REPOA: Understanding Land and Investments in Tanzania

Dar es Salaam:

Land conflicts are not new to Tanzania, but with the increasing focus
on the formalization of land ownership and a drive to increase foreign
direct investments, tensionsover land and disputed land are
increasing.

In response to a growing body of research, commentary and media
reports documenting concerns over escalating levels of conflict
associated with land based investments, across Africa and more
specifically Tanzania, the Tanzanian Natural Resource Forum (TNRF) in
partnership with Research on Poverty Alleviation (REPOA) and the
International Institute on Environment and Development (IIED)
initiated a study on Understanding Land and Investments in Tanzania.

The purpose of the study was to establish whether there is appetite to
hold a public debate onhow to realise better land‐based investments in
Tanzania. It also aimed at identifying what would bethe discussion
issues and most appropriate mechanism to allow different actors from
different levelsto articulate their perspectives on land‐based
investments in Tanzania.

Along with the findings of the study and a stakeholder workshop on
land based investments in Tanzania, which was hosted by TNRF, IIEDand
REPOA was also held in Marchthis year, and both highlighted that any
dialogue on land must focus on the need for secure land tenure;
strengthened governance over land, natural resources and investments;
and Tanzania seeking quality foreign investments that contribute to
growth and development of the nation.

In aTNRF policy brief which came out from the scoping study and the
workshop, it is anticipated that if the dynamics behind these
conflicts arenot fully understood and resolved, there is the potential
for such conflicts to escalate in the face of growing pressure for
access to land based resources by investors, as Africa becomes
increasingly integrated into the global economy.

Global drivers for land demand in Africa include rising commodity
prices (particularly food, energyand certain metals) and the financial
and economic crisis of 2008. These drivers have resulted in increasing
numbers of foreign investors showing renewed interest in Africa’s land
based assets, although in most countries in Africa local investors are
the dominant players with respect to land related deals.

“There is an urgent needto understand, address and find solutions to
issues regarding land based investments in Tanzania,” states the
brief.

Due to complex and unclear land tenure laws and land acquisition
processes, security over land tenure at the village level is minimal
at best, leaving communities vulnerable to have their land “taken” for
investment purposes.

Whether the investment followed proper procedure or not communities
tend to lose out on both rights overland and meaningful compensation
for this loss. Land laws are cumbersome,complex and even
contradictory, leading to the question of whether there really is land
tenure security in Tanzania.The brief goes on to emphasise that
information about Land Acquisitionsand Investments should be more
public,accessible, accurate and transparent.

Despite the obvious challenges with land and investment, the size and
reasons behind the challenges are not well understood. “This is mostly
due to a generallack of information about how much landis really
‘available,’ clear procedures andtransparency in the investment and
landacquisition process in Tanzania,” states the brief

The Tanzanian government is activelyseeking investors in agriculture
and othersectors as part of its development and economic strategies.

This is based on anassumption that there is an abundance of land
available for investment in Tanzania.

Yet, the amount of land actually available is not all that clear, nor
is how much land is acquired by local or foreign investors each year.

Keeping investors accountable without publically accessible
information regarding investments is not possible. Likewise, it’s
unattractive for investors to engage in Tanzania without understanding
all the possible investment opportunities (i.e. land) available.

The Tanzanian Investment Centre developed a Land Bank to ease land
acquisition processes for investors. However, the current situation in
land administration is such that information about land is either
unavailable or contested, and therefore remains a challenge for the
initiative to serve its purpose.

Additionally, growth and development strategies also do not adequately
address land or the value of citizens’existing and
potentialcontribution to growth.

MKUKUTA recognizes that 80 percent of Tanzania’s labour force is
supported by agriculture, mainly small-scale farming. Yet, it focuses
on strategies (e.g. Agricultural Sector Development Program and Kilimo
Kwanza) that look to reduce dependence onrain-fed agriculture through
modernization and commercialization of private sectorbased small to
large-scale agriculture.

The National Land Use Framework Policy2009-2029 proposes an increase
ofcommercial farming and ranching land from2 percent to 18 percent.

And up to 12 million hectaresof prime grazing and settlement land
isslotted for replacement by ranches. These strategies do not
recognize that small-scale farmers and pastoralist are also investors,
and there is no plan to support micro-investment opportunities that
encouragethe growth and expansion of those who provide food
andimportant resources to the national economy.

Today, with issues of climate change and a growing population,
existing strategies may not be sustainable or realistic. Local
livelihood development opportunities,
And local adaptive capacity of small-scale agriculture and livestock
producers need to be considered and emphasized in development
priorities. But mostimportantly, land, the number one ingredient, must
sit at the centre of strategies for Tanzania toachieve its sustainable
development goals.

The brief recommends that governance over land and land tenure in
Tanzanianeeds to be addressed and improved, as well as the investment
setting. There are a number of international instruments and
initiatives that could be leveraged to encourage investors—both
national and foreign—to act more responsibly inmatters associated with
land acquisition. Where local andnational governance fails, these
instruments can providemechanisms to pressurize business and its
investors, ifnot legal action. These could include existing
frameworksdeveloped by UN, OECD and the African Union.

The brief further recommends that Tanzaniacould also strengthen
existing national instruments for regulating corporate behaviour, but
also promote existing quality investments and seek opportunities for
sustainable financing activities. Investments should be seen as an
opportunity to Tanzanians, but they will only be viewed that way if
they are transparent, fair and actually benefiting Tanzanian citizens.

The many and often divergent interests in land need tocome together
and engage in open and honest dialogue about the land crisis in
Tanzania, and citizens must be anintegral part of this dialogue.

The END