Agricultural Land Tanzania: How Citizens and Foreign Investors Secure a Farm
How does an investor secure agricultural land in Tanzania? On the Mainland, citizens can hold village land through the village council or a granted right of occupancy on general land. A foreign-majority company may hold land only for investment approved under the Investment and Special Economic Zones Act, usually as a TISEZA derivative right. Village land must first become general land. Zanzibar runs a separate leasehold system.
Agricultural land in Tanzania is not bought outright. All land on the Mainland is public land held by the President as trustee, and an investor holds a right to occupy it. Which right you can hold depends on who owns your company, which category the land sits in and what you plan to grow.
This guide covers the routes, costs and approvals, with a worked example for a 500 hectare farm. For the instruments themselves, read our guides to derivative rights and investor leases and to which land instrument you hold.
What the law says
Two statutes govern Mainland land. The Land Act, Cap. 113 covers general and reserved land. The Village Land Act, Cap. 114 covers land managed by village councils. The investment rules come from the Investment and Special Economic Zones Act, 2025 (Act No. 6 of 2025).
- Section 4(4) of the Land Act divides public land into general land, village land and reserved land.
- Section 19(1) recognises two rights to occupy: a granted right of occupancy and a derivative right carved out of one.
- Section 19(2) limits non-citizens, including companies with majority non-citizen ownership, to three things. These are a right of occupancy for investment approved under the 2025 Act, a derivative right for such an investment, or an interest under a partial transfer by a citizen into a joint venture.
- Section 20(1) says a non-citizen shall not be allocated or granted land unless it is for investment purposes under the 2025 Act. Section 20(4) treats a company with majority non-citizen shareholders as a foreign company.
- Section 22(1)(e) caps a granted right of occupancy at 99 years. Section 33 lets the Minister charge a premium on grant, and section 35 imposes annual land rent.
One trap sits in the statute books. The Revised Edition 2023 printed by the Attorney General's Office still names the Tanzania Investment Centre in sections 19 and 20. Act No. 6 of 2025 substituted the Tanzania Investment and Special Economic Zones Authority (TISEZA) for the Centre. The TanzLII consolidation as at 30 June 2025 shows the amended text. Cite that version, and confirm it against the next official revision before relying on it in a filing.
Who should read this
Tanzanian agribusinesses scaling up, foreign investors planning estates or out-grower hubs, joint venture partners and lenders taking farmland as security.
The Mainland and Zanzibar run separate land laws. Nothing on a Mainland title or TISEZA derivative right gives any right over land in Unguja or Pemba.
What are the three land categories, and why do they matter for a farm?
The category decides who grants the right and how long the process takes.
| Category | Who manages it | Right an investor can obtain | Farm relevance |
|---|---|---|---|
| General land | Commissioner for Lands, under the Land Act | Granted right of occupancy up to 99 years, or a derivative right from a holder | The only category where a foreign company can hold a farm |
| Village land | Village council, with the village assembly | Customary right of occupancy (citizens only) or a derivative right from the council | Most unused arable land sits here |
| Reserved land | Sector authorities (forests, parks, roads, hazardous land) | Generally not available for farming | Check boundaries before any survey |
Can a foreign investor hold agricultural land in Tanzania?
Yes, but only for approved investment and only through the routes in section 19(2). A foreign-majority company cannot take a customary right of occupancy. Section 18(1)(a) of the Village Land Act limits customary rights to citizens, groups of citizens and citizen-majority companies.
The practical routes are a TISEZA derivative right, a granted right of occupancy for an approved investment, or a joint venture into which a citizen partially transfers a right. Section 19(3) exempts some not-for-profit bodies, foreign governments and international organisations, subject to conditions.
The US State Department's 2026 Investment Climate Statement describes the same position from the investor's side. It notes that TISEZA keeps a land bank for investors. Our explainer on whether foreigners can own land covers non-farm uses.
How does the TISEZA derivative right route work?
Section 20(2) of the Land Act says land designated for investment is identified, gazetted and allocated to TISEZA, which creates derivative rights for investors. Section 23(10) of the 2025 Act lets TISEZA lease land to an investor for a specified period or grant it under a derivative right, subject to the Land Act.
