Critical Analysis of Legal and Practical Challenges to the Success of Land Banking in Tanzania

Abstract

This article provides a critical legal analysis of the challenges hindering the effective implementation of land banking in Tanzania. While Section 18(1) of the Tanzania Investment Act [Cap. 38 R.E. 2022] introduces the concept of land banks under the mandate of the Tanzania Investment Centre (TIC), but it fails to define the term "land bank" or provide any legal framework for its governance. Additionally, the Land Act [Cap. 113 R.E. 2019], particularly under Section 4(1), vests all general land in the President, but does not acknowledge land banking as a formal mechanism for land acquisition or reservation. The institutional overlap between TIC, the Commissioner for Lands, and Local Government Authorities (LGAs) further complicates responsibilities related to land identification, acquisition, and management. Section 18(2) of the Land Acquisition Act [Cap. 118 R.E. 2019] still governs compensation in cases of land acquisition but remains outdated and inadequate in addressing the temporal nature of land banking. The conflict between investment interests and village land governance, as provided under the Village Land Act [Cap. 114 R.E. 2019], has led to procedural violations and breaches of Article 24 of the Constitution of the United Republic of Tanzania, 1977, which guarantees every person the right to own property and to fair compensation upon acquisition. Drawing on doctrinal research, statutory reviews, institutional reports, and case law, the article reveals significant legal gaps, particularly the lack of a centralised land inventory, inconsistent compensation practices, and regulatory uncertainty. It concludes by recommending legal reforms to integrate land banking into Tanzania’s statutory framework, specifically by amending the Land Act, Village Land Act, and Land Acquisition Act to provide clearer definitions, establish accountability mechanisms, and harmonise institutional roles.