Understanding Land and Investmentsin Tanzania

REPOA, 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, tensions over 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¡ªboth national and foreign¡ªto 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