TISEZA's land acquisition page sets out the general land sequence:
- Government identifies and designates the land for investment.
- The zonal Assistant Commissioner for Lands prepares Land Form No. 1, which is gazetted by Government Notice.
- The National Land Allocation Committee approves allocation to the investor.
- The investor pays the certificate of occupancy costs on TISEZA's behalf, plus a 10 percent facilitation fee.
- The certificate of occupancy is issued and registered in TISEZA's name.
- TISEZA and the investor sign the derivative right and an application for a leasehold title, which TISEZA registers.
The page says rights may run up to 99 years and are renewable. Parts of it still say TIC.
Two conditions follow the right. Under section 24(2) of the 2025 Act, TISEZA may revoke a derivative right if the investor abandons the project for twelve months or more. Under section 20(5) of the Land Act, the land reverts to TISEZA on expiry or termination.
Treat three TIC-era points as unconfirmed: the derivative right term of ten days less than the head right, whether a farm needs a certificate of incentives with its TZS 1,500,000,000 foreign minimum capital (TZ-02), and the base for the 10 percent fee (F0473). See our TISEZA registration guide.
How is village land transferred to general land?
Section 4 of the Village Land Act controls the transfer. The President initiates it, and section 4(2) counts investments of national interest as a public interest.
- Notice. The Minister publishes a Gazette notice and sends it to the village council. It names the land, its extent, the reasons and a date not less than 60 days after publication.
- Representations. The village council informs occupants, who may make representations to the Commissioner and the council.
- Approval threshold. Under section 4(6), the village assembly approves or refuses a transfer of less than 250 hectares on the council's recommendation. Above 250 hectares, the Minister decides by resolution after considering the village assembly and district council.
- Compensation first. Section 4(8) bars the transfer until the village council and Commissioner agree the type, amount, method and timing of compensation.
- Effect. The President may then transfer the land. Under section 4(13) the transfer takes effect 30 days after Gazette notification.
In TISEZA's sequence, the investor funds the village land use plan, survey, valuation, compensation and any environmental assessment. The district authority approves and the Minister refers the case to the President. TISEZA's page then describes a 90-day wait after Village Land Form No. 8 is gazetted, which differs from the Act, so confirm current practice.
A 500 hectare farm crosses the 250 hectare line, so the Minister's resolution applies. Our guide to change of land use explains why planning consent is a separate step.
Can an investor lease or sublease farmland from a citizen?
A lease is a derivative right. Section 2 of the Land Act defines a lease to include a sublease of a right of occupancy, registered or not. A citizen may lease titled land from another citizen, with stamping and registration.
For a foreign-majority company the position is narrower. Section 19(2) allows it a derivative right only for investment approved under the 2025 Act. A private lease from a citizen therefore needs that approval behind it. Section 23(8) of the 2025 Act lets investors use land outside the land bank, but a foreign investor must notify TISEZA first.
On village land, the village council grants derivative rights under section 32 of the Village Land Act. An application over 30 hectares or longer than ten years is Class C and needs village assembly confirmation and the Commissioner's advice.
Section 41(5) makes a disposition that needed approval but lacked it inoperative. Assigning a right granted less than three years earlier needs approval under section 41(2).
Which investor can use which route?
| Investor type | Village land | General land | Main approvals |
|---|---|---|---|
| Citizen or citizen-majority company | Customary right of occupancy, or a council derivative right (Class C over 30 ha or 10 years) | Granted right of occupancy up to 99 years; purchase or lease of an existing title | Village council and assembly; Commissioner for Lands; Registrar of Titles |
| Foreign-majority company | Not available until transferred to general land | TISEZA derivative right, or a right of occupancy for approved investment | TISEZA; Minister and President for transfers; Commissioner; Registrar |
| Joint venture with a citizen | Citizen partner may hold village land; foreign side cannot | Partial transfer by a citizen into the venture (s.19(2)(c)) | Approved investment under the 2025 Act; transfer approval |
| Zanzibari investor (Isles) | Right of occupancy under the Land Tenure Act, 1992 | Zanzibar land authorities; Land Transfer Board | |
| Non-Zanzibari investor (Isles) | Lease of public land under section 46 of the Land Tenure Act | ZIPA; Zanzibar land authorities; Land Transfer Board | |
A Tanzanian subsidiary of a foreign parent holding over half the shares is a foreign company. Our land occupation route finder walks through the same test.
