• The meaning of a Derivative Right of Occupancy.
• The process of Acquiring Land Ownership by a Foreigner under Derivative Right of Occupancy.
• The Application Requirements.
• The Required Documents.

Overview
For avoidance of doubt, the Land Act provides that all land in Tanzania is public land vested in the President as a trustee on behalf of all citizens. This means foreigners cannot directly own land in Tanzania, however, a non-citizen shall not be allocated or granted land unless it is for investment purposes under the Tanzania Investment Act.
In Tanzania, the general rule is that the ownership of land by foreigners is restricted, with exceptions made for investment purposes. In such cases, the Tanzania Investment Center (TIC) is responsible for granting Derivative Right of Occupancy for the land.

The meaning of a Derivative Right of Occupancy?
Derivative Right of Occupancy encompasses various rights derived from ownership, such as leases, subleases, usufructuary rights, and any similar interests allowing the occupation and use of land.

The Process of Acquiring Land Ownership by a Foreign Individual under the Derivative Right of Occupancy.
The process for a foreigner to acquire land suitable for their needs involves several steps. Initially, the individual must identify land that aligns with their requirements, although it’s important to note that the Tanzania Investment Center (TIC) typically handles land designation. However, the foreigner must first locate suitable land.
Once suitable land is identified, the next step is to apply for a certificate of incentives from the TIC, as outlined under the Tanzania Investment Act.

The Application Requirements:
• Business enterprise details such as name, legal form, bankers, directors or partners, and shareholders.
• Qualifications and experience of the project management.
• Nature of proposed business activity and its location.
• Proposed capital structure, investment amount, and projected growth over the next five years.
• Financing plan and evidence of sufficient capital.
• Undertaking to implement the project as projected.
• If the TIC determines that the applicant meets all criteria, they will issue a certificate of incentives.
Following this, the applicant must apply for the right of occupancy to the commissioner for land, attaching the certificate of incentive.

The following are the Required Documents in the Application.
• Application Form.
• Two-Passport Size Photos.
• Payment of the required fee,
• Signature of the applicant or their authorized representative.
• The Application will be sent to the Commissioner or an authorized officer.
• Provision of any prescribed or requested information.
• Consent from local authorities if necessary.
• The Application will be accompanied by a Certificate of Approval from the TIC and any other required documentation.
• The commissioner for land will then review the application.
• Approval from the Commissioner,
• The office will then gazette the application, indicating the applied-for land for a prescribed period.
• If no objections are raised during this period, the commissioner will designate the land to the TIC.
• TIC will then lease the land to the foreigner under the derivative right of occupancy, typically for a period not exceeding 99 years, as per the Land Act.

Conclusion
The process of acquiring land under the derivative right of occupancy in Tanzania demands careful navigation through legal procedures overseen by the Tanzania Investment Center and the Commissioner for Land. From identifying suitable land to securing necessary certifications and approvals, each step requires meticulous attention to detail and compliance with relevant laws and regulations. While this process may appear complex, it serves to ensure transparency, security, and sustainable development in land ownership and investment within Tanzania. By following these procedures diligently, foreign investors can establish a solid foundation for their ventures, contributing positively to Tanzania’s economic growth and development goals.

Disclaimer: This article is for informational purposes only and should not be construed as legal advice. It is recommended to consult with a qualified legal professional for advice specific to your situation.

Written by Jacqueline Hima.