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Tanzania presents abundant investment opportunities, including in sectors where land is an important resource, such as agriculture, projects and infrastructure, real estate and construction, manufacturing, and other capex-heavy industries.
To capitalise on these opportunities, investors must ensure that they have taken the necessary steps to secure their land rights. Whether through acquiring property or entering into long-term leases, having a legally recognised and secure interest in the underlying land is essential. This safeguards the investor’s ability to benefit from the land, including mortgaging and transferring it, land mitigates risks associated with competing claims and provides a solid foundation for long-term success. In some cases, a good title underpins the bankability of an entire project, affecting its creditworthiness and financing risks.
This article highlights some critical factors foreign investors should consider when navigating the complex legal and regulatory framework relating to land ownership and use in Tanzania. Without valid land rights, investors face significant risks, including uncertainty in project implementation, the inability to secure financing, and potential legal disputes.
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Should you have any questions regarding this article and investing in Tanzania do not hesitate to contact Shemane Amin.
Sophia Issa – Principal Associate