What do land rent and the premium cost?
Every figure below comes from our fee register. Government charges are paid against the authority's GePG control number, and the amount on that control number governs.
| Register ID | Charge | Amount |
|---|---|---|
| F0456 | Land rent, commercial farms outside statutory urban boundaries | TZS 1,000 per acre a year |
| F0459 | Premium on grant of a right of occupancy | 0.25% of land value |
| F0462 | Registration of a certificate of title | 50% of annual land rent |
| F0463 | Registration of a transfer of a right of occupancy | 0.25% of consideration or value, whichever is greater |
| F0457 | Interest on late land rent | 0.5% a month after six months overdue; 1% a month after twelve months |
| F0471 | Chief Valuer approval of a valuation report | TZS 20,000 below TZS 100m; 0.01% or 0.02% of value above |
| F0473 | TISEZA issue of a derivative right | 10% of the charge paid to the Ministry of Lands for the title |
| F0474 | Annual land rent on a TISEZA derivative right | Rent assessed by the Commissioner plus 10% SEZ administration |
| F0477 | Stamp duty on conveyance of agricultural land | 0.5% of value from 1 July 2026 |
| F0478 | Stamp duty on a lease | 1% of the annual reserved rent |
Land rent inside urban boundaries is set per council and zone (F0453), so a farm near a town may pay more. Land rent bills and arrears are covered in our land rent and property rates guide.
Does a land bank help a farm investor?
Section 23(1) of the 2025 Act creates a land bank under TISEZA's management. It is a database of land available for investment, drawn from designated areas, land TISEZA acquires and privately held land. Land in the bank has usually cleared the category question.
The Ministry of Agriculture also has a mandate for agricultural land use planning. Its 2024/25 budget speech to Parliament lists that mandate and a block farm programme. We could not verify current hectare figures, so ask both for the live list.
When do water permits and an EIA apply to a farm?
Title gives no right to water. On the Mainland, abstracting or diverting water for irrigation needs a water use permit from the basin water board. The Pangani Basin Water Board describes the steps: a letter through the village chairperson, an application, public notice with 40 days for comments, a hydrological study for surface sources, then the board's decision. Charges are set per basin under the Water Resources Management (Fees Setting) Regulations, GN 825 of 2019 (F0522). Our water use permit guide has the full process.
Environmental review scales with size. The EIA and Audit (Amendment) Regulations, GN 474 of 2018 classify farms in the First Schedule:
| Activity | Type A (full EIA) | Type B1 (screening) | Type B2 (project brief) |
|---|---|---|---|
| Large scale cultivation | 100 ha or more | 50 to under 100 ha | 10 to under 50 ha |
| Large scale monoculture | 100 ha or more | 50 to under 100 ha | Under 50 ha |
| Irrigation and drainage, command area | 500 ha or more | 200 to 500 ha | Under 200 ha |
| Floriculture | 5 ha or more | 2 to under 5 ha | Under 2 ha |
Any project that resettles communities must attach a resettlement plan. NEMC fees are in register lines F0495 to F0499, with annual compliance fees for cultivation in F0509. Our EIA guide explains screening and the certificate.
How are compensation and resettlement handled?
Section 3(1)(g) of the Land Act commits the State to full, fair and prompt compensation when a right of occupancy is revoked or interfered with. For village land transfers, section 4(8) of the Village Land Act makes agreement on compensation a precondition. Section 4(11) lets the President direct that the incoming holder pay it.
In practice the investor funds valuation and compensation, and the Chief Government Valuer approves the report (F0471). Map customary holders, farmers without papers and grazing users early. Our guide to land compensation in mining areas explains valuation heads that apply to farms too.
Land disputes go to the land forums, including the District Land and Housing Tribunals and the High Court Land Division. Boundary, allocation and compensation disputes are matters for an advocate.
