from: Yona Maro
date Oct 16, 2009 12:45 PM

TZ LAND

As you are aware, Tanzania had been practicing a communal land policy where all titles to land belonged to the state and by extension, the President who has the right to grant usage of land for whatever purpose. The country has made strides in allowing private ownership of land but the laws discriminate against foreigners and will not allow foreigners to own land.

Foreigners in TZ

When TZ refers to foreigners, they mainly refer to Kenyans who are currently the biggest foreign investors in the country. They treat Kenyans with suspicion with the general feeling that Kenyans are benefitting more from the EAC than them. They also claim that Kenyans have had a liberalized economy for longer thus are used to competition unlike them and hence they need to protect themselves from being outdone by their Kenyan counterparts in their own country.

However, many foreigners own land in TZ and the government is aware of that. The government knows these are investors who need land to put up investments that will create employment. The hardest part is acquiring the land but after you have it and put in an investment, nobody cares anymore where you come from as they are happy you are creating jobs.

Political Support for Foreign Investments

I stayed in a hotel in their political capital, Dodoma where the politicians come for a drink after their sessions. A Kenyan I met there told me whenever he teases the MPs he wants to pack his bags and return to Kenya after seeing heated debates in parliament of the increasing stronghold of foreigners in their economy, they always play down the debate as nothing more than that. They also admit they can never hinder foreigners investing there in land or whatever since the locals are getting jobs. In one instance, a minister defended foreign investors in TZ saying its common knowledge they work harder and create jobs than their fellows and dared any MPs in the chamber who thinks otherwise to say so, obviously, no one challenged that observation.

How They Do It

What most foreigners do is enter into a partnership with a local citizen. They have lawyers draft agreements of their shares in the property. When you buy land and invest in it, the title reads the Tanzanian while the investments could be jointly owned or yours. Your assurance is the fact that the lawyer recognizes you won the land but again its risky as the government recognizes your partner only in the records. However, this arrangement has worked for thousands who have such an arrangement and reaped from their investments.

Land Value

The value of land is fairly cheap. In a bid to help citizens acquire bank loans, the central bank of TZ recently put the value of an acre of land at US$200 (KES15,000). However, the prices vary depending on the location.

1. Dar- es Salaam, Arusha and Mwanza- These are more developed towns with enterprising people. Land goes for between TZ SHS. 3M to 9M. if you have a TZ guy negotiate on your behalf as if he/ she is buying for himself/ herself, the price will be cheaper by as much as a half if you did it yourself.

I remember I had an offer for an acre in Bagamoyo, a tourist resort town, which is 60km from Dar for TZ SHS 3M. Its on a tarmac road and next to a beach surrounded by top tourist hotels. You won’t get such bargains in Kenya.

2. Dodoma, Morogoro- An acre is between TZSHS.150,000 to 200,000. When there, there was land at Morogoro, which is 150km from Dar going for TZSHS 150,000 per acre and it’s a hilly rainy area with elec.

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subject LAND BUYING IN TANZANIA