Malawi
Malawi's proposed land policy engenders fears

Misanet.com / The Chronicle, 11 June - If approved, experts fear that Malawi's proposed new land policy could trigger an economic crisis. The draft before Parliament states that foreigners currently in possession of freehold land titles will within seven years of the coming into effect of the proposed land policy, obtain a Malawian citizenship in order to retain their ownership.

Freehold titles, which have been in force over the past 40 years, allow complete ownership of property for an unlimited period of time. Rafiq Hajaat, Director of the Institute for Policy Interaction, a non-governmental organisation, said the abolition of freehold titles would be detrimental to the country's ailing economy, because it would scare away foreign investors.

He says it would be illogical to force investors to become citizens of Malawi because of land ownership. "What this means is that anyone wishing to invest in land will be scared because seven years is too little for big time projects. An investor might as well go to another country," Hajaat warned.

He claimed that investors were not consulted in the preparation of the proposed land policy. Other analysts have described the proposed policy as "discriminatory" for using phrases such as "indigenous Malawians," An expert in Land Law, Gantoni Kainja, agrees with Hajaat, that the abolition of freehold titles is bound to create adverse economic repercussions. He said this could be a disincentive to foreign investors.

Kainja said the government may have to purchase the freehold estate from the freeholders first, before granting a lease. "It's otherwise difficult to see how the government can lawfully carry out this exercise," he said, adding: "This will prove very costly to the government with no apparent benefit to anyone."

Kainja said the proposed policy "will create fear and insecurity, particularly among business people, in view of the recent Zimbabwe experience." The tea and sugar industries in Malawi are expected to be hardest hit by the removal of unlimited, unhindered freehold tenure.

By Christopher Jimu,
The Chronicle (Malawi)

 

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