Zanzibar: a separate land system
Land is not a Union matter. Zanzibar's Land Tenure Act, No. 12 of 1992 declares in section 3(2) that public land is vested in, and at the disposition of, the President of Zanzibar. Rights of occupancy go to Zanzibaris over eighteen under sections 8(1)(a) and 24(1).
- Non-Zanzibaris lease. Section 46 lets the Minister lease public land without a right of occupancy to any person, Zanzibari or non-Zanzibari. The 1992 text caps these leases at 49 years in section 47(1), renewable. The InforMEA record shows a 2003 amendment, and practitioners such as RIVE & Co report terms up to 99 years. Confirm the current maximum.
- Agricultural holdings. Section 44(1) bars the sale of a granted agricultural holding, including the three-acre plots distributed in 1966.
- Transfer consent. Under sections 3 and 4 of the Land Transfer Act, No. 8 of 1994, a permanent transfer or a lease over three years has no effect without Land Transfer Board consent.
- Investment desk. ZIPA registers the investment and coordinates land for approved projects, but the Zanzibar land authorities grant the lease. Stamp duty is a ZRA matter, and water rights sit with the Zanzibar Water Authority.
Compare the two systems in our Mainland vs Zanzibar land rights guide and our note on buying property in Zanzibar.
Worked example: a 500 ha farm on a TISEZA derivative right
A foreign-majority company wants 500 hectares of rain-fed land on general land outside any urban boundary. Five hundred hectares is about 1,235.53 acres. We assume the Chief Government Valuer values the land at TZS 1,000,000,000, which is illustrative only.
| Item | Basis | Amount (TZS) |
|---|---|---|
| Premium on grant | F0459: 0.25% of 1,000,000,000 | 2,500,000 |
| First year land rent | F0456: 1,235.53 acres x 1,000 | 1,235,527 |
| Registration of title | F0462: 50% of annual rent | 617,764 |
| TISEZA facilitation fee | F0473: 10% of the Ministry charges above (assumed base) | 435,329 |
| Approval of valuation report | F0471: 0.01% of value | 100,000 |
| EIA application and scoping report | F0495 | 200,000 |
| EIA review, Type A, assumed project cost of TZS 4bn | F0499: band TZS 1bn to 4.99bn | 6,000,000 |
| Year one total of known government charges | 11,088,620 |
From year two, land rent is TZS 1,235,527. If the 10 percent administration charge in F0474 applies to this farm, the bill becomes TZS 1,359,080. Rent unpaid for seven months attracts interest of about TZS 6,178 a month under F0457.
A citizen company on the same land pays the same premium, rent and registration, without the TISEZA charges. If it buys an existing titled farm for TZS 1,000,000,000, it also pays stamp duty of TZS 5,000,000 (F0477) and transfer registration of TZS 2,500,000 (F0463).
Survey, water charges, compensation and annual NEMC fees are excluded because the register does not fix them for this case. They often exceed the fees above. Professional fees for advocates, surveyors, valuers and Zatra are separate.
What to do now
- Fix your ownership test. Confirm whether the holding company is citizen-majority or foreign-majority under section 20(4), and plan any joint venture before land talks start.
- Classify the site. Get the land category, any existing title and a registry search before paying anyone. A village chairman's letter is not a title.
- Pick the route. Use the route table above to choose a customary right, a granted right, a TISEZA derivative right or a lease.
- Open the TISEZA file early. A foreign investor should notify TISEZA and ask for the land bank list, the approval route and the fee base.
- Budget compensation and survey. Commission a valuation for Chief Valuer approval and map every occupant and grazing user.
- Line up water and environment. Apply to the basin water board and register the project with NEMC in parallel with the land file.
- Diarise rent. Pay land rent every year against the control number to avoid F0457 interest and revocation risk.
- Brief an advocate. Conveyancing, lease drafting, registration and any dispute need a Tanzanian advocate.
