How Do Foreigners Get Land in Zambia?
By Dickson Jere
How do foreigners manage to acquire land in Zambia? That is the question that keeps popping up in my inbox.
Let me address it here.
From the outset, the general legal position is that foreigners are not allowed to own land in Zambia. However, in 1995, the law provided eleven (11) exceptions under which foreigners could acquire land. Of these eleven exceptions, three are the most abused and have contributed to the current crisis.
Let me address them one by one.
1. Permanent Residents
Once a foreigner becomes a permanent resident in Zambia, they can acquire land. This follows an immigration process and a lengthy period of residence in the country. Personally, I would restrict this category and only allow permanent residents to lease land.
2. Investors
A foreigner holding an investor’s permit can acquire land in Zambia. This is the most abused category of all!
An investor is required to bring a minimum of USD 250,000 into Zambia to qualify for the permit. For many foreigners, this amount is relatively easy to raise, even through borrowed funds. Some use this route to acquire land, subdivide it, and then sell it to Zambians.
As a result, many foreigners who own land in Zambia use this route because it is relatively easy to access.
3. Companies
A company with majority Zambian ownership (75%) and 25% foreign ownership can acquire land in Zambia.
This is another abused provision of the law. Some foreigners establish companies and list their domestic workers, such as maids and garden workers, as majority shareholders. In some cases, these individuals may not even know that they are listed as owners of the companies.
Some foreign investors, particularly from Asian countries use this model.
4. Banks
Foreign banks are allowed to own land. I have no qualms about this model. Most banks are foreign owned and should be allowed to hold assets, including properties repossessed through mortgage arrangements.
This exception can remain.
5. Charities
The law also allows trusts and certain charitable organisations, including foreign religious organisations, educational institutions, schools, orphanages, and charities, to acquire land.
This is reasonable, as these organisations provide non profit services to communities. This exception can remain.
6. Foreign Companies
Companies incorporated by an Act of Parliament can acquire land in Zambia. A good example is TAZAMA, which is partly owned by Tanzania.
This exception is reasonable and can remain.
7. Inheritance
The law allows a foreigner to acquire land through inheritance if a Zambian citizen dies and bequeaths the property to them in a will.
In other words, you can leave your land to a non Zambian relative or friend in your will. This exception can remain.
8. Zambia Wildlife Authority (ZAWA)
A foreigner can obtain a concession within a national park to establish a business, such as a hunting safari operation or a camp.
The duration of the concession varies and can extend to 25 years. However, the concession does not amount to ownership of the land through title deeds.
I like this model, and we could replicate it outside national parks.
9. Cooperatives
A cooperative involving non Zambians may also qualify to acquire land, depending on the applicable legal requirements. Such cooperatives are often involved in activities such as agriculture or community development in the areas where they operate.
This exception can remain, but it requires strict monitoring.
10. Presidential Allocation
The law allows the President to grant land to a foreigner. There are no specific guidelines outlined here, as it is assumed that the President will exercise this power reasonably.
Such an allocation could be made as a gift to someone who has helped Zambia or to a fellow head of state.
However, I believe clear guidelines are necessary to prevent potential abuse in the future.
11. Leasehold
The final category concerns leases rather than ownership. It is less controversial because leasing land does not necessarily confer ownership of the land itself.
Where Does the Problem Lie?
As can be seen, the three categories most susceptible to abuse are:
1. Permanent residence permits.
2. Investor permits.
3. Companies with majority Zambian ownership.
We need to amend the law in these areas and tighten the requirements to prevent abuse.
As you can see, traditional leaders, including chiefs, are not directly listed among these exceptions. However, they allocate customary land to individuals who fall within these categories on the pretext of investment.
In other cases, Zambians acquire land from Chiefs or the State and subsequently sell it to foreigners who qualify under the exceptions. So Zambians are also aiding this scheme.
That is where the deal is! We need to amend the law and tighten restrictions.