TITLE:
Implication of Land Regularization in Accessing Credits from Financial Institutions in Tanzania
AUTHORS:
Jane J. Mbilinyi, Abiud L. Kaswamila, Emiliana A. Assenga
KEYWORDS:
Land Regularization, Formal Title, Formal Financial Institutions, Credit Access, Tanzania
JOURNAL NAME:
Current Urban Studies,
Vol.10 No.4,
November
9,
2022
ABSTRACT: A linkage between land regularization and access to
credit has been a policy priority in developing countries including Tanzania.
However, formal credit markets in these countries are underdeveloped and
expectations that land titling through land regularization improves access to credit are muted. A study to examine the implication of land
regularization in accessing credit from formal financial institutions in
Tanzania was carried out in two areas of Kimara and Buhongwa Wards in cities of Dar es salaam and Mwanza respectively. Data were
collected through household questionnaire survey and key informant interviews.
A total of 450 respondents were involved in this study. The regression model
was used to estimate credit access from financial institutions. Findings
observed insignificant implication to credit access mainly because most land
owners with certificate of right occupancy had no enabling environment to link legally documented plots with the formal financial
institutions to support household activation of investment on land. We also found that land owners issued with certificate of right of occupancy felt that,
lack of collateral was a major stumbling block for formal credit access. We conclude that there is a need to
restructure the financial plans to get coordinated and/or integrated with plans
to regularize land and structure
strategies to mitigate risks from households and/or firms and financial institutions to enhance household to access formal
credits and activation of investments on land in regularized areas.