Key dates and deadlines
| Event | Time limit or date | Source |
|---|---|---|
| TISEZA replaces TIC and EPZA | 1 July 2025 | Act No. 6 of 2025 |
| Stamp duty on agricultural land conveyance rises to 0.5% | 1 July 2026 | Finance Act 2026 (F0477) |
| Notice before a village land transfer | Not less than 60 days | Village Land Act s.4(3) |
| Transfer takes effect | 30 days after Gazette notification | Village Land Act s.4(13) |
| Water permit comments | 40 days after notice | Pangani Basin Water Board |
| Late rent interest starts | After 6 months unpaid; higher after 12 | Land Act s.35(11) (F0457) |
| Abandonment of a derivative right | 12 months or more | 2025 Act s.24(2) |
| Assignment needing approval | Head right granted less than 3 years earlier | Land Act s.41(2) |
How Zatra helps
Zatra's investment advisory team maps the land route for a farm project, runs the TISEZA file and coordinates surveyors, valuers and the basin and NEMC applications. Our due diligence team checks titles, rent arrears and occupants before money moves. Our TISEZA registration service handles the investor file, and the land acquisition hub gives background.
Government fees are paid to the Ministry of Lands, TISEZA, NEMC, the basin board or TRA at the official rate against the authority's control number. They are separate from Zatra's professional fee, which we quote in writing before work starts. Zatra does not decide or guarantee any authority's outcome. The authorities decide.
Conveyancing, registration of instruments, compensation disputes, tribunal or court proceedings and legal opinions on title are matters for an advocate. We work with your advocate or introduce one. To start, contact Zatra with the district, the hectares and the ownership of your company.
Sources and status
Accurate as at 7 November 2026.
- Land Act, Cap. 113, consolidated as at 30 June 2025. TanzLII, 30 June 2025. Accessed 7 Nov 2026.
- The Land Act, Cap. 113 R.E. 2023. Office of the Attorney General, 2023 edition, posted 2026. Accessed 7 Nov 2026.
- Village Land Act, Cap. 114, as at 31 December 2023. TanzLII, 31 December 2023. Accessed 7 Nov 2026.
- Investment and Special Economic Zones Act, 2025. TISEZA, English text gazetted 6 January 2026. Accessed 7 Nov 2026.
- Land acquisition. TISEZA, page current 2026. Accessed 7 Nov 2026.
- EIA and Audit (Amendment) Regulations, GN 474 of 2018. NEMC, 31 August 2018. Accessed 7 Nov 2026.
- Water Resources Management (Fees Setting) Regulations, GN 825 of 2019. TanzLII, 8 November 2019. Accessed 7 Nov 2026.
- How can I apply for a water use permit. Pangani Basin Water Board, page current 2026. Accessed 7 Nov 2026.
- Hotuba ya Wizara ya Kilimo 2024/25. Ministry of Agriculture via Parliament of Tanzania, 2 May 2024. Accessed 7 Nov 2026.
- Land Tenure Act, No. 12 of 1992 (Zanzibar). FAOLEX, Act dated 29 January 1993. Accessed 7 Nov 2026.
- Land Transfer Act, No. 8 of 1994 (Zanzibar). FAOLEX, 1994. Accessed 7 Nov 2026.
- Land Tenure Act of 1992, legislation record. InforMEA (UNEP), record current 2026. Accessed 7 Nov 2026.
- 2026 Investment Climate Statements: Tanzania. US Department of State, September 2026. Accessed 7 Nov 2026.
- Registering a Land Interest in Zanzibar. RIVE & Co, 29 September 2025. Accessed 7 Nov 2026.
Figures to confirm before you act
- Section numbers were read in the TanzLII consolidations. Check them against the official revised text, which still names TIC in Land Act sections 19 and 20.
- Whether TISEZA still grants derivative rights for ten days less than its head right, and the term it now uses.
- Whether a farm needs a TISEZA certificate of incentives and the TZS 1.5bn foreign minimum capital (TZ-02), and the base for the 10% fee (F0473).
- Whether the 10% administration charge in F0474 applies to a derivative right outside a special economic zone.
- The waiting period after a village land transfer notice: 60 plus 30 days in the Act against 90 days on TISEZA's page.
- Land rent (F0456) and premium (F0459) rates, which can change from 1 July each year; NEMC annual fees above 999 acres (F0509); the survey scale for 500 ha (F0468); basin water charges (F0522).
