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Metadata
Title
Land-Based Investments in Tanzania: Legal Framework and Realities on the Ground
Authors
Godfrey Eliseus Massay
Telemu Kassile
Copyright Year
2019
Publisher
Springer Singapore
Book
Reclaiming Africa

Print ISBN: 978-981-10-5839-4

Electronic ISBN: 978-981-10-5840-0

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-981-10-5840-0_8