- The maximum Zanzibar lease term after the 2003 amendment, and current ZIPA, Land Transfer Board and ZRA charges.
- The land value of TZS 1bn and project cost in the worked example are illustrative.
This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.
Frequently asked questions
Can a foreign individual, rather than a company, hold a farm on the Mainland?
The same section 19(2) limits apply to individuals. A non-citizen can hold land only for investment approved under the 2025 Act. In practice investors use a Tanzanian company so the project, permits and title sit in one entity. Ask TISEZA which vehicle it will approve.
Can farmland held under a derivative right be used as loan security?
Yes, with consent. TISEZA charges a fee to consent to a derivative right being used as security (NEW-05-22), and the mortgage is registered with the Registrar of Titles (F0464). Lenders usually want the head title, the derivative right and current rent receipts.
What happens to a farm if the foreign shareholding rises above half?
The company becomes a foreign company under section 20(4). A customary or ordinary granted right it holds may then conflict with section 19(2). Plan the restructuring with an advocate and TISEZA before any share transfer, not after.
Do out-grower schemes need the farmers' land to be transferred?
No. Out-growers keep their own rights and sell produce under contract. The investor needs land only for its nucleus estate, factory or collection centres. Crop board rules and any cooperative marketing system still apply to the produce.
How long does a village land transfer take?
The Act sets minimum periods, not a total. Notice runs at least 60 days, and the transfer takes effect 30 days after Gazette notification. Survey, valuation, compensation, assembly meetings and presidential approval usually take far longer, often more than a year.
Is there a ceiling on how much land one investor can hold?
We found no general statutory cap for investors in the Land Act text we read. The approving authorities consider size, and Village Land Act thresholds change who approves. Expect scrutiny of large requests and of land left undeveloped.
Can a Mainland company use its Mainland title to secure land in Zanzibar?
No. A Mainland right of occupancy or derivative right has no effect in Zanzibar. The company must register its investment with ZIPA, take a Zanzibar lease and obtain Land Transfer Board consent where it applies.
Sources & regulators
Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.
- Land Act, Cap. 113, consolidated as at 30 June 2025: TanzLII, consolidated text as at 30 June 2025 (amendments by Act No. 6 of 2025). Accessed 2026-11-07.
- The Land Act, Cap. 113 R.E. 2023: Office of the Attorney General, Revised Edition 2023, posted 2026. Accessed 2026-11-07.
- Village Land Act, Cap. 114: TanzLII, consolidated text as at 31 December 2023. Accessed 2026-11-07.
- Investment and Special Economic Zones Act, 2025 (Act No. 6 of 2025): TISEZA, Act dated 4 March 2025, English text gazetted 6 January 2026. Accessed 2026-11-07.
- Land acquisition: TISEZA, page current 2026. Accessed 2026-11-07.
- Environmental Management (EIA and Audit) (Amendment) Regulations, GN 474 of 2018: NEMC, published 31 August 2018. Accessed 2026-11-07.
- Water Resources Management (Fees Setting) Regulations, GN 825 of 2019: TanzLII, 8 November 2019. Accessed 2026-11-07.
- How can I apply for a water use permit: Pangani Basin Water Board, page current 2026. Accessed 2026-11-07.
- Hotuba ya Wizara ya Kilimo 2024/25: Ministry of Agriculture via Parliament of Tanzania, 2 May 2024. Accessed 2026-11-07.
- Land Tenure Act, No. 12 of 1992 (Zanzibar): FAOLEX, Act dated 29 January 1993, copy current 2026. Accessed 2026-11-07.
- Land Transfer Act, No. 8 of 1994 (Zanzibar): FAOLEX, Act No. 8 of 1994, copy current 2026. Accessed 2026-11-07.
- Land Tenure Act of 1992, legislation record: InforMEA (UNEP), record current 2026, lists the 2003 amendment. Accessed 2026-11-07.
- 2026 Investment Climate Statements: Tanzania: US Department of State, September 2026. Accessed 2026-11-07.
- Registering a Land Interest in Zanzibar: RIVE & Co, 29 September 2025. Accessed 2026-11-07.
Disclaimer
This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.